(VOVworld) – Public investment restructuring is one of three key areas for restructuring the national economy over the past three years. The other two are SOEs and the banking system. At the ongoing NA meeting, a number of deputies have proposed ways to complete this important mission.
In three years, economic restructuring has achieved macro-economic stability, controlled inflation, maintained the growth rate, restructured the economy, and improved investment quality.
Some areas, particularly transportation infrastructure succeeded in mobilizing non-State investment in public projects. State budget was allocated to key and urgent projects. In 2012, nearly 1,300 projects were cut, an additional 220 projects in 2013, and so far this year, another 42 projects.
Deputy Hoang Dang Quang, Vice Secretary of the Party Committee of Quang Binh province and head of the provincial NA deputy delegation, is talking with voters of Quang Trach
The policy on public investment management has been promulgated to improve investment efficiency. Recently, the NA adopted the Law on Public Investment, the most fundamental legal foundation for this activity. Hoang Dang Quang, a deputy from Quang Binh province, has this to say:
“From 2011 to 2013, we changed the way of accessing pubic investment management to overcome weaknesses of the previous period. During the implementation process, we have gradually focused the scattered allocation of capital to reduce losses and avoid wastefulness. The allocation of capital from the state budget and government bonds was made in line with 5-year and annual investment plans. The number of new projects has been reduced and capital construction debt has been gotten under control. These are great accomplishments of the government in management and governance.”
But there remain many pending issues in restructuring public investment. Minister of Planning and Investment Bui Quang Vinh says it’s a matter-not-just of implementing policies but of better orientations for public investment activities. He says:
“We shouldn’t be satisfied with the achievements of the initial period. Current growth is demanding that we speed up the process and make it better. Both the quality of our economy and the driving force for our growth remain problems. It’s time to change the growth model and institutions.”
Deputy Nguyen Trong Truong from Bac Ninh province
Though policies on public investment management have been issued, they are not clear enough and will need to be supplemented. A deputy from Bac Ninh province, Nguyen Trong Truong, says:
“The government should promulgate documents to guide implementation of the Law on Public Investment and Law on Mastering, and amend and supplement the State Budget Law to ensure coordination. We also need a decree on mid-term investment, and regulations on public, private, and partnership investment forms to replace a Prime Minister decision to promulgate the regulation on pilot investment in the PPP form.”
Deputy Hoang Dang Quang from Quang Binh says public investment should give priority to industry, agriculture, and high-tech, which can lead the national economic structure to modernization. The restructuring of public investment should take into consideration regions and key fields to make appropriate adjustments. Quang explains further:
“We should give top priority to investment in provinces and regions which are often struck by natural calamities and climate change and poor localities that have difficulty attracting private investment for infrastructure development. The next priority should be given to agriculture, with a focus on the sector’s restructuring projects. I recommend an increase of public investment in education and training, healthcare, science and technology, and human resource development.”
Bui Van Phuong, a deputy from Ninh Binh in his address at a plenary session (Photo: PV)
To make public investment restructuring effective, NA deputies also proposed mechanisms to encourage private investment in infrastructure projects and potential areas. Bui Van Phuong, a deputy from Ninh Binh, says:
“Due to difficulties in the national economy and state revenue, there isn’t much capital in the state budget for public investment. So it’s essential to boost investment from other economic sectors including overseas investment. The national economy will hardly develop unless investment forms are diversified.”