Based on the theories on quality and efficiency of public investment and on the ground of a new economic model, this study carries out an analytical assessment of the management of Vietnam’s public investment, with the primary aims to detect limitations on management, carry evaluation of the investment, and propose solutions to improving its quality and efficiency. | Diep Gia Luat et. al. / Journal of Economic Development 23(1) 02-24 2 Enhancing Quality and Efficiency of Public Investment in Vietnam up to 2020 DIEP GIA LUAT University of Economics HCMC – gialuat@ DANG VAN CUONG University of Economics HCMC – dangcuong@ BUI DUY TUNG University of Economics HCMC – tungbd@ ARTICLE INFO ABSTRACT Article history: Based on the theories on quality and efficiency of public investment and on the ground of a new economic model, this study carries out an analytical assessment of the management of Vietnam’s public investment, with the primary aims to detect limitations on management, carry evaluation of the investment, and propose solutions to improving its quality and efficiency. The findings indicate that both the public investment quality and efficiency of Vietnam reveal certain limitations, and no evidence can be found for the effectiveness of investment expenditures in short terms, although a long-term relation exists between the public investment and economic growth. A few comprehensive solutions to investment enhancement until 2020 are as follows: (i) Rationally adjusting investment structures and portfolios, (ii) Improving institutional environment; (iii) Controlling investment efficiency; and (iv) Modernizing the monitoring system for the public investment. Received: Aug. 27 2014 Received in revised form: Jan. 30 2015 Accepted: Dec. 30 2015 Keywords: Public investment, quality, efficiency, ARDL, dynamic OLS. Diep Gia Luat et. al. / Journal of Economic Development 23(1) 02-24 3 1. Introduction In Vietnam public investment plays a significant role in total social investment. Recent years saw its positive contribution in domestic socioeconomic development along with its .beneficial effects, such as on attracting foreign capital investment, promoting rapid economic growth, enhancing living standards of citizens, stabilizing macroeconomic performance, and significantly facilitating poverty .
