The National Assembly supports strong decentralization in public investment

DNHN - The National Assembly has approved a policy of decentralization in public investment management, demonstrating a commitment to economic development and creating opportunities for local governments to mobilize resources.

Decentralization in public investment involves delegating decision-making authority to local governments for planning, implementing, and managing investment projects. This enables localities to swiftly address and respond to practical needs, while fostering initiative and creativity in budgeting and resource allocation.

One of the most significant benefits of decentralization is the increased accountability of local governments. With delegated powers, local governments have a stronger incentive to execute projects effectively, as success or failure directly impacts their reputation and public standing. Additionally, this policy opens opportunities for local businesses to participate in investment processes, which in turn stimulates regional economic development.

To facilitate decentralization, the National Assembly has introduced several key policies to support localities. Increasing local autonomy in approving and implementing public investment projects is a crucial step, reducing complex administrative procedures and shortening project timelines, thereby improving investment efficiency.

The National Assembly's endorsement of decentralization in public investment management includes policies that encourage provincial and city governments to collaborate with businesses to attract private capital. This approach not only lessens the burden on the state budget but also creates opportunities for domestic and foreign businesses to engage in public investment projects.

Several localities have begun to implement the decentralized model in public investment, achieving positive outcomes. For instance, Bình Dương Province has launched numerous large-scale infrastructure projects with private sector involvement, generating a significant boost for local economic development. With delegated authority, provincial authorities have been proactive in attracting investment and accelerating project timelines.

Similarly, central provinces such as Thừa Thiên Huế and Quảng Nam have applied decentralization in managing tourism projects, facilitating the development of resorts and accommodations that draw millions of tourists annually.

Despite the many advantages of decentralization in public investment, challenges remain. A major issue is the management and administrative capacity at the local level. Not all localities possess the resources or experience to execute large-scale investment projects. Therefore, training and capacity-building for local management teams are essential.

Moreover, transparency in investment management must be emphasized. Decentralization could lead to power abuses or mismanagement without robust oversight mechanisms. The National Assembly and Government must establish clear criteria to evaluate project effectiveness and strengthen inspections to ensure transparency and accountability in investment management.

In the current context, public investment is no longer solely about infrastructure development but also about promoting sustainable growth. Localities need long-term strategies for planning and executing investment projects that balance economic development with environmental protection.

Green investment models and the application of modern technology in infrastructure projects should be encouraged. This not only improves residents’ quality of life but also conserves natural resources for future generations.

The National Assembly’s support for strong decentralization in public investment is a strategic step in Vietnam’s economic development. With new policies in place and the proactive efforts of local governments, public investment is expected to become a vital driver of sustainable national growth. Enhanced oversight and management mechanisms are also essential to ensure that investment projects are economically effective and socially responsible, benefiting the entire community.

Nhan Ha