According to the Ministry of Finance, public investment disbursement reached VND425.3 trillion, equivalent to 41.9% of the plan assigned by the Prime Minister as of July 31.

Of the total, central government investment accounted for VND117.6 trillion, equal to 32.3% of the annual target, while local government spending reached VND307.8 trillion, representing 47.3%. Compared with the same period in 2025, the disbursement rate increased by 3.6 percentage points, with total disbursed capital rising by VND86.8 trillion.

However, five ministries, central agencies and localities had disbursed less than 10% of their allocated capital or had yet to make any disbursement, underscoring mounting pressure to accelerate implementation during the remainder of the year.

Excluding 5% of local budget savings earmarked for the Lao Cai-Hanoi-Hai Phong railway project and additional funding allocated in July, the effective disbursement rate stood at around 43.8%.

The National Assembly approved and the Prime Minister assigned a total public investment plan of VND1,014.2 trillion for 2026.

The Ministry of Finance said VND83.2 trillion has yet to be allocated. The funding is expected to support new investment projects once procedures are completed, national target programmes, and initiatives related to science and technology, innovation and digital transformation.

Bottlenecks continue to slow progress

The Ministry of Finance attributed the slower-than-expected pace to both external and internal factors.

Construction material shortages and price fluctuations have delayed project execution, while land clearance is difficult in many localities due to planning adjustments, infrastructure relocation and compensation issues.

New projects continue to face lengthy investment approval procedures. ODA-funded projects are also encountering complex disbursement and procurement processes, while science and technology projects require additional time to complete technical assessments and investment documentation.

Heavy rainfall in July further disrupted construction, inspection and payment procedures in several localities.

Government pushes for faster disbursement

Finance Minister Ngo Van Tuan has instructed ministries, sectors and localities to strive for full disbursement of their allocated capital in 2026, meeting the deadline and ensuring investment efficiency.

The ministry also called for unused capital from slow-moving projects to be reallocated to projects with stronger implementation capacity, alongside faster land clearance, improved access to construction materials and streamlined payment procedures.

Beginning in October, Vietnam will introduce a performance scoring system for public investment disbursement under the Prime Minister's Decision 1129. The system, currently undergoing pilot implementation, is expected to improve transparency, strengthen accountability and provide a more effective tool for monitoring public investment performance nationwide.

PM urges focus on inflation risks, public investment at cabinet meeting

VOV.VN - Prime Minister Le Minh Hung urged deeper analysis of inflation risks and faster public investment disbursement while chairing the Government’s regular meeting for April 2026 on May 4.