Vietnam - PPP projects await private investors

Several public-private partnership (PPP) projects out of a tentative list of 24 ones will be put forth soon to call for private investors, local and foreign alike, the Vietnamese Ministry of Planning and Investment said at a conference here in HCM City on Thursday.

Dang Xuan Quang, deputy director of the ministry’s Foreign Investment Agency, said the 24 PPP projects required total investment capital of $20 billion, but authorities would sort out some projects only for the trial scheme of promoting PPP projects.

The government will launch these PPP projects on a trial basis within a short period of three to five years, and in its preparations, the government will conduct international tenders to choose consultants and investors for these projects, Quang told the Southeast Asia Private Equity Conference.

Vietnam is in dire need of private investments and the participation of private firms in large-scale projects, he said.

“The government wants to tap the huge private capital resource,” he said.

Quang explained that the country needs at least $160-180 billion for basic infrastructure, half of which should come from the private sector.

There will be an important shift in Vietnam’s investment structure in the near future, making it more sustainable and less dependent on traditional capital sources such as official development assistance (ODA) or government bonds. A strong cut in public investments is therefore needed, Quang said.

Answering investors’ questions on the falling foreign direct investment (FDI) flow in the country, Quang said the quality should prevail over quantity.

“This year’s FDI flow has reached $9.9 billion, while FDI disbursements has totalled $8.2 billion to date, and we will try to attract good FDI projects instead of counting on many projects,” said Quang.

“I think two issues that the government will focus on in the future are how to attract private investments into infrastructure and develop the supporting industry.”

Private investors and regional investment funds at the conference all expected that forthcoming PPP projects should be commercially viable, and that there is a solid foundation for the State and the private sector to cooperate in the long term.

Jonathan Pincus, a well-known economist at the Fulbright Economic Teaching Programme, suggested that there must be harmony in ensuring benefits for both the State and the private sector.

“The interest must be balanced,” he said.

Source: Vietbiz24.com

Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.