The Deputy Prime Minister made the call on October 19 while attending a meeting on the Project on synchronous infrastructure construction for 2011-2020 period. Deputy PM Hải tasked relevant ministries to renovate policy making, particularly the way of thinking, propose new mechanisms on prices and finalize the Project before submitting it to the Government for issuance. Participants to the meeting underlined the necessity to define the role of the State in infrastructure development. The State should play the leading role in creating environment and sharing risks with private sector instead of direct investment. In addition, the participants also stressed the importance of focusing on key projects which would benefit socio-economic development; ensure security, national defense and protect the environment. According to the Ministry of Planning and Investment, the national transport system has been dramatically expanded, serving economic exchanges between Việt Nam and regional … [Read more...]
ADB finances infrastructure development projects
The agreements to this effect were signed in Ha Noi on Wednesday between Governor of the State Bank of Viet Nam Nguyen Van Binh and the ADB’s Director General for Southeast Asia Department, James Nugent. The Central Mekong Delta Region Connectivity Project has total investment capital of US$886 million, including ADB’s non-refundable aid of US$410 million and AUD$160 million grant financing from the Australian Agency for International Development (AusAID). Under this project, two cable-stayed bridges will be built with a combined length of 5 km and associated access and interconnecting roads totaling 26 km. The road will run on the boundaries of An Giang, Can Tho, and Dong Thap provinces to the west of the Mekong Delta Region. The two bridges and the interconnecting road should cut travel time between Ho Chi Minh City and Long Xuyen from 3.5 hours to 2.5 hours. Travel time from the Cao Lanh ferry to the Vam Cong ferry should fall from 1.5 hours to 30 minutes, while the … [Read more...]
PPP – An exit for VN’s infrastructure development
According to the WB's 2007 report on Việt Nam's development, the country's annual infrastructure investment accounted for 9-10% of GDP (much higher than the international standard). However, to meet the socio-economic development and maintain the current growth rate, WB stated, it is necessary for Việt Nam to spend 11-12% of its GDP on infrastructure. So, the engagement of private investors into infrastructure construction (with effective capital management) will help to accelerate projects, use and manage capital effectively, and reduce the Government's burden of public spending. The PPP has been fruitfully carried out in various countries and is considered a good solution to mobilize internal and external resources for national infrastructure construction in a rapid, effective and sustainable way. According to Mr. Vũ Quang Hội from Bitexco, the private sector's financial potential and capacity to invest in infrastructure building has not been made full use in Việt Nam. The main … [Read more...]
HCMC to spend US$46.5 million on infrastructure development
Ho Chi Minh City will spend VND1 trillion (US$46.5 million) on infrastructure development to support the implementation of Samsung's $1.4 billion project at the Sai Gon Hi-tech park. A corner of Saigon Hi-tech park in HCM City. The city will spend VND1 trillion to build infrastructure serving for a project of Samsung Vietnam. — Photo vir.com.vn HCM CITY (Biz Hub) — Ho Chi Minh City will spend VND1 trillion (US$46.5 million) on infrastructure development to support the implementation of Samsung's $1.4 billion project at the Sai Gon Hi-tech park. The announcement was made by the city's chairman at a meeting on January 21, newswire dddn.com.vn reported. Le Hoang Quan, chairman of the HCM City's People's Committee, disclosed the sizeable spending at a meeting with Han Myoung Sup, who was appointed as Samsung Vietnam's general director on January 19, and other representatives from the company. The city's funds will be spent on site clearance, bridge and road … [Read more...]
ACV plans $1.2 billion aviation infrastructure development
Airports Corporation of Viet Nam (ACV), the largest enterprise in the domestic transport sector, will spend about VND26.2 trillion (US$1.2 billion) on aviation infrastructure development over the next three years. Airplanes park at Tân Sơn Nhất Airports in HCM City. The Airports Corporation of Việt Nam plans to spend $1.2 billion on aviation infrastructure development between now and 2018. In an investment scheme recently sent to the Ministry of Transport, the company said it expects to use some VND7.8 trillion to upgrade facilities in "flight zones" and more than VND18.4 trillion to improve terminals and parking spaces. The firm, which manages 22 of the country's international and domestic airports, said it will prioritise investments for terminals showing high passenger growth and special socio-economic importance. The important airports include Noi Bai in the north, Dong Hoi, Phu Bai and Cam Ranh in the centre, and Tan Son Nhat, Con Dao and Phu … [Read more...]
AIIB eyes infrastructure development in Viet Nam
Viet Nam News BEIJING - The Asian Infrastructure Investment Bank (AIIB) wants to invest in infrastructure development, particularly railways, highways and seaports, in Việt Nam, said AIIB President Jin Liqun. Jin made the statement at a meeting with Party General Secretary Nguyễn Phú Trọng, who is on a visit to China, on Friday. Acknowledging the contribution of Việt Nam to the establishment of the AIIB, he noted that the construction of transport infrastructure in the country will help develop links with other ASEAN member countries. Jin vowed to work closer with the Vietnamese side in designing future projects and do his best to make co-operation in the field yield practical outcomes. For his part, Trọng congratulated the bank on the progress it achieved during one year since its foundation. He said Việt Nam and China had reached several bilateral agreements on connecting economic infrastructure during his visit, adding that infrastructure development is one of the three … [Read more...]
Strong MA role seen in infrastructure development
Increased merger and acquisition (M&A) activities can spur infrastructure development in Vietnam, a current growth imperative, Planning and Investment Minister Nguyen Chí Dung said yesterday. Le Trong Minh, Editor in Chief of the Vietnam Investment Review, speaks at the annual Vietnam M&A Forum on August 10, 2017 in HCM City. He told an M&A forum in Hanoi that the sector has entered a new chapter in the 2014 to 2018 period, riding what experts have called the second wave of investment. The capital inflow from foreign investors during this period is expected to reach US$20 billion, 25 per cent of which could happen this year. This is largely driven by equitisation commitments of major State owned enterprises, the rise of private sector and steady investment from foreign economic entities. The Ministry of Planning and Investment (MPI) has concluded that in order to catalyse growth, investment in the form of M&As in the infrastructure sector needs to increase and … [Read more...]
Capital sought for infrastructure development
Workers at a construction site near Nhat Tan Bridge in Ha Noi's Tay Ho District. Viet Nam is looking for domestic and international partners to invest in infrstructure. — VNA/VNS Photo Huy Hung HA NOI — Mobilising capital and management experiences from the private sector is a decisive factor for infrastructure development in Viet Nam, especially transport, says Deputy Transport Minister Truong Tan Vien. Speaking at a Lower Mekong Initiative Infrastructure Best Practices Exchange in Ha Noi yesterday, Vien noted the transport sector needed over US$77 billion by 2020 for infrastructure development. Meanwhile the Vietnamese Government aimed to cut down on public spending which has remained a major fund for infrastructure development in the country, he said. Public-Private Partnerships (PPP) model was first launched in Viet Nam in 2010 when the Government approved Decision 71 governing projects developed … [Read more...]
Private sector must be involved in infrastructure development
Dr Nguyen Xuan Thanh, manager of the Fulbright Economics Teaching Programme, tells Tuoi Tre (Youth) newspaper that public-private partnerships must be utilised in infrastructure development. A number of built-operate-transfer (BOT) infrastructure projects have been unsuccessful from a funding standpoint. Why was that? The BOT model is often applied to projects that offer an attractive return of assets (ROA) for private investors. Of course when it comes to BOT projects, the Government should support investors in various ways, including capital mobilisation, as guarantors, when it comes to distributing Official Development Assistance (ODA). However, when it comes in Viet Nam, both the private sector and the State enterprises are involved in BOT infrastructure projects. There are a number of reasons why BOT projects in our country have failed. The first factor that should be mentioned is incorrect project appraisal and design. They often come up with a nice forecast of the traffic volume … [Read more...]
Party sets goals for infrastructure development
The fourth meeting of the 11th Party Central Committee has issued a resolution on infrastructure construction in an attempt to advance Viet Nam's goal of becoming an industrialised and modernised country by 2020. Though the Party and Government have paid great attention to infrastructure development in recent years, systems remains poor, unco-ordinated, and with low connectivity, e.g., transportation between ports and industrial zones. Urban infrastructure is of low quality and overloaded, while social infrastructure is short in quantity and low in quality, inefficient, and fails to meet basic demand for social services like health and education. The resolution identifies both objective and subjective causes for these shortcomings, including slow changes in thinking about infrastructure development, over reliance on State budget resources, and incomplete legal system, ineffective supervision and management, and poor quality planning. The resolution stresses the need to … [Read more...]