On March 5, Party Central Committee member, Vice Secretary of the Hanoi Party Committee and Chairman of the Hanoi People's Committee Vu Dai Thang chaired a conference reviewing public investment activities.

The conference was held in a hybrid format, combining in-person and online participation with commune and ward authorities.

Also attending were member of the Hanoi Party Standing Committee and Vice Chairman of the Hanoi People's Committee Nguyen Xuan Luu, along with leaders from city departments and agencies.

Nearly $380.3 million disbursed, higher than national average

Reporting at the conference, Director of the Hanoi Department of Finance Nguyen Ngoc Tu said the central government allocated nearly VND126 trillion (US$4.8 billion) in public investment capital for Hanoi in 2026.

This includes more than VND1.2 trillion ($45.6 million) in on-lent ODA funds, nearly VND3.9 trillion ($148.3 million) from the central budget and the majority from the city budget.

Based on this allocation, Hanoi assigned a total public investment plan exceeding VND156 trillion ($5.9 billion) for 2026, significantly higher than the initial plan.

Of this total, the city budget accounts for more than VND148.7 trillion ($5.6 billion), ODA funds exceed VND3.3 trillion ($126.3 million) and the remainder comes from the central budget.

As of February 28, Hanoi had disbursed VND9.5 trillion ($362.7 million), equivalent to 7.57% of the plan assigned by the Prime Minister.

By March 4, the figure rose to nearly VND10 trillion ($380.3 million), reaching 7.92% of the Prime Minister's plan and about 6.39% of the updated city plan.

Tu noted that Hanoi's disbursement rate exceeded the national average of 5.6%, although it achieved only about 48.6% of the city's targeted schedule for the early part of the year.

In the disbursement structure, locally balanced budget funds accounted for the largest share with more than VND9.1 trillion ($349 million), followed by ODA funds at more than VND367 billion ($14 million) and central budget funds at over VND19 billion ($722,700).

Major city projects are also being actively implemented.

Among nine key projects, including Van Phuc Bridge, Tu Lien Bridge, Tran Hung Dao Bridge, Thuong Cat Bridge and the Ring Road 1 section from Hoang Cau to Voi Phuc, total allocated capital for 2026 is VND9.5 trillion ($362.3 million).

By March 4, these projects had disbursed VND1.58 trillion ($60.2 million), equivalent to 16.63% of the planned amount.

The group of 11 urgent projects also showed relatively positive progress. With more than VND8.2 trillion ($313.4 million) allocated, these projects disbursed VND1.7 trillion ($66 million), achieving 21.1% of the plan.

Meanwhile, projects using ODA funds and urban railway investments have a combined capital plan of VND19.3 trillion ($734.7 million) in 2026, but disbursement reached only 2.57%, mainly due to delays related to loan agreements and contractor contracts.

According to the Finance Department director, Hanoi's public investment scale in 2026 is extremely large, with the total capital plan reaching VND156 trillion ($5.9 billion), about 1.5 times higher than in 2025.

This enormous volume places significant pressure on project implementation and disbursement progress.

"To achieve the city's GRDP growth target of 11% in 2026, Hanoi aims to complete 100% of the public investment plan before September 30, 2026. This is a demanding task requiring stronger determination from investors and local authorities," Tu said.

Under the plan, Hanoi must disburse about VND32.7 trillion ($1.2 billion) in the first quarter of 2026, equivalent to 26% of the annual plan.

With expected disbursement by the end of February still below VND10 trillion ($380.3 million), the city must disburse an additional VND23 trillion ($875.6 million) in March alone to meet the quarterly target.

To achieve this goal, the Hanoi Department of Finance recommended that project investors focus on removing bottlenecks affecting disbursement progress.

Land clearance remains the largest obstacle for many key projects such as Tu Lien Bridge, Ngoc Hoi Bridge, Tran Hung Dao Bridge and Thuong Cat Bridge. In addition, limited resettlement land funds, difficulties in determining land origins and changes in compensation policies have complicated project implementation.

"Investors must immediately resolve issues related to land clearance, investment procedures and contractor selection while accelerating payments for completed work to ensure disbursement progress," Tu emphasized.

Strengthening responsibility in public investment disbursement

After hearing opinions from departments, agencies, communes and wards, Vice Chairman of the Hanoi People's Committee Nguyen Xuan Luu said the city currently possesses significant public investment resources, which represent a major opportunity for infrastructure development.

If these funds are not disbursed effectively, it would be regrettable, he said, emphasizing that city leaders have repeatedly affirmed public investment as the driving force behind the capital's development.

Public investment disbursement is particularly important because these projects create foundational infrastructure that attracts additional private capital to support development.

Luu urged project investors, management boards and chairpersons of commune and ward People's Committees to clearly recognize their responsibility for implementing and disbursing allocated funds.

Failure to meet disbursement schedules would directly affect the city's overall development.

One key point emphasized by the vice chairman was the flexible mechanism introduced under the revised Capital Law.

Under this mechanism approved by the Government, Hanoi will have greater flexibility in disbursing public investment funds. Previously, flexibility mainly applied to three areas: project preparation, land clearance and project settlement.

However, under the revised Capital Law, projects included in the city's public investment list approved by the People's Council and People's Committee can be disbursed up to the total investment level and contract package value.

He urged agencies to understand this mechanism clearly and handle procedures decisively while complying with legal regulations.

Luu also stressed that under the flexible mechanism, units failing to disburse funds on schedule could have their capital reallocated to units capable of implementing projects more effectively.

"In addition, the city is focusing on resolving delayed projects. During March 2026, each project will be reviewed to identify causes of delays and determine appropriate solutions," he said.

"For projects funded by the state budget, investors must clarify responsibility and reasons for delays to implement corrective measures. For non-budget projects, the city has assigned relevant departments, particularly the Hanoi departments of Finance and Agriculture and Environment, to focus on resolving related obstacles," he added.

Prioritizing project implementation to maximize resource efficiency

Concluding the conference, Chairman of the Hanoi People's Committee Vu Dai Thang stressed the need for tight and effective implementation of public investment disbursement.

He said projects approved by the city's People's Committee, People's Council and related agencies should be prioritized for implementation to ensure optimal use of resources.

The city has accumulated considerable experience in public investment disbursement since the fourth quarter of 2025. However, data from the first two months of 2026 show that current disbursement progress remains slower than required.

According to Thang, both objective and subjective factors contribute to the situation.

Some projects were temporarily suspended for review due to overlap with larger projects, while others are awaiting appraisal by higher-level authorities. In addition, early in the year the city focused on disbursing the remaining 2025 capital plan for ongoing projects.

He noted that land clearance remains one of the most significant challenges.

Although positive progress has been achieved, many projects still face difficulties in this stage. Other obstacles involve construction materials, administrative procedures and technical standards.

Thang emphasized that the city has entered the third month of 2026, with the first quarter identified as the acceleration phase for public investment disbursement.

Hanoi aims to disburse at least 20% of the annual capital plan during this quarter, meaning departments, agencies, localities and investors must intensify efforts throughout March.

The chairman also highlighted another issue related to the allocation of public investment capital.

According to the Hanoi Department of Finance report, nearly 30% of public investment funds allocated to commune and ward levels have not yet been distributed.

Since the city has strongly decentralized authority to local governments, communes and wards must proactively exercise their responsibilities and powers.

He stressed that capital allocation must follow the principle of "six clear elements": clear responsibilities, clear tasks, clear accountability, clear timelines, clear results and clear inspection and supervision mechanisms.

In particular, leaders of localities and departments must bear direct responsibility.

At the same time, departments and agencies should actively remove administrative obstacles to avoid delays affecting project progress.

Regarding land clearance, he urged local authorities to build on successful experiences and flexibly apply compensation and support policies, which have already received strong public support.

Thang also asked departments to quickly finalize standards, norms and price frameworks for new sectors, especially projects involving smart urban development and technological infrastructure.

Currently, Hanoi has more than 330 public investment projects with extremely large capital allocations.

Therefore, the city will review and classify projects to determine which should continue, which need schedule adjustments and which should receive priority funding due to urgency.

For ODA projects, Hanoi will also consider more proactive approaches consistent with its financial and technical capacity.

The chairman also requested that departments, agencies and local authorities continue close coordination to remove obstacles, accelerate public investment disbursement and prepare effectively for upcoming key tasks of the city.