The socio-economic and approval mechanisms, inspection and supervision are relatively strict, while investment in projects using state budget capital still has many loopholes.
Specifically, restructuring investment capital sources requires early determination of the economic functions and tasks of the State in the market economy, which sectors need State investment, which sectors should be combined with private investment. State investment capital will not be poured into industries that the private sector can do, or into purely business sectors such as taxis, hotels, restaurants, etc. State and private investment do not compete but complement and cooperate with each other.
Restructuring investment does not mean absolutely reducing investment capital from the State budget (economic development still requires investment) but rather adjusting the current unreasonable investment proportion in the total capital source to achieve the best efficiency, management and use. It is necessary to gradually adjust the structure to gradually reduce public investment in total social investment by the State gradually withdrawing from the purely profit-oriented business sector. For restructuring of industries and sectors, State budget capital will be restructured and improved in efficiency, mobilizing other resources in the public-private manner, expanding the socialization model, including public services.
However, with the reinvestment trend and the Government's investment policy, the implementation of investment projects in Bac Giang province has also had new changes, significantly affecting resources as well as other factors of the project.
3.2.1.2. Industrialization trend in Bac Giang province
Industrialization is an inevitable development process. Whether this process takes place quickly or slowly depends on many subjective and objective factors.
In general, as a part of our country, the urbanization process is viewed in the socio-economic development planning as a comprehensive development system to ensure maximum utilization of the advantages of industrialization, creating a proactive position to help the provincial government create conditions for population development, improve living standards and contribute more to the whole country.
However, if urban development is not strictly controlled, it will lead to spontaneous situations that will have unpredictable negative impacts on investment project management in general and on investment project management using state budget capital in particular. Because some industrial parks have attracted a lot of workers, this issue requires that in the coming time, a large number of investment projects must be implemented to upgrade and renovate technical infrastructure and social infrastructure to meet the increasing needs of the people.
Thus, with a large number of investment projects in the future, Bac Giang province will face many difficulties in management, difficulties in balancing capital sources to implement investment projects, difficulties due to limited human resources in implementing investment project management. Invisibly, the industrialization process has caused negative impacts on investment project management in Bac Giang province.
3.2.1.3. Development trends, impacts and possibilities of applying scientific and technical advances and new technologies to investment project management
The trend of technological development in the world today is taking place strongly in many fields. Domestic and international technological trends have, are and will affect many aspects of economic and social life in the province. Scientific and technological advances have also greatly affected the management of investment projects.
It can be said that scientific and technological advances have supported the improvement of State management capacity. Along with the socio-economic development, the management of socio-economic activities of the province is increasingly diverse and complex; improving the capacity and effectiveness of State management. As one of the leading provinces in implementing administrative procedure reform, aiming at "one door, one stamp" effectively and quickly, it is necessary to end the division and fragmentation of information between management units, gradually organizing, arranging and building a common data system serving State management is indispensable, in which the level of dissemination and access rights, exploitation and updating of information are specifically decentralized; data on administrative management requires
digitization, and at the same time implementing the computerization program of planning work, as well as determining growth targets in planning.
3.2.2. Objectives of managing investment projects using state budget capital in Bac Giang province in the period 2011 - 2015
3.2.2.1. On investment capital for projects using the State budget
To ensure the average growth rate of the province according to the plan set out in the period of 2011 - 2015, it is necessary to mobilize investment capital of approximately 18 trillion VND (Table 3.3), investment capital for total social development, 2.1 times higher than 5 years ago, an average of 3.66 trillion VND must be mobilized each year, this is a big challenge for Bac Giang province.
Table: 3.3: Development investment capital plan using the state budget in Bac Giang province for the period 2011-2015
Unit: billion VND
A
LIST | Total | Expected period 2011-2015 | |||||
Year 2011 | Year 2012 | Year 2013 | Year 2014 | Year 2015 | |||
TOTAL | 18,309 | 2,893 | 3,545 | 3,776 | 3,986 | 4,110 | |
1 | Budget capital by the Central management | 2,223 | 350 | 392 | 439 | 492 | 551 |
2 | Budget capital by Local management method | 8,077 | 1,200 | 1,380 | 1,587 | 1,825 | 2,085 |
3 | ODA capital managed by the province | 2,406 | 308 | 507 | 533 | 534 | 524 |
4 | ODA capital from the Central Government manage | 2,182 | 261 | 471 | 505 | 515 | 430 |
5 | Government bond capital | 3,201 | 724 | 745 | 672 | 580 | 480 |
6 | Preferential credit loans invest | 220 | 50 | 50 | 40 | 40 | 40 |
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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div.maincontent .s40 { color: black; font-family:Times New Roman, serif; font-style: normal; fo](https://tailieuthamkhao.com/uploads/2022/06/06/dich-vu-phi-tin-dung-tai-ngan-hang-thuong-mai-co-phan-dau-tu-va-phat-8-1-120x90.png)
Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Recruitment of civil servants at the People's Committee of Luc Nam district, Bac Giang province - Current situation and solutions - 9
Source: Bac Giang Provincial People's Committee - Summary report on the master plan for socio-economic development of Bac Giang province 2006-2020 [74]
In which the capital structure is as follows:
- State budget capital is 10,300 billion VND, accounting for 14.1% of total investment capital (centrally managed budget capital is 2,223 billion VND, local budget capital is 8,077 billion VND).
- ODA capital is 4,488 billion VND, accounting for 6.3% of total investment capital (ODA capital managed by the province is 2,406 billion VND, ODA capital managed by the central government is 2,182 billion VND).
- Government bond capital is 3,201 billion VND, accounting for 4.4% of total investment capital.
- Preferential investment credit capital of 220 billion VND accounts for 0.3% of total investment capital.
3.2.2.2. On investment projects using state budget capital
In the next 5 years, it is necessary to maximize capital from outside, at the same time strongly mobilize resources from the population and enterprises, from all economic sectors and consider capital exploitation channels from the stock market for business development. Orientation with the capital source planned above, in the period of 2011-2015, the number of investment projects will increase accordingly, many projects will have a rapid increase in investment capital. The target in this period is 386 projects with specific investment according to (Table 3.4).
Table 3.4: Summary of planned investment projects for the period 2011-2015 in Bac Giang province
Unit: Project
STT
LIST | Expected period 2011-2015 | |||||
Year 2011 | Year 2012 | Year 2013 | Year 2014 | Year 2015 | ||
TOTAL | 168 | 185 | 190 | 206 | 218 | |
1 | Group A Project | 11 | 12 | 12 | 12 | 12 |
2 | Group B Project | 41 | 46 | 54 | 56 | 64 |
3 | Group C Project | 116 | 127 | 126 | 144 | 145 |
Source: Bac Giang Provincial People's Committee - Socio-economic development plan for the period 2011-2015[76]
In specific investment-oriented projects as follows:
- Capital investment projects through the management of ministries and branches: The total number of investment projects through ministries and branches in this period is 21 projects with an investment capital of 3,558 billion VND. Of which, through the Ministry of Industry and Trade are 3 projects with a total capital of 1,280 billion VND, the Ministry of Transport is 5 projects with an investment capital of 1,178 billion VND, the Ministry of Agriculture and Rural Development is 1,178 billion VND.
The village sector has 4 projects with a total capital of 578 billion VND, the Ministry of Education and Training has 3 projects with an investment capital of 400 billion VND, the remaining fields have 6 projects with an amount of 122 billion VND.
- Provincial budget capital investment projects by sectors: Total number of investment projects is 89 projects. Of which, 4 projects for industry with investment capital of 230 billion VND, 12 projects for transportation with investment capital of 998 billion VND; 38 projects for agriculture and rural development with investment capital of 1,748 billion VND, 7 projects for health with investment capital of 310 billion VND, 13 projects for culture, sports, tourism, information and communication and the Ministry of Industry and Trade with investment capital of 890 billion VND, 7 projects for education with investment capital of 106 billion VND, 3 projects for state management with investment capital of 600 billion VND; 5 projects for urban development with capital of 360 billion VND, in addition to project program 135 with capital of 332 billion VND and some other projects invested by the district and city with capital of 391 billion VND.
- Projects using ODA capital: Total number of ODA projects is 19 projects with capital of
4,588 billion VND. Of which, the number of projects directly managed by the province is 10 projects with a capital of
2,406 billion VND and projects managed by the Ministries are 9 projects with an investment capital of 2,182 billion VND.
- Projects using government bond capital: A total of 33 projects with a total capital of 3,201 billion VND invested in traffic works, hospital and school construction.
In addition to projects invested by the state budget, there are also projects invested by enterprises and foreign capital with large and typical projects as follows: Vu Xa Thermal Power Plant Project, Luc Nam District with a total estimated capital of 800 billion VND; Yen Lu Thermal Power Project, Yen Dung District with an estimated capital of 5,690 billion VND; Ha Bac Fertilizer and Chemical Company Project with an investment capital of 5,000 billion VND.
3.3. Solutions to improve the efficiency of investment projects using state budget capital in Bac Giang province
In order to implement the orientations in the period of 2011-2015, in addition to measures to mobilize maximum investment capital sources to meet the development investment needs of the whole society, it is necessary to improve the efficiency of using investment capital for
Projects also need to be closely monitored and implemented, especially projects invested with state budget funds.
Although construction investment using state budget capital only accounts for over 30% of the total investment capital for social development, it plays a very important role in attracting other capital sources to form an investment structure that highly promotes the economic restructuring towards industrialization and modernization of the country.
The effective use of state budget capital in investment and construction is an urgent requirement today, especially when capital is still limited and investment needs are high. The inherent problems in the investment and construction sector over the past years have many subjective and objective causes, including many shortcomings and deficiencies in investment and construction management, especially investment from state capital; the policy mechanism and system of legal documents in the investment and construction management sector are incomplete, not synchronized and have many shortcomings. Therefore, it is possible to propose solutions to overcome and improve the efficiency of using investment capital from the state budget as follows:
3.3.1. Reform, amend and supplement policy documents and management methods during the investment process.
- Firstly, complete the system of legal documents on investment and construction management in a synchronous, unified and stable direction: Research and develop the Law on management of public investment activities not for business purposes. Amend a number of articles of the Investment Law, Bidding Law, Enterprise Law, and Construction Law that are currently inconsistent. Complete the system of documents guiding the promulgated laws on investment management in a direction to limit overlap, contradiction, inconsistency and lack of uniformity. Legal documents on investment management must have specific sanctions to handle cases of irresponsibility that affect the quality of construction works, cause damage to the State or to partners performing construction work, and cases of violations of regulations on basic construction investment for all parties involved in the investment process.
- Second: Quickly complete the Public-Private Partnership (PPP) institution in the field of project investment in the province.
+ The investment method under BOT, BTO, BT contracts was introduced by the Vietnamese State very early in the Foreign Investment Law, and later in the General Investment Law in 2005. On that basis, Bac Giang province has had mechanisms to implement it, but the number of these projects is very rare, almost no projects are implemented in the above form. It was not until 2009 that the Government issued Decree No. 108/2009, some of which have just been amended by Decree No. 24/2011, to initially institutionalize this new investment method. In 2010, the Prime Minister issued Decision No. 71/2010 promulgating the Pilot Regulation on Investment in the form of Public-Private Partnership (also known as State-Private Partnership), internationally known as PPP (Public-Private Partnership). It can be seen that although some types of investment in the form of PPP were proposed early, the results achieved were quite poor, the main reason being institutional weaknesses.
+ Our country has passed the threshold of a poor country to become a lower middle-income country, so ODA capital sources will obviously decrease and end. Because ODA capital accounts for a large proportion of total investment capital for infrastructure development, our country needs to improve the efficiency of investment capital in the infrastructure sector on the one hand, and seek additional capital sources to replace ODA capital on the other hand. The Government has recently been interested in promoting PPP for that reason.
+ Develop and encourage the form of investment credit instead of the form of allocation for investment projects to build socio-economic infrastructure with the ability to recover capital. Quickly complete the institution of Public-Private Partnership (PPP) in the field of project investment in the province: To complete the PPP institution, it is necessary to grasp its characteristics, which is the "3 shares" relationship , that is " sharing benefits, sharing responsibilities, sharing risks" . The PPP contract must clearly define the content of those "3 shares", especially sharing risks, because the contract often has a very long term, up to 20-30 years or more. Sanctions for contract violations must also be very clear and fair. The problems that have recently occurred in the implementation of some PPP contracts often have
The reason for not fulfilling the commitment from the government side but the private partner must accept.
- Third: Perfecting the institution of hiring organizations to manage investment projects using state budget capital.
Except for some small and scattered projects, it is necessary to study the issuance of a mandatory regime to hire a project management consulting organization (the old name is the Management Board, should be changed to project management consulting, because the project management function is very broad, including the functions of the authorized person, the investor, and many other entities participating in project management). This organization is professional, independent, and works for the investor through an economic contract.
+ Currently, investors of large-scale public projects are ministries, provincial People's Committees and state-owned enterprises. The Investment Law (Article 63) and the Construction Law (Article
45) Our country stipulates two forms of construction investment project management:
1) the investor directly manages the project; and 2) the investor hires a project management consultancy organization. However, public investors often choose to use the form of self-management of the project and assign this management task to the Project Management Unit (PMU) established by the Ministry or the provincial level. This method already existed in the previous planned economy, when the construction boards (ie project management boards), design units, and construction units were all state organizations, receiving tasks directly from the state plan, only responsible for coordinating work but not having contractual relationships. When switching to a market mechanism, economic contractual relationships replaced planned relationships, but old practices still persisted, hindering international integration, making it difficult for project management to be socialized and professionalized.
+ Currently, only a few public investment projects hire “construction supervision consultants”, but due to the lack of institutional clarity, there are many problems. The term “construction supervision consultant” is also very ambiguous because it can only supervise the volume or quality of construction, while project management consultants not only supervise but also manage contracts.
+ After the reform and opening up, China soon realized the disastrous consequences.