Creating a "breakthrough" in public investment disbursement

Public investment has been identified by Dong Nai City as a key driver of economic growth, generating spillover effects across multiple sectors and contributing to the city’s goal of achieving double-digit growth in 2026.

Accordingly, the city is implementing a series of strong and decisive measures to accelerate the disbursement of public investment capital.

Construction of Project 25C Road, section from National Highway 51 to Backroad 19.

Striving to disburse over 50% of the capital plan in the first 6 months

In 2026, Dong Nai City’s total state budget public investment plan exceeds VND27 trillion. As of May 5, total disbursed public investment capital had reached more than VND2.6 trillion, equivalent to nearly 10% of the annual plan. Although significant efforts have been made, disbursements during the first four months of the year have still fallen short of expectations.

According to Tran Anh Tu, Deputy Director of the Department of Finance, there are three major groups of factors affecting public investment disbursement progress in recent times: obstacles in site clearance work; extensions and adjustments to project implementation schedules and investment policies; and fluctuations in construction material prices, supply chains, and fuel costs. Among these, difficulties in land clearance are considered the primary bottleneck affecting disbursement progress. Specifically, 83 projects across the city have yet to receive fully cleared land for construction.

Dong Nai City Party Committee member and Vice Chairman of the City People’s Committee Ho Van Ha stated that site clearance remains the “largest bottleneck” in public investment disbursement, especially for transportation infrastructure projects.

To accelerate land clearance and support project construction, in early May 2026, the City People's Committee issued directives to relevant agencies to urgently implement compensation, support, resettlement, and land acquisition procedures for five key transport projects, including: Ring Road 4 of Ho Chi Minh City, Huong Lo 2, upgrades and expansions of Roads 773 and 769, and construction of Road 770B.

At the same time, on May 5, the City People's Committee sent a document to units and localities regarding focusing on implementing tasks to promote economic growth in the second quarter of 2026. Under the directive, the Department of Finance and the Department of Construction are tasked with coordinating with project investors to establish detailed monthly and quarterly disbursement plans and to commit to specific implementation schedules for each project. Local ward and commune authorities will bear direct and comprehensive responsibility for compensation, support, resettlement, and land clearance within their jurisdictions.

The City People's Committee has set a target of achieving a public investment capital disbursement rate of at least 50% of the plan in the first six months of 2026. This endeavor would create room to drive growth in the following quarters and make a positive contribution to the city's overall GRDP growth target.

According to the Department of Finance, as of the end of April 2026, 106 projects in the city were still being deferred or postponed to concentrate resources on projects considered more urgent. Disbursement for these projects has been temporarily suspended.

Shifting from "quantity-based investment" to "output-based investment efficiency"

Alongside promoting solutions for site clearance and project construction progress, to improve quality and increase the capital disbursement rate, the City People's Committee assigned the Department of Finance to lead and coordinate with relevant departments, sectors, and units to urgently review and propose a list of public investment projects in the direction of strongly shifting from a "quantity-based investment" mindset to "output-based investment efficiency."

Accordingly, during the review process, projects must be evaluated based on both investment efficiency and post-investment operational effectiveness. Authorities are required to firmly propose remedial measures for projects experiencing delays, cost overruns, low efficiency, poor utilization, or an inability to meet assigned schedules. In particular, Dong Nai City has pledged to eliminate ineffective projects that are unnecessary, non-urgent, no longer feasible, or unlikely to be completed, thereby avoiding fragmented investment, waste, and resource losses.

Previously, at a working session in late April 2025 reviewing public investment disbursement progress, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People’s Committee at the time (now Deputy Secretary of the City Party Committee, Chairman of the Dong Nai City People’s Committee) Nguyen Van Ut instructed the Department of Finance to continue reviewing and proposing the suspension or cancellation of public investment projects in accordance with Government directives. These include ongoing projects that fail to deliver socio-economic efficiency, projects lacking site clearance, and projects without adequate construction material supply sources. “All capital resources must be prioritized for the Central Government’s and the City’s key projects and works,” Nguyen Van Ut emphasized.

By Pham Tung – Translated by Mai Nga, Minho