Ho Chi Minh City races to accelerate public investment disbursement

The pace of public investment has become a major challenge for HCM City as it seeks to sustain growth while ensuring that a large amount of public funding reaches projects and the wider economy on schedule.

According to the city’s Department of Finance, VND63.8 trillion had been disbursed by the end of July, equivalent to 43.2% of the 2026 allocation. Excluding savings set aside for a railway project, the rate was 45.4%.

Although the city’s disbursement value and rate were above the national average, the gap with its end-September target is still substantial. Under the current plan, the city must reach at least 70% by September 30.

A steep acceleration is needed

Finance Department Director Hoang Vu Thanh pointed out that disbursement had been affected by several bottlenecks, including site clearance, relocation of technical infrastructure, fluctuations in construction costs and shortages of building materials.

Some agencies have also been slow in preparing investment procedures, completing bidding documents and starting projects.

The pressure becomes even greater when the full-year target is taken into account. If the city meets 70% of its yearly target by the end of September, it will still need to disburse another 26.8% of the annual allocation in the final two months, equivalent to an average of 13.4% a month.

“In the remaining two months, we have to disburse 26.8%, or 13.4% a month on average, roughly twice the pace of the first months of the year. That is an extremely high pressure.”

The challenge is therefore no longer simply whether funding is available, but whether the city can absorb and deploy that capital quickly enough through the remaining project pipeline.

Transport projects expected to lead the push

Transport infrastructure accounts for a major share of HCM City’s public investment allocation in 2026.

The city’s Management Board for Investment and Construction of Transportation Projects was assigned nearly VND56.1 trillion, or around 40% of the total. By mid-August, it had disbursed about VND31.7 trillion, equivalent to 56.6% of its allocation.

Several major transport projects have recorded relatively strong progress. The project management board has also sought to increase quarry output and secure construction materials, while proposing timely construction price adjustments to ease pressure on contractors.

For HCM City, public investment is not viewed simply as government spending. It is also expected to crowd in private investment and create wider economic spillovers, particularly at a time when the city is targeting double-digit growth.

According to the National Statistics Office, the city will need growth of more than 11.7% in the second half of the year to meet its full-year target, adding pressure to ensure that public investment contributes effectively to economic activity.

Reallocating capital and holding leaders accountable

In response, HCM City People’s Committee Chairman Nguyen Van Duoc has called for the entire political system to follow a “six clear” approach and work toward 100% disbursement of public investment funds in 2026.

The city will monitor progress more frequently and use digital tools to track disbursement. Capital may also be shifted from projects that are not ready to spend to those that have completed the necessary procedures and can make payments promptly.

The city is also prioritising large and strategic infrastructure projects, while asking agencies to address site-clearance problems and shortages of construction materials.

Importantly, accountability for disbursement performance will be tied to the heads of agencies and local authorities, with “yellow card” and “red card” warnings planned for units and localities that fall significantly behind schedule.

Duoc said that achieving full disbursement would help accelerate private investment and directly support the city’s growth target.

With nearly VND147.6 trillion allocated for public investment in 2026, Ho Chi Minh City faces a race against time. Closing the gap from 43.2% disbursed at the end of July to full-year completion will require faster project execution, more flexible capital allocation and clearer accountability for results.

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