Deputy PM urges Hanoi to disburse over 100% of public investment capital in 2025

1:22 PM, Thu March 27, 2025

Hanoi's 2025 public investment capital plan is US$3.4 billion, 1.13 times higher than the previous year.

Deputy PM urges Hanoi to disburse over 100% of public investment capital in 2025- Ảnh 1.

The overview of the meeting.

Deputy Prime Minister Tran Hong Ha on March 26 chaired a working session with the Hanoi People's Committee to review, urge progress, and resolve obstacles in disbursing public investment capital for 2025.

The meeting was connected online with the People's Committees of districts and towns across the city.

Hanoi's 2025 public investment capital plan, approved by the Prime Minister, is VND87 trillion (US$3.4 billion), 1.13 times higher than the 2024 plan, and accounting for 10.5% of the total national public investment capital approved by the National Assembly.

As of March 24, 2025, the city had disbursed VND5 trillion ($194 million), or 5.8% of the plan.

According to Deputy Chairman of the Hanoi People's Committee Nguyen Trong Dong, the biggest challenge in implementing projects is site clearance.

Hanoi has four projects using central budget funds. Of the city-level projects, 62 out of 282, and of the district-level projects, 31 out of 570 face difficulties with site clearance. Some projects are stuck between two versions of the Land Law, each with different support policies.

Typical examples include Hanoi's urban railway line No.2 (Nam Thang Long - Tran Hung Dao) and the Yen Xa wastewater treatment plant, both of which are behind schedule.

These two projects have failed to meet their annual disbursement targets and must be shifted to the 2026-2030 period due to delays in site clearance, adjustments in investment policy, project changes, and extended, complex procedures.

There are also no technical standards, norms, or cost frameworks for urban railways, making implementation difficult.

At the meeting, representatives from Hanoi's departments, agencies, and localities also discussed challenges and proposed solutions, requesting support from national ministries.

For example, the Nhon-Hanoi Station urban railway project is facing obstacles in signing contract annexes for underground package CP06 and adjusting the cost for package CP03.

Upcoming investment projects like the 3.2 urban railway line (Hanoi Station – Hoang Mai) and urban railway line No.5 are stuck in lengthy investment procedures requiring input from many parties.

Other projects are delayed due to issues in planning, defining red-line boundaries, environmental impact assessments, and fluctuating construction material prices.

Projects using ODA funds are also facing problems due to complex technologies, and differences between Vietnamese laws and international contract regulations.

The Hanoi People's Committee proposed that the Government submit a request to the National Assembly to revise and unify regulations in sectoral laws, the Public Investment Law, and the State Budget Law.

This would help clearly define the roles of local authorities and allow district-level projects to be reassigned to new managing units.

To ensure continuity in capital planning and avoid delays between People's Council meetings, Hanoi suggested revising the Public Investment Law to give more decision-making power to local governments, allowing them to manage and adjust capital plans according to real conditions.

The city also proposed shifting to a flexible funding allocation model based on actual monthly project progress, instead of allocating full funding at the beginning of the year.

For major national, regional, and ODA projects, Hanoi requested that the Prime Minister approve project proposals using ODA funds soon, so the city can move forward with the next steps.

In 2025, Hanoi aims to begin construction on three bridges crossing the Red River: Tu Lien, Tran Hung Dao, and Ngoc Hoi. Tu Lien Bridge is scheduled to start construction on May 19.

To meet this deadline, the Hanoi People's Committee requested that the Government and National Assembly revise the Bidding Law and relevant decrees to speed up preparations for these key and urgent projects.

In the meantime, Hanoi proposed that the National Assembly's Standing Committee allow the city to use direct contractor appointment methods for all consulting and non-consulting packages related to the three bridge projects.

Specifically, for the Tu Lien Bridge project, the city asked to appoint contractors for all packages and allow site clearance to proceed as an independent project before other stages begin.

Regarding the road project connecting Gia Binh Airport and downtown Hanoi, the city asked the Prime Minister to soon decide on the route and investment mechanism, so Hanoi and Bac Ninh Province can begin implementation.

Deputy Prime Minister Tran Hong Ha said that Hanoi's Q1 2025 public investment disbursement was lower than the national average.

In reality, Hanoi has taken the initiative, but this period is mainly for preparation. The disbursement push will begin in earnest from now until year-end, he said.

He expressed confidence that Hanoi could achieve the highest possible disbursement rate – at least 95% as committed – given that the capital allocation was large but still modest compared to actual needs.

He urged Hanoi to aim even higher, targeting over 100% disbursement of the capital plan, and to resolve obstacles by the end of April.

Deputy Prime Minister Ha acknowledged the city's proposals and requested that the Ministries of Finance, Agriculture and Environment, and Construction, and the Government Office review and submit clear recommendations to the Government and the National Assembly.

For ODA projects, he assigned the Ministries of Finance and Foreign Affairs to work directly with the French Embassy in Vietnam and French authorities to speed up agreement signing.

Regarding the Tu Lien, Tran Hung Dao, and Ngoc Hoi bridges, the Deputy Prime Minister requested Hanoi to report to the Government and the Prime Minister on the urgency of early implementation.

He also asked the city to commit to full responsibility in selecting capable investors and ensuring high-quality investment.

He directed the Government Office to prepare a report to the Prime Minister for inclusion in the Government's Resolution.

For the project to upgrade National Highway 21A connecting Son Tay – Hoa Lac – Xuan Mai, Deputy Prime Minister Ha agreed to assign the Hanoi People's Committee as the managing agency to oversee the entire project.

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