Resolution No. 26/2016/QH14 on the medium-term public investment plan for the 2016-2020 period

RESOLUTION
ON THE MID-TERM PUBLIC INVESTMENT PLAN FOR THE 2016-2020 PERIOD

OF THE NATIONAL ASSEMBLY

SOCIALIST REPUBLIC OF VIET NAM

On the basis of the Constitution of the Socialist Republic of Vietnam;

WHEREAS, the Law on Public Investment No. 49/2014/QH13;

WHEREAS, the State Budget Law No. 01/2002/QH11 and the State Budget Law No. 83/2015/QH13;

After considering the Government's Report No. 471/TTr-CP and the Government's Report No. 472/BC-CP dated October 19, 2016; the Financial-Budget Committee's Review Report No. 176/BC-UBTCNS14 dated October 19, 2016; the Standing Committee of the National Assembly's Report on Incorporating Opinions and Responses No. 50/BC-UBTVQH14 dated November 9, 2016; and the opinions of National Assembly deputies regarding the mid-term public investment plan for the 2016-2020 period,

RESOLUTION:

Article 1. Objectives and Orientation of Mid-Term Public Investment for the 2016-2020 Period

1. Objectives:

 To restructure and enhance the efficiency of public investment capital usage, attract maximum and effectively utilize various sources of development investment capital, complete the basic infrastructure system essential for economic and social development, serving the implementation of the five-year socio-economic development plan for 2016-2020 and the restructuring of the economy during the 2016-2020 period.

2. Orientation:

a) Focus on allocating capital to accelerate progress and complete national target programs, important national projects, key projects that are necessary and urgent, serving as a basis for promoting national economic and social development, with connectivity and spillover effects across regions; maximize and effectively utilize capital from other economic sectors. Do not allocate state budget development investment capital to areas or projects that can be invested by other economic sectors;

b) Prioritize state budget investment capital for mountainous, border, island, ethnic minority, remote, deep inland, disaster-prone, and particularly difficult socio-economic condition regions; support housing for households with meritorious service to the revolution; tasks related to climate change response, drought prevention and mitigation in the Central Highlands and South Central Coast provinces, saline intrusion in the Mekong Delta provinces, and marine environmental pollution incidents in four central provinces;

c) The use of state budget capital for investment in industries, fields, and programs during the 2016-2020 period must comply with the provisions of the Standing Committee of the National Assembly's Resolution No. 1023/NQ-UBTVQH13 on principles, criteria, and allocation standards for state budget development investment capital for the 2016-2020 period;

d) For proceeds from the sale of state-owned enterprise shares, prioritize investment in important projects that yield high socio-economic benefits.

Article 2. Total Mid-Term State Budget Investment Capital for the 2016-2020 Period

1. The total mid-term state budget investment capital for the 2016-2020 period shall not exceed 2,000,000 billion dong, including:

a) Central government budget capital is 1,120,000 billion dong, comprising foreign capital 300,000 billion dong, domestic capital 820,000 billion dong, including issuance of 260,000 billion dong in government bonds (including 60,000 billion dong in government bonds from the 2014-2016 period carried over), proceeds from the sale of state-owned enterprise shares is 250,000 billion dong;

b) Local government budget capital is 880,000 billion dong.

2. Reserve for mid-term state budget investment plan for the 2016-2020 period to address issues arising during the implementation of the mid-term investment plan according to the following levels:

a) General reserve at 10% of each source of capital;

b) Ministries, sectors, and localities set aside 10% of the total allocated capital according to the mid-term plan for each source of capital.

Article 3. National Target Programs and Key National Projects

1. Allocate VND 72,817 billion from the State budget for development investment during the period of 2016-2020 to implement two National Target Programs, including:

a) The National Target Program on New Rural Development with VND 43,119 billion;

b) The National Target Program on Sustainable Poverty Reduction with VND 29,698 billion.

2. Allocate VND 5,000 billion for land clearance work for the Long Thanh International Airport Project.

3. Allocate VND 80,000 billion for key national projects. The National Assembly will consider and decide on the investment policy and the level of public investment capital plan for each key national project during the period of 2016-2020 after the Government completes the necessary documentation and submits it to the National Assembly for approval according to the provisions of the Public Investment Law.

Article 4. Principles for Allocating the State Budget Capital Plan for the Period of 2016-2020

1. The allocation of capital must serve the implementation of the goals and orientations for development set out in the Socio-Economic Development Strategy for 2011-2020; the Socio-Economic Development Plan for 2016-2020 at the national, sectoral, and local levels, and approved economic and social development plans, sectoral plans, and regional plans.

2. The allocation of capital must comply with the provisions of the Public Investment Law, the State Budget Law, Resolution No. 1023/NQ-UBTVQH13 of the Standing Committee of the National Assembly on principles, criteria, and standards for allocating development investment capital from the State budget for the period of 2016-2020, and related documents.

3. Concentrate investment capital to address the issue of dispersion, ensure the effectiveness of the use of investment capital from the State budget; allocate sufficient counterpart funds for ODA projects. At the same time, take measures to mobilize other legitimate sources of capital to complete and accelerate the progress of the two National Target Programs, key national projects, important projects, urgent projects, target programs, serving as a basis for promoting strong socio-economic development nationwide, with connectivity and impact across regions. Localities allocated central government budget capital for the period of 2016-2020 must commit to allocating the remaining capital from their local budgets and other legitimate sources to complete the projects on schedule. In cases where the total investment amount of a project is adjusted upwards compared to the total investment amount already assigned in the medium-term investment plan by the competent authority, the locality must balance additional capital from other legitimate sources to complete the project on schedule and ensure quality. For foreign capital, the demand for borrowing and the ability to repay debts of ongoing projects and new projects must be calculated and balanced.

Article 5. Priority Order in Allocating the State Budget Capital for the Period of 2016-2020

1. For domestic capital excluding government bonds, the allocation of capital shall be carried out in the following priority order:

a) Allocate sufficient capital to settle outstanding construction debts; recover advance payments; do not allocate State budget capital to settle outstanding construction debts arising after December 31, 2014;

b) Allocate counterpart capital for projects using ODA and preferential loans from foreign donors; state investment in projects implemented under the PPP model;

c) Allocate capital for ongoing projects to be completed during the period of 2016-2020;

d) After allocating sufficient capital according to the above priorities, if there is still capital available, consider allocating it to newly initiated projects.

2. For government bond capital, the allocation of capital shall be carried out in the following priority order:

a) Allocate sufficient government bond capital to cover the shortfall in the total investment amount of important projects and works in the transportation and water resources sectors as specified in Appendix 3 of Resolution No. 726/NQ-UBTVQH13 of the Standing Committee of the National Assembly and the resettlement project for the Son La Hydropower Plant;

b) After allocating sufficient capital for these projects, consider allocating capital for truly urgent new projects in the health, transportation, and water resources sectors; the program to strengthen kindergartens and primary schools in ethnic minority areas, remote, and mountainous regions.

3. For foreign capital, allocate sufficient planned capital for projects that can be implemented and disbursed according to the central government's signed agreements for each project during the period of 2016-2020. The medium-term capital plan allocated for each project shall not exceed the amount of foreign capital approved by the competent authority.

Article 6. Measures to implement the medium-term public investment plan for the 2016-2020 period

1. Accelerate the restructuring of state budget expenditures towards more efficient and economical use, reducing recurrent spending to increase funding for development investments. Ministries, sectors, and localities must ensure savings in each project in accordance with government regulations.

2. Minimize the advance use of funds from the medium-term public investment plan. In cases where advance use is necessary, it must be strictly controlled to ensure compliance with the provisions of the Public Investment Law and the State Budget Law. The amount of advance funds for each project shall not exceed the allocated capital in the medium-term public investment plan and must ensure that there are sufficient sources to settle such advances.

3. Strictly manage the use of reserve funds in the medium-term public investment plan. Unallocated general reserve funds may only be used when state budget revenues are guaranteed according to the plan and for truly necessary, unavoidable, and urgent purposes as stipulated by the State Budget Law and the Public Investment Law, and must report to the National Assembly Standing Committee for consideration and decision before implementation.

4. Allocate state budget funds and enhance mobilization of investment resources for infrastructure projects through public-private partnership (PPP) models. Vigorously implement policies to socialize public services in healthcare, health care for the people, education and training, culture, sports, and infrastructure projects serving production and daily life in rural areas.

5. The head of the Government, central ministries and sectors, and local authorities shall be responsible under the law for deciding on investment policies, ensuring the quality of reports and proposals, reviewing, and approving investment policies and decisions to address inadequately prepared projects, non-compliance with legal requirements, scattered and ineffective investment policy decisions, inaccurate total investment estimates; only decide on investment policies for truly necessary projects after thorough review and clarification of their effectiveness, sources of funding, and financial capacity, ensuring that approved projects have adequate financial resources to implement.

6. Strengthen inspection, audit, supervision, and monitoring of discipline and order in public investment management; strictly control the objectives and efficiency of fund usage; ensure transparency in fundraising, management, and utilization of loans; impose strict penalties on individuals and entities violating public investment laws as decided by the National Assembly, the Government, and competent authorities.

Article 7. The Government is tasked with

1. Promptly completing the dossier and draft Resolution on investment policies for national key projects, submitting to the National Assembly for consideration and decision in accordance with the Public Investment Law.

2. Reviewing and promptly completing the Project List and specific funding allocations for each project, reporting to the National Assembly Standing Committee for comments before January 31, 2017, prior to detailing the medium-term public investment plan for the 2016-2020 period. Projects included in the list must meet all conditions stipulated by the Public Investment Law. Funding levels for each project must be appropriate to the ability to balance investment funds, strictly adhering to the goals, directions, principles, and priority order in allocating medium-term public investment funds for the 2016-2020 period.

3. Organizing the implementation and directing ministries, sectors, and localities to synchronously and resolutely implement measures to execute the medium-term public investment plan for the 2016-2020 period, organizing inspections and imposing strict penalties for violations.

Article 8. Implementation organization

1. The Government, central ministries and sectors, and localities shall implement this Resolution in accordance with their functions.

2. The National Assembly Standing Committee, the Finance-Budget Committee, the Ethnic Council, other committees of the National Assembly, the State Audit Office, National Assembly delegations, and National Assembly members shall supervise the implementation of this Resolution.

3. The Vietnam Fatherland Front Central Committee, member organizations of the Front, and social organizations established in accordance with the law shall supervise and encourage all strata of the population to implement this Resolution.

 This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the 14th term, second session, on November 10, 2016.