Vietnam Calls for Faster Implementation of Key Industry, Trade and Construction Projects

Hanoi, The Gulf Observer: Deputy Prime Minister Phạm Gia Túc has called for accelerated implementation of major projects in Vietnam’s industry, trade and construction sectors while emphasizing that faster completion must not come at the expense of quality, safety and efficiency.

Speaking at the first meeting of the Steering Committee for key projects in the industry, trade and construction sectors on October 1, Túc said the projects were important for promoting economic growth, expanding production, strengthening infrastructure capacity, ensuring energy security and enhancing the competitiveness of the national economy.

He said the industry, trade and construction sectors would play a critical role in achieving Vietnam’s target of double-digit economic growth in 2026 and subsequent years.

The Steering Committee was established to strengthen coordination among sectors, remove obstacles and ensure that key projects are implemented on schedule while maintaining quality, safety and efficiency and preventing losses and waste.

Túc called for greater application of information technology in monitoring and updating project progress. He said a dedicated system should be gradually developed to track and supervise key projects, providing complete, accurate and timely information, identifying projects at risk of delays in implementation or disbursement, and enabling authorities to address emerging difficulties promptly.

Regarding construction material supplies, the Deputy Prime Minister said Vietnam as a whole was not facing a shortage, although localized shortages had occurred in some areas and at several major projects.

He said he was scheduled to sign a decision on October 1 to coordinate construction material supplies nationwide and balance supply and demand. He also asked the Ministries of Construction, Industry and Trade, and Finance to compile difficulties, obstacles and commitments concerning project disbursement progress for inclusion in the resolution of the Government’s September 2026 meeting.

The ministries were further instructed to review key projects experiencing delays for follow-up, inspection and supervision, while assessing the fulfillment of key performance indicators by heads of relevant agencies.

Projects facing delays

According to a report presented by Deputy Minister of Construction Bùi Xuân Dũng, the construction sector currently has 55 projects and 124 sub-projects under monitoring and supervision.

While many projects have been completed and put into operation or are under construction, a number remain behind schedule.

Of 61 projects and sub-projects under construction, 19 are behind schedule. Among projects in the investment preparation or investor and contractor selection stages, seven are also behind schedule.

For projects scheduled for completion in 2026, management agencies assessed that 14 projects and sub-projects could be completed as planned. However, the Ministry of Construction reported that 25 projects and sub-projects had disbursement rates below 20 percent, including six projects with no disbursement.

The meeting reviewed the progress of several major projects, including the Ring Road 4 project in the Hanoi Capital Region, which had achieved a disbursement rate of 21.2 percent.

Hanoi authorities acknowledged responsibility for the slow disbursement and said completion of the project was expected to be postponed to 2027, with technical opening scheduled for early 2028—around two years later than initially planned.

Energy projects at different stages

In the energy sector, Deputy Minister of Industry and Trade Trương Thanh Hoài said key projects were at different stages, ranging from investment preparation and investor selection to construction, with progress varying among project groups.

Of the 18 LNG power projects on the monitoring list, 16 have selected investors. Two have commenced construction, while 14 are completing investment preparation procedures. The two projects that have yet to select investors are Nghi Sơn LNG and Long Sơn LNG.

Minister of Industry and Trade Lê Mạnh Hùng said the 18 LNG projects had a combined capacity of more than 20,000 MW, but only Hiệp Phước LNG was currently assessed as capable of meeting its scheduled timeline.

Most of the remaining projects are facing difficulties in investment preparation and in completing conditions required for implementation, he said.

Of the 16 hydropower projects that have selected investors, two are under construction and 14 are completing investment preparation procedures.

Several power transmission projects also continue to encounter difficulties related to land procedures, conversion of forest-use purposes, route alignment agreements and site clearance.

Site clearance and material costs remain major bottlenecks

Reports from the Ministries of Construction and Industry and Trade, together with discussions at the meeting, identified site clearance, land-related issues, investment procedures and resource availability as common obstacles affecting projects in both sectors.

For transport projects, construction materials remain a challenge due to supply capacity and price fluctuations, alongside difficulties related to site clearance and construction organization.

In some cases, identified material reserves are sufficient to meet project requirements, but actual daily supply capacity is only around 30 percent of demand.

Minister of Construction Trần Hồng Minh said average construction material prices had increased by approximately 18–20 percent, while cost contingencies for many projects were around 10 percent.

He also noted that delays by some local authorities in updating material prices had affected the application of prices and payments for completed construction work.

In the energy sector, key difficulties are concentrated in investment preparation and implementation, land procedures, site clearance, financing arrangements, power purchase agreements and related requirements.

For gas-to-power projects, officials noted that delays affecting one component could have consequences for the entire project chain.

Lê Mạnh Hùng called for a review of each project’s actual capacity to meet its scheduled timeline, saying the assessment would provide a basis for determining an appropriate power supply plan.

Leaders of ministries, agencies and localities participating in the meeting also called for more efficient use of resources, accurate assessment of project progress and clearer accountability among agencies responsible for implementation.

Deputy Minister of Finance Tạ Anh Tuấn said achieving the target of disbursing 100 percent of the 2026 capital plan remained challenging.

The Ministry of Finance called on ministries, agencies and localities to proactively reallocate capital within their authority in order to improve disbursement performance and ensure more effective use of public investment resources.