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.

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).

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.

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.

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.