National Assembly discusses the Draft Law on Public Investment (amended)

On the morning of May 28, continuing the 7th Session of the 14th National Assembly, under the direction of Vice Chairman of the National Assembly Phung Quoc Hien, the National Assembly discussed in the hall the Draft Law on Public Investment (amended).

Overview of the meeting. Photo: Quochoi.vn

Proposal to maintain current regulations on criteria for classifying important national projects

At the discussion session, the National Assembly deputies basically agreed with many contents in the Report on explanation, acceptance and revision of the Draft Law on Public Investment (amended). In order to resolve difficulties and problems in practice, and at the same time ensure consistency between the Law on Public Investment and the Law on State Budget, the Law on Public Debt Management, the Law on Environmental Protection, and the Law on Land, many deputies agreed with the Government's proposal to expand the scope of amendments to the Law on Public Investment and name it the Law on Public Investment (amended).

Accordingly, the draft Law absorbs and adjusts in the direction of strengthening administrative procedure reform, promoting decentralization and creating initiative for ministries, central and local agencies; amending regulations on the authority to decide on investment policies for public investment programs and projects; amending regulations on capital appraisal and capital balancing capacity for projects using central budget capital, ODA capital and preferential loans from foreign donors.

At the 6th session, the National Assembly discussed in groups and in the hall the Draft Law on amending and supplementing a number of articles of the Law on Public Investment. Based on the synthesis of the discussion opinions of the National Assembly deputies, the National Assembly Standing Committee directed the Finance and Budget Committee, the Government and relevant agencies to study, absorb the opinions of the National Assembly deputies and revise and complete the draft Law.

The draft Law on Public Investment (amended) consists of 6 chapters and 101 articles regulating State management of public investment; management and use of public investment capital; rights, obligations and responsibilities of agencies, units, organizations and individuals related to public investment activities. This Law replaces the Law on Public Investment No. 49/2014/QH13.

Innovate regulations on management of capital sources left for investment but not yet included in the budget balance; innovate in the work of establishing, appraising, approving investment policies, investment decisions, and project adjustments; establish, appraise, approve and assign Plans, adjust medium-term and annual public investment plans suitable to each type of capital source, improve the efficiency of public investment activities...

Giving opinions at the discussion session on criteria for classifying important national projects, National Assembly deputies basically agreed to keep the provisions as in the current Law on Public Investment as the viewpoint of the National Assembly Standing Committee.

Accordingly, the regulation on adjusting the criteria for classifying public investment projects is implemented in case of large fluctuations in the price index or major adjustments in public investment decentralization... However, in reality, over the past time, the decentralization of public investment has been basically stable; The criteria for classifying important national projects with a capital level of 10 trillion VND and project classification levels A, B, C as currently regulated do not arise any problems; on the contrary, if adjusted as proposed by the Government, it will cause major disruptions in the shift in project classification and management.

National Assembly Delegate Hoang Quang Ham - National Assembly Delegation of Phu Tho province emphasized that in the 13th and 14th National Assembly terms, there were only 2 important national projects submitted to the National Assembly. For a developing country, having only 2 important projects in a year is too little.

Delegates said that if the criteria for classifying important national projects are adjusted from VND10,000 billion to VND20,000 billion, and the capital for projects A, B, and C is increased to twice the current level, there may be no more projects submitted to the National Assembly.

Meanwhile, the National Assembly has a role in deciding important issues of the country, and now it is unreasonable for the National Assembly to not be able to decide on any important projects.
Therefore, to ensure the stability of the legal system and to be consistent with reality, delegates proposed to maintain the provisions of the current Law on criteria for classifying important national projects and classifying projects A, B, C.

National Assembly decides on medium-term public investment plan

Regarding the authority to review and decide on the list of medium-term public investment plan projects, many National Assembly deputies expressed support for option 1 and the arguments of the National Assembly Standing Committee.

Accordingly, the National Assembly decides on the Medium-Term Public Investment Plan including total investment, criteria, list and capital allocation for each investment project from the Central budget in accordance with the spirit of the Constitution.

According to National Assembly delegate Le Thanh Van - National Assembly delegation of Ca Mau province, the regulation as in option 1 is consistent with the Constitution and functions and tasks of the National Assembly.

Specifically, the Constitution affirms three basic functions of the National Assembly, including the function of deciding important national issues and exercising supreme supervision.

Article 70 of the Constitution also clearly stipulates the task of the National Assembly, which is to plan the socio-economic development strategy and the socio-economic development tasks of the country. The medium-term public investment plan is one of the important tasks of the National Assembly.

Besides, the list of medium-term public investment plan projects is a central, core part that determines the medium-term public investment plan.

This is an important issue of the country related to the allocation of a very large total state budget resource for the whole 5 years; it has a direct impact on economic growth and social stability, public debt safety, and national financial security. Therefore, this content needs to be considered and decided by the National Assembly.

National Assembly delegates discuss at the meeting. Photo: Quochoi.vn

Through discussion, delegates said that the regulation that the National Assembly considers and decides on the list is to ensure full expression of the spirit of the Constitution on the role of the National Assembly in deciding on the budget; ensuring consistency between legal documents (current State Budget Law, Public Investment Law).

Resolution No. 05/NQ-TW dated November 1, 2016 of the 4th Conference of the Party Central Committee proposed a policy to restructure public investment, accordingly, it is necessary to restructure public investment in conjunction with financial restructuring; linking the medium-term public investment plan with the medium-term financial plan and the plan for borrowing and repaying public debt.

The National Assembly decides on the 5-year financial plan and the Medium-term Public Investment Plan is an inseparable part of the 5-year financial plan. In addition, submitting to the National Assembly for decision the list and specific capital level for each project ensures publicity, transparency, and democracy in considering and deciding on issues related to the state budget.

However, because the National Assembly meets twice a year, while completing the list and allocating medium-term capital is often difficult to complete in one session and during the implementation process, cases that need to be adjusted may arise, so the delegates proposed to adjust the draft Law in the direction: The National Assembly decides on the medium-term public investment plan, including the total capital, list, capital level of public investment programs and projects and capital level for planning tasks and investment preparation under the central budget.

If necessary, based on the practical situation, the National Assembly may assign the National Assembly Standing Committee to review, decide, and adjust the list and capital level of each public investment program and project under the central budget in the medium-term public investment plan as implemented in the 2016-2020 period and report to the National Assembly at the nearest session.

Delegates said that such regulations both ensure the role and responsibility of elected bodies and ensure flexibility and timeliness in organizing the implementation of the Medium-Term Public Investment Plan; at the same time, they aim to legalize and ensure consistency with Resolution No. 26/2016/QH14 and Resolution No. 71/2018/QH14 of the National Assembly.

In addition, the contents on the tasks and powers of the Standing Committee of the People's Council; the organization and management of public investment capital; conditions for deciding on investment policies... were also discussed by National Assembly deputies.

Speaking at the end of the session, Vice Chairman of the National Assembly Phung Quoc Hien stated that, based on the comments of the National Assembly deputies today, the National Assembly Standing Committee will seriously absorb and explain the contents that the deputies still have concerns about at the session; at the same time, direct the National Assembly's Finance and Budget Committee and the drafting agency to continue perfecting the contents of the draft Law before submitting it to the National Assembly for approval.