Public investment disbursement remains slow, Ho Chi Minh City continues to promote

In late September 2023, many households on Duong Quang Ham Street (Go Vap District) simultaneously demolished their houses and structures to hand over the land. Duong Quang Ham Street is currently narrow, with many sections only wide enough for cars to pass through. But in the near future, the section from Binh Thanh District to Go Vap Cultural Park will be expanded to 32 m, with 3 lanes on each side, 4.5 m wide sidewalks, trees, and lighting.

Bright spot

To expand, the Go Vap District government had to reclaim land from 425 households and organizations. Mr. Nguyen Cong Lam (living in Ward 5, Go Vap District), whose house on Duong Quang Ham Street had more than 40 square meters ^{of land} reclaimed, said he was willing to hand over the land to expand the road in front of his house. After the reclamation, Mr. Lam's house had nearly 60 square meters ^left .

Not only did he hand over the premises early, Mr. Lam also encouraged the surrounding households to hand over the premises early. "My wish is for the streets to be airy and clean so that every time I open the door, I can see a wide road. This dream has been around for more than 20 years," Mr. Lam shared.

This man drew a dream route with a wide road stretching from Luong Ngoc Quyen Street (Binh Thanh District) to Nguyen Van Luong Street, the section in front of Go Vap Cultural Park. With a wide road, people do not have to jostle on Phan Van Tri Street during rush hour, which is the main route from the center to Go Vap District and District 12.

Many households demolished their houses to make way for the Duong Quang Ham Street expansion project.

Mr. Do Anh Khang, Vice Chairman of Go Vap District People's Committee, said that the compensation payment started on July 24, but after only one month, it had reached 70% of the plan. To achieve that result, Mr. Khang said it was due to good preparation, especially legal documents so that when people had questions, they could be explained immediately. On the other hand, Go Vap District also researched the best compensation and resettlement policy to propose to the Ho Chi Minh City People's Committee for approval. Specifically, the compensation price of the project is approaching the market, land on the street front has an average price of 85 million VND/m2. As for resettlement, the district is reporting to the City to consider arranging land for households that have been cleared.

The Vice Chairman of Go Vap District also said that the implementation of this project is more systematic than before. The district has established a steering committee headed by the District Party Secretary, assigning specific tasks to departments and units in the political system. In addition, the district has also received support from Ben Cat Parish for applying the best possible compensation policies. To acknowledge and commend the local efforts, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai sent a letter of commendation to the Party Committee, government and people of Go Vap District.

Hot above, cold below

The compensation project for Duong Quang Ham Street in Go Vap District is a rare bright spot in the picture of public investment disbursement in Ho Chi Minh City.

For compensation capital alone for site clearance, this year Ho Chi Minh City needs to disburse over 27,000 billion VND for 153 projects, and is the largest amount in the history of compensation, support and resettlement work of Ho Chi Minh City. After the first 4 months of the year, the whole city has disbursed less than 500 billion VND, the Department of Natural Resources and Environment has warned that the disbursement of compensation capital will not meet the plan if local leaders continue to be "indifferent".

However, by the end of August 2023, Ho Chi Minh City had only disbursed over VND6,300 billion, reaching more than 35% of the plan. Director of the Department of Natural Resources and Environment Nguyen Toan Thang said that only two projects, Ring Road 3 and Duong Quang Ham Street (Go Vap District) had high disbursement rates, the rest were mostly at an average level, including 25 projects with very low disbursement rates.

Not only is the compensation capital disbursed slowly, but construction projects are also sluggish, especially the four major project management boards of Ho Chi Minh City (Transportation, Urban Railway, Infrastructure and Industrial Civil) accounting for 70% of public investment capital in 2023. In total, public investment disbursement up to August 25, Ho Chi Minh City has only disbursed 19,282 billion VND, reaching 28% of the actual plan of 68,490 billion VND.

Compared to the same period last August, only more than 9,000 billion VND was disbursed, equivalent to 23%. The volume and disbursement rate of Ho Chi Minh City this year are both higher, but compared to the set target, it is not achieved. Specifically, Ho Chi Minh City set a target of disbursing 35% by the end of the second quarter of 2023, 58% by the end of the third quarter, 91% by the end of the fourth quarter, and at least 95% by the end of January 2024 (disbursement statistics year). Ho Chi Minh City is currently in the group of localities with low disbursement rates among 63 provinces and cities nationwide.

Meanwhile, the Ho Chi Minh City People's Committee has issued an action plan to promote the disbursement of public investment capital. The Standing Committee of the Ho Chi Minh City Party Committee has established 13 working groups to monitor and urge the progress of 38 key projects with a total capital of 49,600 billion VND. The City People's Council has also established a specialized monitoring team on public investment, surveyed many large projects and worked with investors and local management to jointly resolve the issues.

What is the solution for the last 4 months of the year?

Director of the Department of Natural Resources and Environment Nguyen Toan Thang said that recently the unit has directly gone to each locality, together with the Chairman of the People's Committee of the district to remove obstacles in compensation work because all documents for preparing compensation plans are carried out by the locality.

Chairman of the Ho Chi Minh City People's Committee Phan Van Mai assessed that the disbursement of more than VND 49,000 billion in the last 4 months of the year is a very large amount, a very heavy task and requires a lot of concentration to achieve 95% as directed by the Prime Minister . "At the beginning of the year, 13 inspection teams were established, but now it is still slow, so we continue to issue documents to urge the Party Committee," said Mr. Mai.

Presenting the direction to resolve the problems of land clearance, the leaders of Ho Chi Minh City analyzed the responsibility not only of the local government but also of the departments and agencies, the land valuation council. Currently, the implementation time of the steps takes 1 month, but Mr. Phan Van Mai requested the Department of Natural Resources and Environment, the Department of Finance, and the Office of the Ho Chi Minh City People's Committee to be closer so that within a week, it can be issued for compensation by districts.

For investors, the head of the Ho Chi Minh City government suggested that they must closely follow each project and coordinate with departments to have construction sites. "The major management boards must be decisive, ensuring that they reach 95% by the end of the year. If these boards reach the finish line, the city will basically reach the finish line," said Mr. Phan Van Mai.

Tighten the responsibility of heads of agencies and units

Like in 2022, this year Ho Chi Minh City decided to use the criteria for disbursement of public investment capital to evaluate the level of work completion of the heads of investors. If the disbursement result is below 90% due to subjective errors, the heads and investors of related projects will not be considered for emulation for excellent task completion. In April 2023, Chairman of Ho Chi Minh City People's Committee Phan Van Mai criticized 25 units that have not disbursed or disbursed very little public investment capital in the first quarter of 2023. However, the disbursement progress is still slow.

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