Since Monday, 11 teams of the Ministry of Planning and Investment have been in consultation with provinces and economic groups to implement the government’s policy on tightening of public investments.
|Nguyen Van Linh Boulevard built by Taiwanese Join -Venture Company Phu My Hung is the arterial route in HCMC (Photo: SGGP)|
According to Cao Viet Sinh, deputy Minister of Planning and Investment, public investment reduction has been clearly determined.
Specifically, projects that have not yet received a license will not be permitted to break ground. Those that will take a longer time to build will face a complete halt in work so as to concentrate the capital expense on projects nearing completion in 2011 and 2012.
Investors will not be permitted to advance any capital until the following year. Under earlier regulations, they could advance 30 percent of the capital for the next year. Additionally, capital which is not used up will not be transferred to the following year.
It is predicted that the capital volume this year will greatly reduce, requiring investors to rearrange and restructure their projects.