A
fresh infrastructure development approach is imperative.
Ministry of Planning and Investment (MPI)
statistics show that Vietnam needs $295-305 billion based on 2010 prices and
$385-395 billion based on actual prices, to pump into planned infrastructure
projects up to 2020.
However, the country is reportedly in a
position to raise around $210-215 billion for infrastructure development in the
next decade, more than a half of the proposed figure.
For 2011-2015, Vietnam will need $106.2-111
billion to service infrastructure needs with $53.1-55.5 billion spent on
transport infrastructure development, $20.6 billion on power sector
infrastructure, $10.6 billion on urban and rural infrastructure and $4.8
billion on information communications technology infrastructure.
The country’s largest challenge in developing
infrastructure was addressing the capital mobilisation dilemma, according to
MPI’s Development Strategy Institute deputy head Nguyen Ba An.
In the ‘Developing local synchronised
infrastructure system serving industrialisation and modernisation cause from
2010-2020’ plan developed by the MPI, the MPI voiced its proposals to help
boost infrastructure development up to 2020.
Accordingly, the MPI recommended shifting the
state’s role from direct investment into profit and risk sharing with private
equity investors. This means, the state will mostly engage in site clearance,
giving commercial support to infrastructure development and executing works
that are not willingly handled by non-state investors.
Besides, the MPI proposes the government soon
give birth to a legal framework on risk-sharing between the state and private
equity investors, ensuring healthy competition among private performers in
infrastructure services provision via public private partnership,
build-transfer or build-operate-transfer models.
The MPI also urges the government to soon
introduce policies to help turn land resources into a wealth to benefit
infrastructure development.
Supportive of this idea, Ministry of
Transport’s key transport infrastructure project steering committee former
administrative chief Nguyen Ngoc Long said infrastructure development targets
in the next decade could not be achieved unless there were breakthroughs in
policies to offset capital shortfalls.
Industry experts said a lack of risk-sharing
schemes between the state and private investors and mechanisms to turn land
into development resources and inappropriate fee collections were major
hindrances scaring away investors.
Total capital for infrastructure development in the past decade was
around $80 billion, equal to 9 per cent of the country’s GDP and one-fourth of
total investment development capital during the period, a fairly high level
compared to China with 20-22 per cent of GDP, Indonesia 19-20 per cent and the
Philippines 18-19 per cent.
Anh Minh | vir.com.vn
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