Vietnam will slash 10 percent, or VND97 trillion (US$4.7 billion), of development investment this year, the Ministry of Planning and Investment said.
Nearly half of the cutback, VND46.89 trillion, comes from revoking, delaying or scaling down new and ineffective investment projects, compared to VND37 trillion in cutbacks last year.
Major state-owned enterprises including Eletricity of Vietnam, oil and gas group PetroVietnam and telecommunication giant VNPT have slashed investments in 907 projects, saving more than VND39 trillion.
The Ministry of Planning and Investment said many organizations, state companies and provinces have not pulled their weight in national efforts of investment cutback.
The ministry has proposed the government take back capital granted to any cities and provinces that fail to revise and slash their investments by May 31.
Vietnam is determined to cut down public investment by shifting capital from inefficient or non-essential construction to more urgent projects which are scheduled to be completed in 2011, the government said in a report on its news website last Saturday, citing Prime Minister Nguyen Tan Dung.
The country is targeting a budget deficit of below 5 percent of its gross domestic product for 2011, as it tries to rein in inflation and restore economic stability.