Ho Chi Minh City rewards fast-spending districts
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In Ho Chi Minh City, Vietnam, several districts quickly disbursed public investment funds by valuing land fairly for compensation, shifting funds from stalled projects, and promptly paying contractors.
The city government rewarded districts like An Lac and Binh Dong with bonuses of 100 to 200 billion dong for their efficient use of public funds.
An Lac, a district with a population of over 172,000 people, achieved an 86% disbursement rate of its 1.425 trillion dong investment budget by mid-October, and aims to complete the entire plan by year-end. The district authorities regularly reviewed project progress and redirected funds from projects facing delays in land acquisition or legal procedures to those ready for implementation. They also streamlined the payment process for contractors, removing the perception of slow payments from government entities.
Binh Dong district completed land compensation for an expansion of D4 road, affecting 69 households, in under three months, disbursing almost 245 billion dong, without resorting to forced land acquisition. These districts combined fair compensation policies with close engagement with residents. Compensation was based on independently appraised land values and publicly displayed for feedback. They also provided support for relocation, home repairs, and temporary housing.
The city government’s incentive program, mirroring a directive from the city’s Party Secretary Tran Lưu Quang, rewards effective performance and addresses shortcomings in implementation.
