The Prime Minister on January 12 decided to enact a plan to restructure public investment during 2017-20, with a vision toward 2025, aiming to form a rational public investment structure, improve efficiency of public investment and quality of public investment management institutions, and effectively seek and use other sources of investment for developing the socio-economic infrastructure system.
The Prime Minister on January 12 decided to enact a plan to restructure public investment during 2017-20, with a vision toward 2025__Photo: Internet
Under Decision 63/QD-TTg, the plan will focus on core sectors of the economy and major projects that give impetus to socio-economic development and promote public and foreign investments in the form of public-private partnership (PPP).
Accordingly, the plan targets an annual disbursement rate of public investment of over 90 percent. The sum will be equal to 10-11 percent of the country’s gross domestic product (GDP).
Public investment from the state budget and government bonds will be prioritized for implementing the national target programs, national important projects and other major ones.
State-funded investment must be used as bait to raise capital from other economic sectors and create breakthroughs in luring private investment in major PPP projects, particularly those in health and education infrastructure facilities.
Official development assistance and concessional loans provided by foreign donors will be used first of all for building major and essential socio-economic infrastructure facilities and implementing rural and agricultural development projects.
To achieve the above goals, public investment regulations will be promptly revised to remove existing problems. Besides, the restructuring of public investments must be associated with the restructuring of the state budget and public debts.
It is also important to provide opportunities for the private sector’s investment in developing infrastructure and providing public services as well as completing the mechanism for PPP projects.- (VLLF)