Sunday, January 9, 2011

Italian investors keen on Vietnam’s infrastructure

Italian investors keen on Vietnam’s infrastructure

Italian enterprises are interested in infrastructure investment in form
of public-private partnership (PPP) model in Vietnam , especially
in developing highways.


At a workshop on developing infrastructure in Vietnam held on Oct. 4
in Hanoi , Italian Ambassador to Vietnam Andrea Perguni said the PPP
model has been successfully applied in his country and the embassy has
introduced several projects in Vietnam to Italian enterprises.


According to Counsellor Marco Saladini of the Italian Trade
Commission, Italy is experienced in building infrastructure
facilities as the country has 5,000 km of highways mostly built in the
form of PPP.


Italian investors are interested in
building underground car parks, highway and power projects in Vietnam,
he said at the workshop, which was jointly organised by the Ministries
of Planning and Investment and Transport, and the Italian Trade
Commission.


However, he expressed concerns about
shortcomings in the current tender process in Vietnam , saying most
major Vietnamese enterprises still enjoy State support in infrastructure
development.


Statistics released by the Asian Development
Bank (ADB) showed that the capital flow into infrastructure development
in Vietnam between 2006-2010 was estimated at 140 billion USD, a
modest amount compared to the real needs of transport, energy and
environment projects. Therefore, there are many investment chances for
investors in the PPP form.


The country will need
to build 3,000-5,000 km of highways, 300-400 km of metro lines in the
next 10 years, requiring hundreds of billions of USD.


However, the State budget, government bonds and ODA will be able to
meet only half of the demand, therefore, it is necessary to attract
private-sector and FDI capital, according to ADB.


Deputy
Minister of Planning and Investment Dang Huy Dong said Vietnam gives
top priority to infrastructure investment and is implementing pilot PPP
investment to attract capital from the private sector.


A representative from the Transport Ministry said that several
transport projects, including the upgrading of National Highway No. 1,
Ha Noi-Lao Cai railway and Phnom Penh-Ho Chi Minh City
highway are being implemented by using FDI and PPP capital.


Vietnam is calling for PPP and FDI capital in such highway
projects as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau
Giay-Da Lat and Ben Luc-Long Thanh, and other transport projects,
including Hai Phong international port and HCM City-Can Tho express
railway./.

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