Infrastructure projects seek investors

Can Tho asked to turn into hub of Mekong Delta

Vietnam is calling for infrastructure investment under the Public-Private-Partnership (PPP) model as funds from the State budget, Government bonds and ODA (Official Development Assistance) capital are insufficient to meet demand.

Dang Huy Dong, deputy minister of Planning and Investment, said Vietnam hoped to cooperate with Italian businesses to attract capital and exchange work experiences in infrastructure improvement.

Dong spoke at a conference on Vietnam's infrastructure development held in Ha Noi this week by the Ministry of Planning and Investment, in collaboration with the Italian Trade Commission and the Transport Ministry.

The Italian ambassador to Vietnam, Andrea Peregini, said his country had used the PPP model for several projects that were expected to be profitable in the future.

"Italian businesses are interested in highway projects in Vietnam because similar projects under the PPP model in Italy had been successful," he added.

Marco Saladini, Italian trade commissioner in Vietnam, said more than 5,000 kilometres of highway in Italy were built mainly under the PPP model by large European companies.

Apart from highway projects, Italy has used the PPP model for underground parks as well as electricity and transport-management projects.

Saladini said the Vietnamese Government had implemented an online auction for projects that was more transparent than in the past, creating a more favourable climate for investors.

He added that Italian businesses were committed to creating jobs for local workers at their projects in Vietnam.

In the 2006-10 period, investment capital for infrastructure development was about VND140 billion (US$28 billion) per year.

However, the need for transport, energy and environmental projects has not yet been met.

Dong said infrastructure improvement was the top priority for Vietnam because of increased development.

Vietnam needs to have 3,000-5,000km of highway, 300-400km of metro, and dozens of seaports in the next 10 years.

To meet the demand, Vietnam needs to attract billions of US dollars to develop infrastructure in the next five to 10 years.

To meet the demand, Vietnam needs to attract billions of dollars to develop infrastructure in the next five to 10 years.

Vietnam has used the PPP model to attract more private and foreign-direct invested capital for its projects, including the Ninh Binh-Thanh Hoa Highway and Dau Giay-Phan Thiet Highway. The two highways are expected to be completed by 2014.

Other projects using the PPP model include Highway No.1 Upgrade Project, Ha Noi-Lao Cai Railway, and Phnom Penh-HCMC Highway, according to the Ministry of Transport.

In the near future, Vietnam will call for more PPP and FDI capital for transport projects, such as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau Giay-Da Lat, Ben Luc-Long Thanh, the international port in Hai Phong and HCMC-Can Tho Highway.

Related Articles

• Assoc insists on power price hike despite protests
• Herd mentality adds to volatility of fluctuating real estate market
• IFC: Vietnam needs to increase PPP to support economy
• City apartments sector heats up
• Civil servants to enjoy State housing

Vietnam needs to target quality FDI

Vietnam needs to adjust its policies on foreign direct investment (FDI) and target quality investors as the competition to attract investment becomes fiercer at both regional and international levels.

The Chairman of the Association of Foreign Invested Enterprises, Dr. Nguyen Mai, stated this after witnessing the slow progress of a number of FDI projects, with capital of several billion US dollars. A number of projects have already almost had their investment certificates withdrawn.

In an interview granted to the Lao Dong (Labour) daily issued on August 25, Do Nhat Hoang, Head of the Foreign Investment Agency (FIA), said that the agency has conducted an inspection of 24 projects captalised with more than US$1 billion across the country to select eligible investors.

Accordingly, the FIA will withdraw the licenses of virtual projects and not grant certificates to investors with only a limited capacity, said Hoang. However it will still consider supporting projects which are only now slowly making progress, due to the impact of the global economic crisis, or projects that have faced unexpected difficulties.

This year, the Ministry of Planning and Investment (MPI) plans to select and guide FDI projects into pivotal areas such as supporting industries, infrastructure development, the manufacture of high export value products and human resources projects in line with restructuring the economy.

However, said Hoang, to reach the target, more effort and responsibility are needed from the MPI as well as local agencies to attract more investment.

Therefore, localities need to improve their ability to appraise projects and the capacity of investors, while holding legal responsibility, instead of taking a back seat and performing only supervisory tasks.

According to the MPI, Vietnam will attract about $21 billion in FDI this year and disburse $14-15 billion during the global economy’s recovery.

Related Articles

• HCMC targets Crossfire in online games crackdown
• IFC: Vietnam needs to increase PPP to support economy
• ‘Hold us to higher standards’
• Vietnam Air accepts web check-in for int’l flights
• High rice price cuts exports

Vietnam needs to target quality FDI

Vietnam needs to adjust its policies on foreign direct investment
(FDI) and target quality investors as the competition to attract
investment becomes fiercer at both regional and international levels.

The Chairman of the Association of Foreign Invested Enterprises, Dr.
Nguyen Mai, stated this after witnessing the slow progress of a number
of FDI projects, with capital of several billion USD. A number of
projects have already almost had their investment certificates
withdrawn.

In an interview granted to the Lao Dong
(Labour) daily issued on August 25, Do Nhat Hoang, Head of the Foreign
Investment Agency (FIA), said that the agency has conducted an
inspection of 24 projects captalised with more than one billion USD
across the country to select eligible investors.

Accordingly, the FIA will withdraw the licenses of virtual projects and
not grant certificates to investors with only a limited capacity, said
Hoang. However it will still consider supporting projects which are only
now slowly making progress, due to the impact of the global economic
crisis, or projects that have faced unexpected difficulties.

This year, the Ministry of Planning and Investment (MPI) plans to
select and guide FDI projects into pivotal areas such as supporting
industries, infrastructure development, the manufacture of high export
value products and human resources projects in line with restructuring
the economy.

However, said Hoang, to reach the
target, more effort and responsibility are needed from the MPI as well as
local agencies to attract more investment.

Therefore, localities need to improve their ability to appraise projects
and the capacity of investors, while holding legal responsibility,
instead of taking a back seat and performing only supervisory tasks.

According to the MPI, Vietnam will attract about 21 billion USD in
FDI this year and disburse 14-15 billion USD during the global
economy’s recovery./.

Related Articles

• IFC: Vietnam needs to increase PPP to support economy
• Vietnam Air accepts web check-in for int’l flights
• Social security must be guaranteed: PM
• Regulations require toys to display safety stamps
• High rice price cuts exports