In the first four months of 2026, the disbursement of public investment funds remained sluggish, with as many as 14 ministries, agencies, and localities nearly not disbursing or recording disbursement rates below 1%. The situation of “funds waiting for projects” remains common, as many units were allocated substantial resources but disbursement was very low because projects were not yet eligible for implementation.
According to the Ministry of Finance’s report on the allocation and disbursement of public investment funds in the first four months of 2026, implementation progress has not met expectations despite an increase in the scale of disbursement. As of April 30, 2026, total disbursed capital reached 144,282.9 billion dong, equivalent to 14.2% of the plan assigned by the Prime Minister.
Disbursement results by level
Of the total disbursed capital, the central budget disbursed 38,802.5 billion dong (10.7%), while local budgets disbursed 105,480.4 billion dong (16.2%). Compared with the same period last year, the disbursed value rose by 12,615.7 billion dong, but the implementation rate declined by 1.7%.
The Ministry of Finance said the main reason is that the 2026 plan size increased sharply, up 22.7% year-on-year. In addition, the long holiday at the end of April affected construction progress and capital payments at many projects.
Performance by ministry, agency, and locality
By the end of April 2026, the Ministry of Finance recorded 8 central ministries/agencies and 16 localities achieving or exceeding the national average disbursement rate. Conversely, 27 ministries/agencies and 18 localities had results below the national average, including 14 units that nearly did not disburse or had disbursement rates below 1%.
Scale of the 2026 public investment plan
The Ministry noted that early-month disbursement is affected by multiple difficulties and bottlenecks. The total scale of the 2026 public investment plan—including allocated funds, locally added funds, and carry-overs from previous years—reached 1,106,800.55 billion dong, creating very large pressure for implementation in the coming months.
Key bottlenecks affecting disbursement
- Construction material shortages and higher costs: Shortages of materials such as fill, sand, and stone occurred in many localities, while fuel and transport costs rose, pushing overall investment costs higher and requiring project or contract adjustments.
- Price volatility linked to Middle East conflicts: Fluctuations are forecast to continue pushing up material prices, increasing financial risk for contractors and affecting progress.
- Land clearance delays: Many projects face difficulties identifying land origin, formulating compensation plans, and relocating infrastructure.
- Slow completion of investment procedures: Some projects have not completed investment procedures due to lengthy drafting, appraisal, and approval processes, as well as land, environmental, and planning regulations.
- Early-phase focus on preparation: In the early phase, investors mainly focused on preparation such as design, budget formulation, and contractor selection, so completed works and payments did not grow significantly.
- Limited implementation capacity and project management: Some investors and project management units have limited capacity, with a lack of proactive leadership.
- Staffing shortages: Staffing shortages in some localities, especially in newly reorganized administrative units, also affect overall progress.
- Legal framework gaps: Shortcomings in legal frameworks related to land, construction, environment, and innovation remain barriers.
Ministry of Finance measures to accelerate disbursement
To address the situation in the coming months, the Ministry of Finance proposed five measures:
- Finalize detailed allocations promptly: Ministries, sectors, and localities must complete detailed allocations for the 2026 capital plan. For cases not completed before May 10, 2026, they must report clear causes and responsibilities to the Ministry of Finance by May 15, 2026 for consolidation and handling per regulations.
- Secure materials and manage contract adjustments: Localities should ensure stable construction material supply by completing planning and licensing for mining. Management agencies should issue guidelines to adjust contracts in line with price fluctuations. The Ministry of Construction is tasked with urging and coordinating with local authorities to monitor material price movements and guide contract adjustments, while proposing appropriate governance measures.
- Address land clearance through legal amendments: The Ministry of Agriculture and Environment is tasked with submitting amendments to the Land Law within 2026 and proactively handling issues during the interim period.
- Strengthen discipline and governance: Public investment management should strictly address delays and lack of responsibility, while strengthening cadres to ensure adequate capacity for project delivery.
- Improve payment processing and reporting: Streamline procedures and simplify payment documents to disburse funds in accordance with regulations. Prepare payment dossiers immediately for works that have been completed and accepted, avoiding concentration at the end of the month or year. For amounts ready for detailed allocation, promptly input into the TABMIS budgeting system by the deadline to ensure budget availability for disbursement. Ministries/agencies and localities must also implement strict reporting, maintain complete and accurate disbursement data, and coordinate closely with the State Treasury to ensure data consistency and transparency.
