Disbursement tied to effectiveness

Vietnam is intensifying efforts to disburse public investment capital, but a critical question remains: what tangible value will completed projects bring to citizens, businesses, and local economies? Provinces like Lâm Đồng are under significant pressure to speed up spending. The province's Project Management Board No. 3 and its regional counterparts oversee 255 projects totaling more than 4.326 trillion VND. Project Management Board No. 2 manages an additional 3.326 trillion VND allocated to 424 projects. The province aims to expedite civil projects, linking disbursement results to the accountability of officials and leaders.

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Capital sitting on paper cannot create roads, bridges, schools, or parks. A project with slow disbursement means social resources are 'frozen,' and development opportunities are held back.

Accelerated disbursement is seen as a necessary condition for achieving double-digit growth, as capital tied up in bureaucratic processes cannot build essential infrastructure like roads, bridges, schools, or parks. Delays in project execution mean frozen social resources and stifled development opportunities. However, focusing solely on disbursement percentages fails to address the broader economic implications.

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A project can be completed on time, settled, and fully disbursed, but if it is poorly utilized afterward, lacks connectivity, has low capacity, or fails to create livelihoods for the people, then public funds have not realized their true value.

Economic experts argue that a project can be completed on time, fully disbursed, and officially closed, yet still fail to deliver its intended value if it is underutilized, lacks connectivity, operates at low capacity, or does not create livelihoods for the local population. Public investment capital, derived from taxes and national resources, requires responsible stewardship.

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Public investment capital is not just state capital, but also tax money, resource money, land money, and many other resources that people and businesses contribute. Therefore, the responsibility of the decision-maker, the implementer, does not stop at 'disbursement completed,' but must go to the end of creating livelihoods for the people and supporting business development.

Therefore, the responsibility of decision-makers and implementers extends beyond merely "completing disbursement." It must encompass ensuring the project ultimately generates livelihoods and supports business development. The National Assembly's Resolution No. 27/2026/QH16 on the public investment plan for 2026-2030 reinforces this, requiring assessments of socio-economic effectiveness, infrastructure capacity, and improvements in people's lives. This approach moves beyond mere disbursement rates to encompass the crucial aspect of project impact.

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Resolution No. 27/2026/QH16 of the National Assembly on the public investment plan for 2026-2030 also requires assessing socio-economic effectiveness, infrastructure capacity, and the extent of improvement in people's lives; that is, not just chasing disbursement rates, but also including the effectiveness aspect.