Recovering advance capital to improve public investment efficiency

ĐBP - In the context of limited public investment resources, the management and use of advance capital for projects has been given special attention by Điện Biên province. During the 2021-2025 period, alongside accelerating disbursement progress, the province has focused on reviewing and recovering advances in public investment, thereby reducing losses and waste while improving the efficiency of budget use.

Public investment capital has played an important role in promoting infrastructure development, improving people’s livelihoods, and driving socio-economic growth in the province. At the same time, reviewing, managing, and recovering public investment advances has enabled more efficient use of resources and minimized waste. The task of advance allocation and recovery has been regularly supervised by financial agencies and the State Treasury, in coordination with project owners, to ensure balances are collected in line with regulations.

The project on compensation, site clearance, and resettlement support for the renovation and upgrade of Điện Biên Airport has a large outstanding advance balance. File photo

From 2021 to 2025, the province has prioritized resolving large outstanding advances accumulated over many years. For advances from the local budget, the outstanding balance by the end of 2024 was over VND 477 billion. Major projects with large advances included: compensation, site clearance, and resettlement for the Điện Biên Airport upgrade project (over VND 363 billion); construction of the training ground for the Western area of Military Region 2 (VND 47.6 billion); technical infrastructure for the government office complex, public service area, and commercial-service zone along the 60m road (VND 50 billion); and auxiliary facilities for police stations in border communes of the former Điện Biên district (VND 8 billion).

To repay these advances, in 2025 the province allocated over VND 6.2 billion from 2024 land-use revenue to the local budget. As of June 2025, the balance of local budget advances was still more than VND 471 billion, with the largest portions being: Điện Biên Airport site clearance (over VND 363 billion), Military Region 2 training ground (VND 41.3 billion), and the 60m road technical infrastructure project (VND 50 billion).

The technical infrastructure project for the office headquarters area, public facilities, and commercial-service area along the 60m road is also among the projects with a large advance balance.

For advances from the central budget, the outstanding balance by the end of 2020 was VND 436 billion from two projects: the Quảng Lâm - Na Cô Sa road (VND 76.5 billion) and the Mường Lay - Nậm Nhùn road (VND 360 billion). During 2021-2025, the province allocated medium-term capital to fully recover these advances, reaching 100% recovery - a significant effort to resolve long-standing central budget advances.

However, recovery has faced challenges. Some projects received advances but had no cleared land for construction, preventing acceptance and repayment. Site clearance projects in particular often stalled, with investors unable to disburse despite having advance funds. Delays in approving adjustments or extensions also slowed recovery. In some cases, contractors faced financial difficulties, bankruptcy, or relocation, making recovery even harder.

At the end of 2024, the embankment project protecting residential and farmland in Cà Là Pá hamlet, Leng Su Sìn commune (now Sín Thầu), had VND 148.254 million in advances requiring recovery. Of this, Điện Biên Trung Nguyên Co., Ltd. owed VND 105.6 million; Sơn Nam Construction Consulting Co., Ltd. nearly VND 23 million; and Sông Gianh Design and Technology Development JSC (Hà Nội) over VND 24.8 million. Despite efforts, recovery has been difficult as some companies ceased operations locally, while others dissolved after the death of their directors.

Recovering advance capital is aimed at optimizing investment resources. In the photo: Workers casting components for the Động lực Road project.

In practice, the larger the outstanding advances in basic construction, the lower the effectiveness of public investment. Idle capital reduces the ability to allocate resources to other urgent projects, leading to dispersion and inefficiency. Therefore, effective management and recovery of advance capital is essential to ensure transparency and optimize financial resources.

To address slow recovery, departments and localities must only provide advances for construction packages after land clearance is completed and actual work volume matches the advance amount. This rule prevents capital from being “frozen” due to a lack of site readiness. At the same time, overdue advances must be reviewed with clear identification of causes and responsibilities of related organizations and individuals.

For project owners, advances must comply with strict principles. The amount, timing, repayment schedule, and recovery method must be clearly stated in contracts, aligned with implementation progress and annual work volumes. For compensation, support, and resettlement projects, advances must be based on specific plans and schedules. In cases where contractors have dissolved but advances remain unrecovered, project owners must report details and propose solutions to refund the budget.

Along with recovering advances, the province also focuses on improving the quality of works and projects, disbursing funds, and enhancing the effectiveness of public investment capital. In the photo: The contractor constructing the Inter-level Primary and Secondary School in Si Pa Phìn commune.

meanwhile, financial authorities and the State Treasury must strictly enforce advance and recovery regulations, especially for overdue balances. They are required to classify and report overdue advances, identify causes and obstacles, and propose handling measures.

To further improve efficiency, the Government recently issued Decree No.254/2025/NĐ-CP (September 26, 2025) on the management, payment, and settlement of projects using public investment capital, which includes provisions on advance management. With stricter control and proper use of funds, infrastructure projects will be able to achieve their intended benefits, contributing to socio-economic development and improving people’s living standards.

Quang Long
Comment

You have 500/500 characters left

Please enter 5 or more characters!!!

Recent news

  • 'From Uncle Hồ’s teachings to artist’s sense of responsibility

    From Uncle Hồ’s teachings to artist’s sense of responsibility

    CULTURE - SPORTS -
    ĐBP - “Culture and the arts are also a battlefield, and artists are soldiers on that battlefield.” President Hồ Chí Minh’s words have remained deeply etched in the minds of generations of artists and performers at the Điện Biên provincial Art Troupe. For those working in the arts, following Uncle Hồ’s example begins with their everyday work: taking rehearsals seriously, devoting themselves to every performance, constantly learning and creating, and cherishing the traditional cultural values of their homeland and country.
  • 'Raising awareness to repel child marriage

    Raising awareness to repel child marriage

    SOCIAL AFFAIRS -
    ĐBP - Costly lessons from dropping out of school to become wives and husbands at an excessively young age are gradually being addressed in Phình Giàng commune. Driven by the decisive and synchronized involvement of the entire political system, the scourge of child marriage is progressively being curtailed.
  • 'Unlocking resources, forging the future (Part 1)

    Unlocking resources, forging the future (Part 1)

    ECONOMY -
    ĐBP - In the journey to generate development momentum, improving the investment and business climate and enhancing provincial competitiveness are not only immediate imperatives, but also strategic solutions for Điện Biên to unlock resources, attract investment, and expand room for growth.
  • 'Điện Biên’s aspirations to develop

    Điện Biên’s aspirations to develop

    NEWS - POLITICS -
    ĐBP - The 81-year journey since the sacred moment President Hồ Chí Minh read the Declaration of Independence at historic Ba Đình Square is a continuous voyage of our nation safeguarding, cultivating, and promoting the values of independence, freedom, and peace through willpower, intellect, and the strength of solidarity.
  • 'Điện Biên joins nationwide festive rhythm

    Điện Biên joins nationwide festive rhythm

    SOCIAL AFFAIRS -
    ĐBP - These days, Điện Biên dons the radiant crimson of the National Flag. Fluttering against clear blue skies and blending with bustling daily life, the national flag creates a sacred, proud atmosphere for the country’s festive occasion. Local residents eagerly celebrate Independence Day in their own ways, joining in the shared joy of the nationwide festival.
  • 'Điện Biên bustles on National Day

    Điện Biên bustles on National Day

    SOCIAL AFFAIRS -
    ĐBP - On National Day, September 2, historical relic sites across Điện Biên province drew large numbers of local residents and tourists, while communities across numerous communes and wards vibrantly joined cultural, artistic, and athletic activities.
  • 'Điện Biên radiant on National Day

    Điện Biên radiant on National Day

    TRAVEL -
    ĐBP - The 5-day National Day holiday on September 2 serves as an occasion for residents and visitors to rest and enjoy experiences. Across streets and residential quarters in Điện Biên, the crimson of the National Flag blends with colorful banners and floral displays, creating an atmosphere of jubilation and excitement to welcome the nation’s major holiday.
  • 'The light of faith

    The light of faith

    ECONOMY -
    ĐBP - Amid winding roads embracing villages along hill slopes like silk ribbons, rows of towering concrete poles stretch across deep ravines, bringing the national power grid to illuminate mist-shrouded mountain peaks.