Hanoi accelerates public investment disbursement as driver for double digit economic growth

Delegates attend the national conference at the Hanoi People's Committee building.

On April 24, at the national conference on accelerating allocation and disbursement of public investment capital in 2026, Party Central Committee Member, Vice Secretary of the Hanoi Party Committee and Chairman of the Hanoi People's Committee Vu Dai Thang delivered remarks at the Hanoi People's Committee site.

Hanoi has disbursed about $1.17 billion

Chairman of the Hanoi People's Committee Vu Dai Thang stated that 2026 is the first year of implementing the new five-year socio-economic development plan.

It is also a particularly important year for creating growth space, completing strategic infrastructure, expanding development areas and preparing the foundation for new growth drivers.

For Hanoi, the scale of public investment capital in 2026 is very large. The capital plan assigned by the Prime Minister is approximately VND126 trillion ($4.78 billion). To date, the city has allocated about VND156 trillion ($5.9 billion).

With such a large capital scale, the requirement for Hanoi is not only fast disbursement, but more importantly, focused allocation, effective implementation, ensured construction quality, investment efficiency and direct contribution to the city's GRDP growth.

Chairman of the Hanoi People's Committee Vu Dai Thang speaks at the meeting.

Thang emphasized that, recognizing this, from the beginning of the year the city has closely followed the directives of the Government and the Prime Minister.

Accordingly, the city has decisively directed capital allocation, management and progress monitoring for each project, each investor and each locality, using disbursement results as a key criterion to evaluate task performance of agencies, units and leaders.

As of April 23, cumulative disbursement of public investment capital reached about VND31 trillion ($1.17 billion), equivalent to around 25.7% of the plan assigned by the Prime Minister, excluding the reserve portion allocated for the Lao Cai-Hanoi-Haiphong railway project.

This result is higher than the national average of 12.6% recorded by the Ministry of Finance as of April 15.

Along with disbursement results, several key projects in the city are being accelerated.

Site clearance for major transportation projects has shown clear progress. The Ring Road 4 project in the Capital Region has basically completed site clearance and all resettlement areas have been constructed.

At the same time, site clearance for several bridges across the Red River, ring roads and connecting routes is being strongly directed by the city.

These results not only promote public investment disbursement, but also create conditions to mobilize social resources, expand development space and enhance the regional connectivity capacity of the Capital.

However, alongside the achievements, Hanoi acknowledged remaining challenges related to site clearance, supply of construction materials, fluctuations in material and fuel prices and construction costs, which are directly affecting project progress.

Issues related to lump sum contracts and fixed unit price contracts also remain a concern.

Institutional reforms to accelerate public investment disbursement

From this reality, Chairman of the Hanoi People's Committee Vu Dai Thang stated that resolving institutional bottlenecks is the decisive factor, not just urging implementation.

In this context, the National Assembly's approval of the revised Capital Law on April 23, effective from July 1, 2026, marks an important milestone for Hanoi.

Based on this, Thang said Hanoi will focus on several key tasks and solutions in the coming period.

Chairman Vu Dai Thang inspects the progress of the construction of Tran Hung Dao bridge in early April 2026.

First, the city will continue to follow the direction of the Government and the Prime Minister, manage public investment capital decisively, flexibly and effectively, regularly review project progress and promptly reallocate capital from slow projects to those with better disbursement capacity to ensure proper use and maximum efficiency.

Second, Hanoi will prioritize site clearance as a core and ongoing task, mobilizing the entire political system from the city to the grassroots levels and strengthening communication, dialogue and public engagement.

The city will proactively resolve difficulties related to resettlement, land origin identification, compensation pricing and relocation of technical infrastructure, striving to provide cleared land for key projects on schedule.

Third, the city will accelerate completion of investment, construction, land and environmental procedures, continue strong administrative reform in public investment, shorten processing time, enhance digitalization, integrate data, monitor progress in real time and improve coordination among departments, localities and investors.

Fourth, Hanoi will closely monitor fluctuations in construction material, labor and fuel prices, promptly update and publish price indices and proactively ensure material supply to minimize negative impacts on project progress.

Fifth, the city will continue to tighten discipline and accountability, emphasizing the responsibility of leaders and require investors, project management boards and contractors to develop detailed weekly and monthly plans.

In addition, Hanoi will adhere to the principle of "six clarities": clear responsibilities, tasks, accountability, authority, timeline and results, using outcomes as the basis for evaluating officials, agencies and units.

Sixth, the city will proactively prepare conditions to effectively implement new mechanisms and policies under the revised Capital Law immediately after it takes effect, ensuring proper authority, compliance and objectives, thereby creating additional space to resolve difficulties in public investment projects.

At the conference, Chairman of the Hanoi People's Committee Vu Dai Thang proposed that the Government, the Prime Minister and central ministries and agencies continue to provide guidance and support for localities in implementing the 2026 public investment plan.

In particular, Hanoi requested early resolution of issues related to lump sum contracts and fixed unit price contracts in the process of amending Decree No. 37/2015/ND-CP, allowing appropriate handling mechanisms for projects delayed due to objective factors such as major fluctuations in material prices or prolonged site clearance.

The city also proposed that ministries and agencies continue to support and guide capital allocation, accounting and management mechanisms and pay attention to strategic infrastructure projects, especially urban railways and regional connectivity projects, to enable Hanoi to better fulfill its role as a growth pole and development engine for the Capital Region and the country.

"Hanoi clearly recognizes that public investment disbursement is not only a financial and budgetary task, but also an important political task. It is a tool to drive growth, complete infrastructure, create jobs, lead social investment and expand new development space for the Capital," Thang emphasized.