Planning and Investment Minister conserves with citizens

Minister of Planning and Investment Bùi Quang Vinh

The emerging issues include the efficiency of public investment, relations between public and private investments, benefits of economic zones, and public investment management decentralization among others.

Regarding the efficiency of public investment and the relations between public and private investments, the Minister said that the State economic sector held a dominant role in the national economy before the country launched the renovation policy. Then, the private sector has grown quickly, making increasingly significant contributions in terms of output and employment.

In recent years, public investment has reduced amid rising private investment. In 2001-2005, the State investment accounted for 53.4% of the total investment capital while the private sector held 32.6%. However, in the 2011-2015 period, public investment is expected to fall down to 37- 39% and private investment is projected to increase to 45- 46%.

Under the spirit of the Resolution adopted at the 3^rd Plenum of the 11^th Party Central Committee, the cornerstone of the economic restructuring plan is public investment, meaning which areas that can be effectively funded by the private sector will be transferred to the private sector.

In coming years, the State plans to mobilize capital from other economic sectors, including foreign investment for infrastructure projects.

In the area of production and business, the State will focus on services development, national defense and security, development in remote and disadvantage regions through coordination with the private sector through public-private partnership model.

Minister Vinh, however, said that the private sector’s resources are still limited, therefore its involvement in the areas, which the State wants to socialize, may not be seen as expected.

For a question on the contributions made by economic zones and industrial parks, Minister Vinh said these entities have occupied an important position in Việt Nam’s economic structure.

By the end of 2011, the country has 283 industrial parks along with 15 coastal economic zones and 28 border economic zones.

The central Government has reviewed 20 year development of industrial parks and economic ones across the country.

Minister Vinh revealed that his ministry has proposed the Government to sort out five coastal economic zones for receiving focused investment.

Regarding the decentralization of public investment management, the chief of the Ministry of Planning and Investment said the State has sped up decentralization over the past time in order to make ministries, agencies and localities more active. However, it has also resulted in scattered and waste investments. This year, the Government will correct the situation.

The Government will assign a list of projects to the Ministry of Planning and Investment.

He said that it is time for the ministry to change from developing annual plans to medium-term plans (from 3-5 years).

By Hải Minh