The Hanoi People's Council on April 29 approved a resolution to update and adjust the city's public investment plan for 2021-2025 and the annual investment plan for 2025.

The resolution approves updates and adjustments to the 2021–2025 public investment plan, detailed in Annexes 1, 2, 2.1, 2.2, 3, 5, and 6. It allocates VND1.2 trillion (US$46.2 million) from the medium-term reserve fund for two key projects on construction, upgrading and expanding Linh Nam and Tam Trinh roads.

The resolution also approves adjustments to the 2025 annual public investment plan, detailed in Annexes 1, 2, 2.1, 2.2, 3, 4, and 5. It allocates VND14.3 billion ($550,800) for investment preparation of eight city-level projects planned for 2026-2030, and VND7.5 billion ($290,420) for one public security project. These funds are sourced from the flexible investment preparation budget.

The resolution authorizes the Hanoi People's Committee to allocate VND1 trillion ($38.5 million) from the 2023 revenue surplus to the 2025 investment plan, specifically for land compensation, support, and resettlement when the State reclaims land, if the current 2025 flexible compensation fund is fully used.

The resolution approves the city budget's support for one defense-related task/project and one security-related project, based on the People's Committee's proposal to adjust the 2025 public investment plan and update the 2021-2025 plan.

Presenting the appraisal report, the Economic and Budget Committee of the Hanoi People's Council agreed on the necessity of adjusting the five-year medium-term plan and the 2025 annual plan. They also agreed on the adjustment principles proposed by the People's Committee to ensure timely funding for key projects.

These adjustments aim to help the city achieve its economic growth target of 8% or more and fulfill political tasks for 2025 and the years ahead. Given that 2024 revenue surpluses remain unused, the committee supported using VND1.2 trillion ($46.2 million) from the medium-term reserve fund.

The committee agreed with three groups of principles, criteria, and priorities used to review and propose increases or decreases in project funding for this round of adjustments.

For projects proposed for reduced funding: 2025 is the final year of the 2021-2025 plan. The 2025 public investment plan was built based on tasks and allocated funds from the beginning of the year to ensure resources throughout the year.

The Hanoi People's Committee has issued many directives to speed up project implementation and disbursement. However, progress remains slow. As of April 20, disbursement via State Treasury Region I was only 8.7% of the 2025 plan.

Just over three months into the year, the Hanoi government has already proposed reducing funding for many projects. The economic and budget committee requested further evaluation of the accuracy and feasibility of the plan, the decisiveness of government levels in implementation, and the accountability of project owners.

The committee asked for more clarification on progress and feasibility through 2025 for projects with reduced funding, especially 11 projects with procedural obstacles related to dyke construction, and key projects that must be completed in 2025.

The committee especially requested a review of projects marked for completion in 2025 that are still seeing funding cuts, which may result in total funding by 2025 falling short of the required investment, affecting completion chances.

For projects proposed for increased funding: many have had their implementation extended and are expected to finish in 2025, but only 60-75% of their approved investment has been allocated.

For the criterion "New projects with approved decisions that meet funding conditions and need capital allocation to proceed," the municipal government has not clarified what qualifies as a "project needing capital allocation" or how priorities are set among new projects with completed investment procedures.

The economic and budget committee asked the Hanoi People's Committee to review and ensure that capital is allocated to projects in full compliance with legal regulations on investment and construction.

For example, the Technology Exchange Center at the multi-department complex on Vo Chi Cong Road began in 2012. Funding is now requested to continue the project.

The committee asked for more clarity on whether adjusting the investment decision and allocating more funding is legally appropriate, given that the facility was already accepted and put into use in 2020.