The present paper aims to pinpoint drawbacks in the structure of public investment, the mechanism of management and utilization of public debts and extend some suggestions for perfecting the structure of public investment in Vietnam. | Restructuring Vietnam’s Public Investment 2 | Bùi Quang Bình Restructuring Vietnam’s Public Investment: Problems and Recommendations BÙI QUANG BÌNH* ABSTRACT The government’s public investment plays a decisive role in the national infrastructural development and investment attraction. Yet it will be achievable on the condition that the structure of public investment is logical in terms of attraction and allocation of investment sources. As we can see, albeit public investment has greatly contributed to the national economic growth in past years, there are many flaws in its structure which have affected its efficiency. Therefore, the present paper aims to pinpoint drawbacks in the structure of public investment, the mechanism of management and utilization of public debts; and extend some suggestions for perfecting the structure of public investment in Vietnam. Keywords: Public investment, restructuring of public investment. 1. PROBLEM Investment is the act of acquiring necessary commodities for a specific project. Viewed from the aggregate supply side, this activity is to renew, modify, improve, and modernize the capital of the economy, as well as to raise aggregate demand and promote economic growth. It can be undertaken by economic agents such as the government, enterprises, or individuals. In the economy, even though the public investment represents a humble percentage in comparison with that from enterprises or private persons, its influence on the private investment and the entire economy is extremely profound. It is often implemented in accordance with a certain schedule and depends on the governmental decisions as well as the way of managing such investments for economic transition and sustainable development. Since Đổi Mới, despite negative impacts from the global economic shocks, Vietnam’s economy has maintained a stable economic growth pace. This is also thanks to increases in capital accumulation and investment. However, Vietnam’s economic development
