Although the merging process presents challenges in management and administration, the province is determined to prevent this process from becoming an obstacle to the effective implementation of socio-economic development projects.

According to the report from the provincial People’s Committee, in the first quarter of 2025, the Gross Regional Domestic Product (GRDP) of the province is estimated at VND 3,514.27 billion, an increase of 10.31% compared to the same period last year. However, despite the growth in GRDP, the disbursement of public investment funds has not shown significant progress. Specifically, in 2025, the province was allocated VND 3,196,678 million, but by the end of Q1, only VND 515,488 million, or 16.13% of the allocated capital, had been disbursed. Notably, the disbursement rate for the national target programs has only reached 19.29%.

The primary cause of the slow disbursement is issues in compensation and land clearance. This remains the biggest bottleneck affecting project implementation progress. These include difficulties in verifying land ownership due to the complex history of land use management, challenges in inventorying damaged assets (houses, structures, crops, and livestock) when the government acquires land, and changing mechanisms and policies.

Additionally, the process of administrative restructuring has created hesitations among some officials in handling administrative procedures, leading to delays in project implementation. There have been cases where actions related to public investment projects were delayed due to concerns over potential changes in the investor, payment responsibilities, or task transfers, especially before the mergers of departments and sectors. Some contractors have even been cautious in carrying out work, fearing that the restructuring could affect project acceptance and payment processes.

At a recent meeting to assess the progress of key projects in the province, the Steering Committee for Key Projects pointed out that the approach of the provincial Department of Natural Resources and Environment (before the merger) involved delays and a tendency to push tasks off. Additionally, some investors and local authorities failed to take decisive actions in identifying individuals responsible for delays or inefficiency, causing further delays.

Moreover, during the restructuring and streamlining process, some projects had to halt new constructions or review their scope and investment plans, resulting in delays in project funding allocations to avoid waste. Changes in responsibilities, authority, and project management processes due to the elimination of district-level administration and the establishment of new functional agencies after the restructuring have also contributed to delays in project approval, design reviews, and payment processing.

For example, the project to manage multi-hazard risks in the Nậm Rốm River Basin, which aims to protect the public, adapt to climate change, and promote socio-economic development in the province, has a completion deadline of December 31, 2025. However, as of April, some contract packages are still waiting for available land for construction. The main reason for this delay is the inadequate coordination between the Land Development Center (formerly the provincial Department of Natural Resources and Environment) and relevant districts, making land verification inefficient, leading to slow land clearance progress.

To ensure the public investment fund disbursement in 2025 reaches 100% of the planned allocation, the province has set a roadmap. By the end of Q2, it aims to achieve over 40% disbursement for new projects, over 60% for ongoing projects, and over 80% for other programs and tasks. By the end of Q3, disbursement should exceed 60% for new projects and 80% for ongoing projects. By the end of Q4, disbursement should exceed 80% for new projects and 90% for ongoing projects. The goal is to complete 100% disbursement by January 31, 2026.

The province has asked all sectors and localities to report specific issues and challenges related to each project and task. If problems arise with legal documents, specific articles or points of laws, decrees, or circulars should be mentioned. In the implementation process, difficulties in investment proposals, preparations, approval decisions, land clearance, bidding, and payment processing should also be clarified. From there, specific solutions and authority assignments can be proposed.

For administrative units undergoing restructuring and mergers, to ensure the continuity of public investment management, the provincial People’s Committee has instructed all departments, sectors, and local governments to stabilize operations, ensuring that procedures related to approval, land clearance, bidding, acceptance, and payment continue without interruption until the competent authority completes the restructuring decision. Additionally, the province emphasized the importance of monitoring and supervising to prevent delays and take stern action against officials or units hindering the process.

For the projects transitioning after the elimination of district-level administration and the merging of communes, in late April 2025, the provincial People’s Committee issued a document guiding localities to review and compile a list of all public investment projects for the 2021-2025 period, including ongoing, unfinished, and unapproved projects, to ensure careful management and maintain disbursement progress.

The province also addressed initial difficulties at the State Treasury, which had been affected by the restructuring. However, the province has asked the unit to propose solutions and speed up data migration, system setup, and software installation to ensure smooth operations. As of March 15, 2025, the State Treasury in the region has fully transitioned to a two-tier model, and operations have stabilized, without significant obstacles impacting disbursement.

It is acknowledged that the elimination of district-level administrations and the merging of communes may cause some challenges for officials and civil servants; however, with the collective efforts and spirit of unity, each official, party member, and sector needs to continue striving and working harder. The focus should remain on the common goal of improving the lives of citizens, attracting investments, and achieving the province’s development objectives.