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A report which scrutinised 300 projects with state investment found that 269 of them were halted because of waste last year.
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| Sluggish construction drives up costs |
According to a report from the Ministry of Planning and Investment (MPI), Vietnam had 36,607 projects which used capital from the state budget in 2010. For these projects, state funds accounted for at least 30% of their total capital.
According to the report, the delays in implementation of these projects is due to squandering of investments, problems with site clearance, capital restrains for investors along with a lack of cooperation between management agencies and contractors.
Nearly 3,500 state funded projects have gone over budget because of the high cost of construction materials as well as adjustments in planning, the report indicated.
The MPI report found that 349, out of more than 4,000 projects using capital from other private sources, violate investment regulations, 249 of which have had their licenses revoked.
However, the real number is likely much higher, since the report was based on unofficial statistics provided by ministries and local governments. The ministry added that about 40% of projects have not yet been reported by the concerned agencies.
The MPI proposed that the Government apply stricter measures to deal with agencies that do not submit reports on investment and supervision, or submit reports which are incomplete.
