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The Government has outlined principles and procedures for managing public investment capital through the stages of allocation and disbursement to account-finalization, thereby improving financial transparency and efficiency in the use of state budget funds.
Taking effect on September 26, 2025, Government Decree 254/2025/ND-CP specifies the management and account-finalization of public investment capital for projects funded by the state budget (including projects using local budget funds but subject to the central management); and those invested with lawful revenues of state agencies and public non-business units.
The new decree provides the account-finalization of public investment funds from the state budget according to the budget year and the account-finalization of projects once they are completed or terminated under competent authorities’ decisions.
It specifies procedures for payment and account-finalization of projects funded by official development assistance (ODA) capital and foreign concessional loans. However, the procedures for capital withdrawal and management of capital withdrawal must comply with the Government’s regulations on the management and use of ODA and foreign concessional loans.
Under the new regulation, the State Treasury is responsible for disbursing public investment capital from the state budget and from lawful revenues of state agencies that are reserved for investment.
Public non-business units will control and disburse capital from their lawful revenues that are reserved for investment. The agencies authorized by the Ministry of National Defense and Ministry of Public Security will directly control and disburse capital for projects in the fields of national defense and security.
The management and payment of public investment capital for those projects must ensure proper purposes, eligible beneficiaries and compliance with regulations on public investment management and the state budget, relevant laws and the Decree.
With regard to offshore public investment projects, the Decree states that signed contracts, host countries’ current laws, treaties to which the Socialist Republic of Vietnam is a contracting member, and Vietnam’s current laws will serve as the legal ground for managing and disbursing capital for such projects. Project-managing agencies will, on behalf of investors, propose and conduct transactions for payment of public investment capital with paying agencies.
The total disbursed capital amount for a project must not exceed the total investment approved or adjusted by the competent authority. The public investment capital amount disbursed for a project in a year must not exceed the total annual capital estimate allocated in that year for such project.
The new decree supersedes Decree 99/2021/ND-CP dated November 11, 2021, on the management, payment and account-finalization of projects funded with public investment capital and Article 6 of Decree 125/2025/ND-CP dated June 11, 2025, on the definition of competence of two-tier local administrations over the fields under the Ministry of Finance’s state management.
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