Full public investment disbursement to boost 2026 growth by 1.7 percentage points

Outlining these priorities before the National Assembly at the Q&A session on November 12 in Hanoi, Deputy Prime Minister Nguyen Van Thang affirmed the government's resolve to accelerate fund deployment while expanding private capital mobilization through public-private partnerships (PPPs) and optimizing official development assistance (ODA).

The Deputy Prime Minister stressed that private sector participation in PPP projects, particularly transport infrastructure, serves as a strategic avenue to expand development resources. Globally, developed economies have long utilized two primary models: private enterprises building and operating infrastructure to recover capital through user fees, or state-funded construction followed by operations and maintenance (O&M) transfers.

In Vietnam, build-operate-transfer projects are more common, typically spanning around 20 years to match corporate financial capacity, given that commercial bank loans generally run for 10 to 12 years and require investors to inject substantial equity.

To attract private investment, the Law on Public-Private Partnership Investment allows state financial participation of up to 50% of total project investment, and up to 70% in exceptional cases, alongside revenue-risk sharing mechanisms providing budget support if actual revenue drops between 75% and 90% of financial projections.

 These provisions have resolved major capital recovery bottlenecks and improved investment efficiency in new projects. Concurrently, the Ministry of Construction is studying pilot auctions and tenders for toll collection rights under the O&M model across several initiatives, including sections of the North-South Expressway, shielding investors from site clearance and construction execution risks.

Regarding external funding, Deputy Prime Minister Nguyen Van Thang noted that Vietnam still requires ODA alongside domestic resources to address substantial infrastructure needs, as public debt, foreign debt, and government debt ratios remain well below National Assembly ceilings. However, with low-cost concessional financing largely phased out, future ODA borrowing will be calculated rigorously to ensure efficiency and debt safety, focusing strictly on projects delivering high economic, social, and financial returns rather than dispersed investments.

Reviewing execution results, the Deputy PM reported that public investment disbursement reached approximately 74% of the annual plan in the first 10 months of 2026, marking a positive outcome for the opening year of the term.

Addressing lawmakers' questions regarding advance payments, he clarified that advancing 30% of contract value to contractors for material procurement and site preparation is standard regulatory procedure during the initial year of launching new projects, rather than an irregularity.

The government continues to direct rigorous efforts to ensure capital turns into substantive project delivery, aiming to fulfill 100% of the 2026 disbursement target and contribute 1.7 percentage points to national economic growth.

Hanoi, HCM City lead in 10-month public investment disbursement

VOV.VN - Hanoi and Ho Chi Minh City have led in disbursement value, while Dien Bien province recorded the highest score in the assessment of 2026 capital-plan implementation.

Public investment disbursement reaches 55.5% of 2026 target

Vietnam disbursed VND567.77 trillion (US$21.85 billion) in public investment capital as of September 24, equivalent to 55.5% of the plan assigned by the Prime Minister, according to a report by the Ministry of Finance.