(VEN) – Public investment restructuring is a phrase that has been mentioned a lot recently. In the message of the Vietnamese prime minister early this year, public investment restructuring was referred as an important link during the economic restructuring process.
This showed the determination of the government in public investment restructuring as it plays an decisive role in the general investment efficiency of the economy.
Addressing the issue whether the public investment restructuring plans will be feasible when the Public Investment Law has not been approved , economic expert Bui Kien Thanh made a comparison statement saying that public investment was like a patient that needs immediate treatment, and should not sit and wait for medicines.
In the meantime, some opinions also said public investment restructuring was a necessary job and functional agencies should not await a law but rely on the available legal documents and start the job right now.
The Public Investment Law was designed since 2009 according to the Resolution 72/2006/QH11 dated November 29, 2006 and continued to be drafted in 2010 according to the Resolution 883/2010/UBTVQH 12 dated February 09, 2010 of the Standing Committee of the National Assembly.
According to the Ministry of Planning and Investment, the draft has been done and will be submitted to the sixth session of the National Assembly in October.
In 2012, the Ministry of Planning and Investment reported that the public investment restructuring activities obtained positive results and prevented some chronic situations that have been lasting for many years. The Deputy Minister of Planning and Investment Cao Viet Sinh said according to regulations, projects of the D Group now could only prolong four to five years instead of seven or eight years like before. Similarly, projects of the C Group could only prolong three years instead of four to five years. The newly-establish projects have been limited and rampant investment state has been partly abolished.
Talking about this result, the Minister of Planning and Investment Bui Quang Vinh said despite initial positive results, the public investment restructuring process has not met the expectations of the Vietnamese people and society. Vietnam’s resources remain dispersed and therefore the public investment restructuring will continue to be implemented in 2013.
Accordingly, Vietnam will focus on attracting private investment in infrastructure while public investment will only prioritize social security issues and be reciprocal capital for Official Development Assistance and infrastructure projects that must involve the participation of the State. To do this, Vietnam will change the mechanism for attracting private investment that could allow simpler participation of the private sector to boost the country’s economic development. The country will also tighten control over investment allocation for localities to avoid wastes; accelerate privatization of the state economic corporations as they are the ones that use the State money most inefficiently.
Though, it doesn’t mean that the Public Investment Law means nothing to the public investment restructuring activities. By contrast, it is very necessary. However, the State capital sources will continue to be wasted if functional agencies only sit there awaiting the Public Investment Law to carry out the job./.