Mobilizing capital for basic construction investment: Efforts to overcome difficulties

(Baonghean) -The price of construction materials (VLXD) is always complicated, forcing investors to adjust their estimates, high credit interest rates affecting contractors' costs and the ability to mobilize capital, Resolution 11/CP on controlling inflation... are the reasons why many construction projects in our province cannot ensure progress. Faced with such difficulties, the province has focused on implementing solutions to ensure social security and attract capital in basic construction investment (XDCB).

Up to this point, the total investment capital in 2011 has basically reached the set plan of 24,581 billion VND. In the recent difficult economic situation, the capital mobilization to achieve such results is truly a great success, considered as one of the levers for socio-economic development of the province.

It can be seen that, in recent times, the "pressure" of investment capital has always weighed heavily on the shoulders of all levels and sectors of our province. Therefore, the province has issued solutions to direct, manage, improve the investment environment, mobilize capital sources... Thanks to the active and strong implementation of solutions and policies to attract investment, in the context of high inflation, the province still attracts many investment capital sources at home and abroad. Among the "flows" of investment capital into our province, foreign direct investment capital has achieved a quite impressive rate, which is an increase of 86.2% over the same period last year; investment capital of enterprises implemented 5,200 billion VND, an increase of 30.3%; non-governmental (NGO) projects increased by 25%; State development investment credit capital increased by 20.1%; construction capital from the State budget increased by 18.67%; Investment capital through central ministries and branches also increased by 13.28%...

Recently, with the successful organization of the Investment Promotion Conference in the North Central provinces, Nghe An is becoming an attractive destination for investors and since the beginning of 2011, it has granted Investment Certificates to 74 newly registered projects, with a total registered capital of more than 18,000 billion VND. Also during the past time, many projects have started construction such as: Hoang Mai unburnt brick factory, Nam Dan textile cluster, VNF1 high-end apartment and condominium complex; Cua Lo deep-water port... Many projects have ensured progress and are gradually being exploited effectively such as: TH Dairy Cow Farming Project; Tan Thang Cement...

Implementing Resolution 11/CP, Nghe An province has focused capital on completed projects, important and urgent projects, limited new projects and gradually overcome the situation of scattered investment. By the end of March 2011, all capital sources were allocated in detail, ensuring the right time. The list of projects was arranged in accordance with the Central regulations on structure and objects.

With the timely direction of the province, the state budget investment capital concentrated through the province was implemented on schedule and achieved high efficiency. Investors and contractors took advantage of the opportunity to complete the documents to start construction early. The projects under this "flow" of capital were mainly invested in transitional construction projects and new projects bid before February 24, 2011 (after the issuance of Resolution 11/CP, all new projects were temporarily suspended). By August 2011, the province had just disbursed 163 projects related to flood and storm recovery, Program 30a and national security and defense, thus "unblocking" the disbursement. From the beginning of 2011 to now, the investment capital through the provincial budget has achieved 2,787 billion VND in implementation volume and 2,439 billion VND in disbursement. From this capital source, the projects: Dien Thap Industrial Park (Dien Chau), Road 205, Road 33, Yen Thanh cassava raw material area road... are implemented on schedule. And thanks to the capital source of the Government's Investment Program, traffic projects including: Eo Len from Nghia Hoan commune to Nghia Phuc (Tan Ky), Quynh Phuong - Quynh Bang tourist road (Quynh Luu), Bai Xa traffic road to Tung Huong... have been implemented in large volumes in project construction. In addition, local capital sources allocated to districts, capital from national target programs, foreign capital... are also disbursed promptly and at a high rate.

In 2012, it is forecasted that investment capital will face difficulties because, in addition to implementing Resolution 11/CP, Directive 1792 on strengthening the management of investment capital from the State budget and Government bonds will continue to be implemented. Such "tightening" of investment requires appropriate solutions in mobilizing resources for investment to ensure the socio-economic development requirements of the province.

Hoang Vinh