PM Dung calls for action to speed up capital disbursements

11:40' 11/06/2007 (GMT+7)

VietNamNet Bridge – Prime Minister Dan said yesterday he appreciated the country's efforts in reaching a gross domestic product growth rate of 8% during the first five months of the year. Construction on the Dung Quat Oil Refinery Plant is being sped up to ensure it is operational by February 2009. But Dung said many projects were progressing slowly because of shortcomings in management, especially complicated administrative procedures that have hindered investors. He presided over a conference to review the implementation of investment plans during the first half of the year and ways to implement plans for the last six months. Cumbersome mechanisms, disparate guidelines from ministries and regional governments, weak consultation regimes and slow site clearance all hampered investment, he said. The PM asked ministries and business leaders to find solutions to construction delays, especially for key projects. He asked the Ministry of Finance to review capital sources, State bonds and development aid to assure money for construction. He also asked the Ministry of Planning and Investment to work out mechanisms for investors and strengthen its management of basic construction projects. According to the ministry, total social spending in the first six months of this year rose to VND195tril, accounting for 43% of yearly targets and 38.4% of GDP. Of this figure, the State budget accounted for VND42.4tril and capital from credit sources was VND10.3tril. Record investment Vietnam posted a record, US$5.2bil in foreign investment during the first five months of this year, according to the Government's website. The country also recorded a growth rate of more than 30% in fields like capital investment, exports and tax collection. According to economists, the Government's decision to open 'sensitive' sectors, including seafood, garments and electronics import and export, to foreign investors helped drive the boom. More than 400 foreign investment projects have been licensed in the first half of this year, including several in poorer regions such as Thai Nguyen, Ha Giang, Cao Bang and Son La. During the first five months of 2007, foreigners also invested $2.1bil to build workshops and equip new facilities, an increase of 30% compared to the same period of last year. The Ministry of Planning and Investment is to ask the Prime Minister to issue an instruction on attracting foreign investment and issue a call for domestic investment capital for 2006-10. Oil and gas deadlines Dung has urged Technip, the general contractor of the Dung Quat Oil Refinery plant, to do everything possible to ensure the plant starts operation in February, 2009. The PM also instructed various ministries, agencies and contractors to implement various projects and ensure that the country's key oil and gas projects finish on time in Government Office Official Letter, No 2999/VNCP-DK. Technip needs to co-ordinate with the project management consultants to monitor closely the manufacture and installation of equipment for the oil refinery plant in accordance with the required standards, including the country of origin of the equipment. They should provide the design blueprints to the Vietnamese sub-contractors as soon as possible, so they can keep up with their deadlines. The winning contractors of packages 5A and 5B must discuss and co-ordinate their projects so that construction is completed with minimum inflation to their approved budget. The COMA contractor are to organise the bid for Engineering Procurement Construction Contract (EPC) No 7 as soon as possible, procure the necessary equipment as well as complete its contracts. Vietsovpetro contractor must complete the equipment installation as soon as possible at Ca Mau gas fired electricity and fertiliser project, so that it will begin generating electricity from December 2007. Finally the Prime Minister asked the Ministry of Labour, Invalids and Social Affairs to consider and approve a proposal to grant bonuses, equivalent to half a month salary, to employees working at the Dung Quat Oil Refinery Plant. (Source: Viet Nam News)