Community inspection and control is an effective measure, especially for projects using capital mobilized from people's contributions. Of course, inspection and control must not interrupt the project implementation.
The requirements of inspection and control are honesty, completeness, accuracy, objectivity and timeliness. Therefore, the State creates conditions for the implementation of inspection and control functions to ensure requirements, from the organization of the apparatus, staff, regulations on legal status, regulations on functions and tasks, strict procedures, ensuring independence in operations. For example, the State Audit (SA) from 2005 onwards is a government agency. According to the 2005 State Audit Law, from October 1, 2006, the SA is a specialized agency in the field of state financial inspection established by the National Assembly, operating independently and only subject to the law; is an agency that performs the function of inspecting and controlling state finances independently of all three legislative, executive and judicial systems. The independence of the State Audit is stipulated by law to ensure that the conclusions and recommendations of the State Audit are objective and have high legal value because it is an "external" inspection, independent of the audited unit in terms of personnel organization and operating costs.
In general, the state's inspection and supervision of investment in construction and development in the transport sector requires: 1) Regular and timely detection and handling of violations and errors in project implementation.
2) Quality control and inspection of projects must be carried out accurately and strictly.
In summary, in order for state management of investment in construction using state budget capital in the transport sector to be able to meet the requirements as analyzed in Table 2.1, it is necessary to ensure the following conditions as in Table 2.2.
Table 2.2. Conditions for implementing state management of investment in construction using state budget capital in the transport sector
Factors
Content requirements | |
1. Legal environment and policy mechanism | 1. The legal environment is built in a synchronous manner and is regularly reviewed, supplemented and perfected. 2. Mechanisms and policies must be appropriate; sanctions must be strict for participants at all stages. 3. Legal environment and public policy mechanism and transparency. Settlement work must be consistent nationwide. |
2. Investment management organization. | 1. The organization performing the consulting work must be independent and proactive according to professional proposals. 2. Investors need to arrange enough capital to implement the project, avoiding prolonging and spreading out, causing loss. 3. Implement uniform and unified methods of approving unit prices for project settlement nationwide. 4. Organize and manage the budget closely. |
3. Management staff capacity | 1. The planning and scheduling staff must be able to keep up with the changes. 2. The capacity of the contractor and consulting unit (establishment, management, construction survey, construction design, construction supervision) has good experience and expertise. 3. The settlement appraisal officer must have expertise and practical experience |
Check, control | 1. Must regularly and promptly detect and handle violations and errors in project implementation. 2. Quality control and inspection work The project needs to be implemented accurately and strictly. |
Source: Author's construction | |
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2.2.4. The need to improve state management of investment in construction from the budget in the transport sector
State management of investment in construction from the budget in the transport sector plays an important role in developing economic and social infrastructure, creating an environment to attract capital sources from economic sectors for investment and development, shifting the economic structure towards industrialization and modernization, contributing to the implementation of social goals, poverty reduction, and improving people's lives. This requires innovation for more effective management. This is due to the following requirements:
* Firstly: Due to the continuous development of the national economy, it is necessary to improve state management of investment in construction from the budget in the transport sector. Transport plays a particularly important role in the economy, is a very important infrastructure sector, creating a material basis for social engineering, a decisive factor in the formation and innovation of fixed assets of national economic sectors. The more the economy and society develop, the more the demand for transport increases. The interdependence in the development process between transport and economic sectors is mutual. Our country's economy is shifting to a market economy, all economic activities, including construction activities, are also changing. Improving state management of construction activities is an objective and urgent requirement.
When switching to a market economy, all economic activities are transferred to market mechanisms, the previous centralized, bureaucratic, and subsidized management methods are no longer suitable for the operating system of the state management object system.
- the economy in general including XDGT.
The economy operates according to the market mechanism, operating on the basis of its system of laws such as: Law of value, supply and demand, competition, monopoly... In addition to the advantages of that mechanism for the operation of the economy, that mechanism itself also reveals many defects, negatively affecting the goals.
State management criteria. Therefore, state intervention is needed to promote positive factors and limit the impact of negative factors of the market mechanism.
Nowadays, transportation is considered one of the main economic service sectors that is directly related to all production activities and the life of the whole society. Thanks to this service, all economic and social activities can meet. Transportation services have supported economic development. The biggest challenge to economic development is the infrastructure sector. Transportation is a part of infrastructure, which can hinder or support development, contribute to economic growth, poverty reduction, and environmental improvement.
The field of transport construction in our country today is attracting many resources, especially using capital from the budget and society, so state management of this field is extremely important, in order to effectively use a large amount of investment capital that is being and will be invested in this field.
In the open economic conditions, construction competition becomes fierce and fierce. If the domestic transport construction force is not reorganized, with modern technology, in line with international practices, it will lose its competitiveness in the Vietnamese construction market. Innovation in management objects is an urgent requirement. The development and acceleration of industrialization and modernization of transport construction cannot be without the improvement of construction management. The continuous development of the national economy requires the improvement of state management of investment in construction from the budget in the transport sector.
* Second: Perfecting state management of investment in construction from the state budget in the transport sector due to the requirement to increase investment efficiency: on schedule, ensuring quality and longevity of works. The efficiency of investment in construction from the state budget in the transport sector is ultimately reflected in the results, in the quality of works after completion and putting into use on time, associated with the capacity to manage investment capital for construction from the state budget.
Investment development is always a direct factor determining the economic growth of each country. Transport is a priority in development investment. Investment to develop a diverse, modern, convenient, safe and internationally traded transport system is an inevitable need in regional and world integration. In transport, the relationship between investment in infrastructure development and investment in transport business is close. To have transport, there must be investment. Investment in transport infrastructure requires a large amount of capital, mainly from the state budget. To encourage businesses to invest in transport business, the State must increase investment in developing transport infrastructure to encourage business investment. Investment in transport infrastructure is an investment that is difficult to recover capital, but the benefit that the economy receives is that it creates conditions to promote investment in production and business development of businesses and households in the transport sector. KCHTGT supports the economy, in essence creating conditions for the development of transportation activities. The benefits that the economy receives are good, convenient, low-cost and safe transportation services. The lower the transportation cost, the greater the benefits. That leads to an increase in social production efficiency.
Investment in transport infrastructure is a specialized form of investment in transport infrastructure. Transport infrastructure activities contribute to increasing and improving fixed assets for the economy, creating a basis for accelerating the application of technical advances in the transport sector. Therefore, the requirement to increase investment efficiency: on schedule, ensuring quality and longevity of works is very necessary in investment in transport infrastructure.
Experience from countries with developed market economies shows that: The market economy itself requires a correspondingly modern technical and social infrastructure. To do so, a large amount of capital for construction investment from the state budget for the transport sector is needed, and accordingly, it also requires regular attention to the management of capital for construction investment from the state budget in the coming time in our country.
Similarly, to improve the competitiveness of goods, the competitiveness of enterprises and the national competitiveness of our country in the domestic and foreign markets, it is impossible not to have a lot of investment capital for infrastructure construction, and it is impossible not to innovate to strengthen management and effectively use investment capital for infrastructure construction from the state budget to increase investment efficiency: on schedule, ensuring quality and longevity of infrastructure construction works.
*Third: Due to the requirement to quickly and effectively overcome the waste, loss and corruption in the field of investment in construction from the budget in the transport sector today. The current situation of the field of investment in construction in our country, waste and loss of capital are two common diseases today. Therefore, perfecting the management of investment in construction from the state budget is extremely important and indispensable.
In recent years, the State's investment and development capital has been increasing, contributing significantly to the economic restructuring towards industrialization and modernization, developing socio-economic infrastructure, significantly increasing new production capacity, promoting economic growth, eliminating hunger and reducing poverty, creating new jobs, improving and enhancing the material and spiritual life of the people. However, the management of construction investment capital from the State budget in the transport sector still has many pressing issues: some investment policy decisions are inaccurate; the widespread situation of investment dispersion is reflected in all stages of the investment process, from investment planning policy, project establishment and appraisal, survey and design to investment bidding, acceptance, adjustment of estimates, settlement and putting works into operation and use of poor quality; outstanding debt of construction investment capital is high and tends to increase. Losses and waste in construction reduce the quality of the project and affect the life of the project compared to the design. This is also a loss of State capital that must be taken into account, because the project can only serve for a number of years less than the number of years in the approved project.
The cause of industrialization and modernization of the country has been chosen to follow a shortened development path, and has been requiring the application of more and more technical equipment and technology in a modern direction, and in line with it must be a modern economic and social infrastructure. Both of these contents require a lot of investment capital for construction, especially investment capital for construction from the State budget.
The characteristics of this type of capital are high risk, non-refundable expenditure, so it can easily lead to waste and large loss, that is one aspect. On the other hand, capital creation is difficult, but effective management and use of capital is a decisive condition for the pace and success of industrialization and modernization. Therefore, it is necessary to constantly improve the management and effective use of construction investment capital from the State budget in our country and Hanoi at present.
In the investment in construction from the State budget in the transport sector, any increase in investment costs compared to the necessary level, leading to a reduction in the efficiency of investment capital, is considered a waste and loss of capital, and will reduce the pace and quality of economic and social growth and development. That is one aspect. On the other hand, when the growth rate remains unchanged, if the management and use of growth results are not good, it will hinder production development, slow down the economic restructuring towards modernization; employment and income will decrease, unemployment rate will increase and people's lives will be slow to improve, social justice will be easily stretched, society will be unstable, and the superiority of the socialist regime that our country is aiming for will be weakened.
Therefore, the requirement to quickly and effectively overcome the waste, loss and corruption in the field of investment in construction from the budget in the transport sector is very necessary and urgent. These two diseases of waste and loss can be identified through the following diagram 2.1:
LOSS OF STATE CAPITAL FOR CONSTRUCTION
E. Waste of state capital in construction
1. Macro management of capital and state budget.
C. Ineffective
2. Planning quality
3. Ask-give mechanism + poor planning, planning with wrong objectives
4. Urgent, last minute completion.
5. Deterioration due to lack of capital budget for maintenance.
1. When the project is put into use, the socio-economic conditions are different from the approved project.
2. Technical features of outdated equipment.
1. Land prices and site clearance increased
B. Prolongation
2. Material loss
3. Equipment price compared to technical features becomes outdated
Quality and life of the project is reduced
1. The process and procedures are cumbersome but have many loopholes.
2. Insufficient capital to implement
3. Slow disbursement.
4. Total project estimate increased
A. Spread
1. Planning and plans do not take into account efficiency, heavy subsidy thinking.
2. Mechanism for requesting and granting construction projects outside of planning and plans.
3. Incongruity between State budget capacity and number of projects.
4. Assigning localities growth rate targets leads to extensive development.
D. Loss of construction capital
1. Closed planning-planning-project process.
2. Survey and design quality
3. Consulting, design (when there is negativity)
4. Appraisal and approval
5. Bidding mechanism is abused
6. Construction (purchase of materials/price/type/negative)
7. Construction supervision in form/collusion
8. Formal/negative acceptance
9. Slow disbursement, negative
10. Slow and negative settlement
11. Capacity of Investor and Project Management Board
12. The State budget must pay interest on the late disbursement of ODA capital and government bonds.
Diagram 2.1 : Loss of State capital in infrastructure construction [ 77 ]