Startling with statistics of public investments

Regardless of the Vietnamese government’s measures on cutting down public investments in an effort to curb inflation, the actual results on public investment are raising many challenges.

According to the latest figure from the General Statistics Office (GSO), the total actual amount of capital from the state budget for development and investment was estimated at 17.8 trillion dong in May.

Totally in Jan-May, the total amount of capital from the state budget for development and investment was 73.3 trillion dong, or 39% of the year’s and up 14.8% from the same period last year.

In details, the GSO said of the above figure, the state-managed capital was 15.123 trillion dong, or 36.1% of the year’s plan and increasing 10.9% over the same period last year.

Meanwhile, the local capital was 58.236 trillion dong, or 39.8% of the year’s plan and up 15.9% year on year.

Some localities reported big actualized investment capital including Hanoi (6.096 trillion dong, or 30.4% of the year’s plan and up 17.3% y-o-y), HCM City (4.581 trillion dong, or 32.5% of the year’s plan and up 9.5% y-o-y), Da Nang (3.393 trillion dong, or 59.2% of the year’s target and up 14.2% y-o-y), Thanh Hoa (2.15 trillion dong, 44.2% of the year’s plan and up 42.9% y-o-y), Hau Giang (1.579 trillion dong, 73.5% of the year’s target and up 41.7% y-o-y), Can Tho (1.557 trillion dong, or 55.7% and 31.9%), and Ba Ria Vung Tau (1.486 trillion dong or 45.7% of the year’s plan and up 1.1% y-o-y).

The statistics showed that the reduction of public investments is not as easy as expected. If this disbursement momentum continues to be maintained, the government’s target to cut public investment this year, perhaps, will become very difficult in the last months of this year.

At a recent session of the National Assembly (NA), on behalf of the Government, the Minister of Planning and Investment Vo Hong Phuc said that the investment capital source from the state budget this year will be 152 trillion dong and about 45 trillion dong from government bonds.

With this total amount of 197 trillion dong, the government will cut down the investments from the state credit and state-owned enterprises. In addition, the government will not advance funds for 2012 and not transfer the funds of 2010 to 2011.

High level of public investment is considered one of the causes of Vietnam’s current high inflation. – Vietbiz24

Posted by VBN on Jun 1 2011. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry