Vietnam’s finance minister says poor project preparation is slowing public investment disbursement
At a National Assembly question and answer session on November 12, Finance Minister Ngô Văn Tuấn said project preparation and implementation were the main weaknesses in public investment disbursement. As of October 31, 2026, the merged national target program had disbursed just 7.9% of its funds; foreign capital disbursement stood at 35.42% at the end of October.
On the morning of November 12, Vietnam’s Finance Minister Ngô Văn Tuấn told a question and answer session of the 16th National Assembly’s second session that public investment projects pass through several stages, from funding proposals to final settlement. Based on the Finance Ministry’s monitoring, the weakest stage is currently implementation, particularly project preparation. Some projects have been allocated funds but still cannot proceed or disburse funds on schedule.
Vietnam’s Finance Minister Ngô Văn Tuấn speaks during a National Assembly question and answer session.（VietVance）
Tuấn said that since July 2025, the Finance Ministry has asked ministries and local authorities to update lists of projects planned for 2026, 2027 and subsequent years to prepare the 2026–2030 medium-term public investment plan. Once the budget is approved, funds will be allocated to individual projects in accordance with the prescribed conditions.
2026 is the first year of the merged national target program. The central budget has allocated VND 3.5 trillion, including about VND 1 trillion for recurrent spending and VND 2.5 trillion for investment. As of October 31, the disbursement rate was just 7.9%. Tuấn described the rate as very low and said the 2026 disbursement plan was unlikely to meet its targets. He said the relevant agencies should prepare thoroughly to accelerate progress from 2027.
Disbursement of official development assistance funds also faces obstacles. By the end of October 2026, the disbursement rate for foreign capital was 35.42%. Tuấn said the estimated need for official development assistance funding in 2026–2030 exceeds VND 1,000 trillion, but projects must meet both Vietnamese legal requirements and donors’ conditions. The Finance Ministry is discussing ways to align procedures with major donors, while Vietnam is revising its Public Investment Law and related regulations.
Finance Ministry figures show that an official development assistance project takes at least four years on average from preparation to fund disbursement. The ministry aims to shorten that period to 18–20 months. Tuấn said obtaining a donor’s no-objection letter for project adjustments can take a long time. Land clearance is another issue that must be resolved, with the relevant agencies and local authorities responsible for doing so.
Source: VietVance
