Who is responsible for the series of ineffective investment projects?

In the 5 years from 2011 to 2015, the growth rate of Vietnam's public debt is 2-3 times higher than GDP, causing an imbalance in debt repayment capacity, especially the term of public debt to be paid is shorter than the achieved rate.

Although public debt is increasing, a series of projects and construction works with investment capital of thousands of billions are still in a state of "shelving" such as Dinh Vu fiber, Ninh Binh fertilizer, Thai Nguyen iron and steel... causing many investments to be made but unable to repay debts.

Thai Nguyen Iron and Steel Plant is in the investment process but the estimated investment rate has doubled. (Illustration photo: KT)

Speaking to the press on the sidelines of the 14th National Assembly, Dr. Nguyen Duc Kien, Deputy Chairman of the National Assembly Economic Committee, said that the Ninh Binh Fertilizer Plant has been put into operation but has lost 1,500 billion VND in the past 2 years. As for the Dinh Vu fiber plant, the investment process is complete but production has no output. The Thai Nguyen Iron and Steel Plant is in the investment process but the estimated investment rate has been doubled.

“To confirm the effectiveness of the project after the total investment was increased to more than VND8,000 billion, whether it is effective or not, and the payback period, the IRR index is 7 or how much is still undetermined. As the conclusion of the Government Inspectorate, it is necessary to recalculate the options to make an investment decision. Even for Thai Nguyen Iron and Steel, the Government also said that if necessary, it should be closed, rather than having to invest but still facing difficulties,” said Mr. Kien.

The responsibility for approving ineffective investment projects as above has been stipulated in the law, but with the events that have occurred, the responsibility often belongs to the collective. In Kien's opinion, current regulations stipulate that all decisions must be submitted for approval at a higher level. With such decentralization, whoever approves will be responsible.

Currently, the Ministry of Planning and Investment is assigning the task of developing a Decree to implement the Law on Management and Use of State Capital Invested in Production and Business Enterprises, which means establishing an agency to manage State capital in enterprises and separating the issue of owner representation from State management agencies./.

According to VOV