11:35 | 11/09/2018 Economy
(VEN) - The Ministry of Planning and Investment is studying the feedback and suggestions from the various ministries, sectors and cabinet members on the revised Law on Public Investment. The ministry expects that the revised law will improve the efficiency of state-funded investment.
The seventh session of the 13th National Assembly approved the Law on Public Investment in 2014, and it took effect on January 1, 2015. According to the Ministry of Planning and Investment, the legislation created a comprehensive legal system to manage the whole process of public investment.
The government issued a series of decrees to implement the law, such as Decree 77/2015/ND-CP dated September 10, 2015 on medium-term and annual public investment plans, Decree 84/2015/ND-CP dated September 30, 2015 on supervision and assessment of investment, Decree 131/2015/ND-CP dated December 15, 2015 on providing guidance on important national projects, Decree 15/2015/ND-CP dated February 14, 2015 on investment in the form of public-private partnership (PPP) and Decree 63/2018/ND-CP dated May 4, 2018 on PPP investments to replace Decree 15.
The Ministry of Planning and Investment also issued various circulars to implement the law. These include Circular 22/2015/TT-BKHDT dated December 18, 2015 on reporting formats for investment supervision and assessment, and Circular 02/2016/TT-BKHDT dated March 1, 2016 on providing guidance on preliminary selection, appraisal and approval of project proposals, and feasibility study reports on PPP investment projects, and Circular 07/2017/TT-BKHDT dated December 14, 2017 on regulating and guiding national targets issued in Decision 41/2016/QD-TTg dated October 10, 2016.
According to the Ministry of Planning and Investment, decrees and circulars have basically met the requirements of implementing the Law on Public Investment. During the 2015-2017 period, some positive changes were made. Specifically, the rate of public investment in gross domestic product (GDP) was narrowed in line with the goals of restructuring investments of the party and state, while total realized social investment capital under the state budget also dropped.
After three years of implementation, initial results have been positive, but amendments and supplements are required for various reasons.
According to the Ministry of Planning and Investment, public investment has shifted in line with investment orientations for the 2016-2020 period, but it is not sustainable and still shows a high degree of dependence on the state budget.
In addition, there are some inconsistencies between the Law on Public Investment and other laws such as the Law on State Budget, Law on Environmental Protection, Construction Law, and the Land Law.
To overcome the shortcomings, National Assembly Resolution 24/2016/QH14 dated November 8, 2016 on restructuring the economy in the 2016-2020 period emphasizes the restructuring of public investment of borrowing and repaying public debts. In addition, perfecting investment management according to international practices, with priority given to renewing the evaluation and the selection of investment projects is mentioned as necessary.
The Ministry of Planning and Investment expects that amendments to the law to meet the goal of decentralizing and giving clearer authority to ministries, sectors and localities – in particular defining what is the responsibility of chairpersons of provincial-level people’s committees and ministers. It is also necessary to promote the simplification of administrative procedures, create transparency and facilitation in allocating capital, and improve efficiency of public investment management.
The revised Law on Public Investment is expected to have a positive impact, contributing to the efficiency of public
investment and improving the business environment towards transparency.