HÀ NỘI — Việt Nam’s public investment spending is accelerating sharply, cementing its role as a critical growth engine as global trade and economic uncertainty undercut traditional drivers.

​Disbursement reached VNĐ227.2 trillion (US$8.73 billion) as of June 4, equal to 22.4 per cent of the Prime Minister’s annual plan, the Ministry of Finance said. That was up from VNĐ198.4 trillion a week earlier, meaning more than VNĐ28.8 trillion was disbursed in the May 29–June 4 period alone, about 1.8 times the prior week’s pace.

​The Government has allocated VNĐ1.01 quadrillion in state investment for this year, including VNĐ363.2 trillion from central coffers and VNĐ650.2 trillion from local ones. An additional VNĐ18.1 trillion in central budget investment has subsequently been approved, while local authorities have topped up their own balanced-budget investment allocations by VNĐ13.3 trillion beyond what the PM originally assigned.

​Speaking at a discussion as part of the Vietnam Investment Forum 2026 - Summer Summit, experts said disbursement hit 21.6 per cent of the annual plan as of May 31. The amount of disbursed capital jumped by more than VNĐ34.8 trillion, an 18.9 per cent increase from the plan.

​With traditional growth engines facing high global interest rates, exchange rate volatility, rising oil prices and an increasingly unpredictable trade landscape, public investment is emerging as a more reliable source of economic stability and a key cushion against external shocks.

Việt Nam has set a target of fully disbursing its public investment budget this year, a goal lawmakers and analysts said will be tough to achieve.

​Phan Đức Hiếu, a standing member of the National Assembly’s Committee for Economic and Financial Affairs, said delays vary widely from project to project, making one-size-fits-all policy prescriptions far less effective.

​He argued that authorities should zero in on clearing individual bottlenecks rather than adopting uniform solutions nationwide. Given the scale of spending, delays in land preparation, project adjustments, material supplies or payment procedures can have an outsized drag on overall disbursement.

​The most frequently cited obstacles are shortages of fill materials and construction inputs, along with rising material costs.

​According to him, some provinces have been granted special mechanisms that let them accelerate licensing and access to construction materials. Extending those flexibilities nationwide could help quicken project timelines and capital spending.

​Another headwind is cost inflation for construction and equipment. Contractors are increasingly seeking revisions to project budgets and investment estimates as input prices rise. Investors have called for greater state support in sharing cost increases, particularly for fixed-price and lump-sum contracts, while pushing for more frequent adjustments to pricing mechanisms that reflect market conditions.

​Nguyễn Xuân Thành, a senior lecturer at the Fulbright School of Public Policy and Management, said this year’s performance should be seen alongside 2025, when Việt Nam also targeted 100 per cent disbursement. The country missed that mark within the calendar year, but the rate ultimately climbed to 98 per cent after accounting for the extended budget settlement period, a record high.

​Achieving full disbursement this year will be challenging given an unprecedented investment plan exceeding VNĐ1 quadrillion. Even so, a 95 per cent rate would still deliver a substantial fiscal jolt to the economy, he said.

​He added that a 95 per cent outcome is within reach because many large projects have entered their final stages, reducing land acquisition risks and shifting the focus toward equipment installation and completion.

​The main challenge now is managing cost overruns as contractors seek adjustments to account for rising prices of construction materials, machinery and equipment. Greater flexibility across ministries, agencies and local authorities will be critical to enable timely budget reallocations and investment plan revisions without getting tangled in lengthy approval processes.

​Analysts also pressed for stricter enforcement of capital reallocation rules, under which funding is stripped from delayed projects and redirected to those that can deploy it faster.

​If executed effectively, public investment is poised to remain one of Việt Nam’s most stable and predictable growth drivers in an increasingly uncertain global environment, helping underpin economic expansion through the rest of the year. — VNA/VNS