Government cuts 45tr dong in public investment

The government’s determination is to cut public investment by 80 trillion dong in 2011, accounting for 9-10% of total social investment capital, the government said in its website.

According to data of Ministry of Industry and Trade, from the government’s Resolution No 11/NQ-CP being issued (February 24, 2011) till the end of May, municipal agencies and governances cut and transferred the state sourced investment and development investment in 2011 planning of 2,048 projects worth over 5.556 trillion dong.

In which, ministries and central agencies deplayed, transferred and reduced 209 projects capitalized at total nearly 1.116 trillion dong; municipal governances 1,768 projects worth 4.44 trillion dong. In the country as a whole, 1,145 newly-started and delayed projects were cut with estimated costs of approximately 3.150 trillion dong and 903 transitional projects worth 2.407 trillion dong were transferred.

The capital cut from these projects has been added to 283 urgent projects worth 868 billion dong within the year.

As for the government bond capital source, agencies and ministries checked and reduced, transferred 126 projects with the cut amout of around 2.778 trillion dong.

Meanwhile, state groups and corporations suspended and extended progress of 907 projects with total capital of more than 39.212 trillion dong, equaling to 10.7% of the year’s investment development projection.

The enterprises subject to the capital cutting planning till late May 2011 included Vinalines (down 38.4%), Saigon Water Supply Corp (-50.6%), the Electricity of Vietnam (cutting over 12.159 trillion dong), PetroVietnam (around 7.252 trillion dong), and Vinacomin (reducing 4.787 trillion dong).

Therefore, about 30 trillion dong will have been cut down due to the government’s policies, including 15 trillion dong of G-bond capital. – Vietbiz24

Posted by VBN on Jun 3 2011. Filed under Banking-Finance, 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