Italian investors keen on Vietnam’s infrastructure

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

Photo: VNA

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 Monday 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 US$140 billion, 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 US dollars.

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 HCMC-Can Tho express railway.

 

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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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Italy seeks cooperation in transport, energy and environment

Italian firms interested in Vietnam agriculture

Representatives of an Italian food processing firm meet local businesspeople at a B2B session in HCMC on Thursday - Photo: Nguyen Huy

HCMC – A delegation of Italian engineering companies and contractors in the transport, energy and environment sectors will start a three-day visit to Vietnam this Sunday to sound out business opportunities here.  

The Italian Trade Commission (ITC) Trade Promotion Section at the Italian Embassy says in a statement that it will hold several events in Hanoi including a ministerial-level seminar on October 4 and business-to-business (B2B) meetings the following day.

The Vietnam trip aims to present Italian companies from the transport, energy and environment sectors and cooperation opportunities with Vietnamese businesses.    

According to ITC, over the past five years infrastructure investments in Vietnam have not kept pace with its average annual GDP growth of 7.3%. Citing official sources, it said the country would need about US$165 billion to upgrade its infrastructure over the next five years to meet development goals.

A comprehensive study done by the ITC shows the current projects, which will be completed by 2015, in the key sectors of transportation, energy, environment and infrastructure are worth US$85 billion. Besides, Vietnam is encouraging public-private partnerships in infrastructure development.

Therefore, Italian companies in the relevant sectors are exploring opportunities in Vietnam and interested in projects to build underground car parks, traffic management systems, highways and green energy facilities.

“Vietnam’s steady growth needs increased investment in infrastructure, as acknowledged by the Vietnamese government and by foreign and domestic investors. The seminar will be an excellent chance for Vietnamese companies to forge business and investment opportunities with Italian partners,” Marco Saladini, Italian trade commissioner in Vietnam, said in a statement.

The delegation includes four engineering companies – Ideas, Majone and Partners, Molinaro Architettura and Studio Roberto Cortesi, one provider of energy production and transmission products and technologies – Finmeccanica, one major general contractor –n Cmc di Ravenna, one contractor specializing in hydraulic works – Seli, and one company providing turn-key solutions for environmental protection – Perteco.

* Italian enterprises in the food processing sector had a business matching event with Vietnamese companies in HCMC on Thursday.

Marco Saladini, Italian trade commissioner in Vietnam, said at the incorporated business matching and seminar in the city that Italy would promote Italian machinery for food and vegetable processing in Vietnam.

“As there is a strongly growing market for Italian goods in Vietnam with a population of 86 million and GDP growth of about 7%,” he said.

The Italian Trade Commission (ITC) targets fostering technological and business collaboration among Italian and Vietnamese enterprises in the field through this event.

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Italian businesses eye investments

HA NOI — A delegation of Italian engineering companies and contractors in transport, energy and environment sectors will visit Viet Nam from Sunday to Wednesday, Trade Commissioner Marco Saladini said in Ha Noi yesterday.

The purpose of the mission was to aid the nation's rapid development by improving the country's infrastructure, presenting Italian companies with co-operation opportunities, Saladini said.

Over the past five years, infrastructure investment in the country had not kept pace with the GDP growth of 7.3 per cent. To meet demand and development goals, it was estimated Viet Nam's overall infrastructure spending requirements over the next five years alone were in the range of US$165 billion, about $33 billion a year.

Italian Trade Commission research indicated initiated projects to be completed by 2015 in the three key sectors' infrastructure were worth $85 billion.

Even this smaller figure implied a strong acceleration from the current overall expenditure level of $5 billion or 9.4 per cent of the country's GDP, which was the average of the last few years, Saladini said.

The trade commission would conduct a seminar next Monday and Tuesday on infrastructure development and co-operation opportunities with Italian companies. — VNS

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