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Submitted by ctv_en_8 on Wed, 03/21/2007 - 10:00
The private sector, both domestic and foreign, will be given priority to invest in Vietnam's infrastructure development with the aim of attracting US$72.8 billion in the 2010-2020 period, said the Ministry of Planning and Investment at the Vietnam-Japan forum on State and Private Cooperation held in Hanoi on March 20.

Tran Bo, Vice Chairman of the Urban Infrastructure Department under the Ministry of Planning and Investment, affirmed that it is important to create favourable conditions for the private sector to invest in infrastructure development and service supply projects. The total demand for social investment is increasing while the State budget is small and State spendings on infrastructure development remain limited, he said.

Prof. Fukunari Kimura from Keio University said that this form of cooperation helps combine sources of capital and share responsibility and risks so as to achieve high effectiveness due to its simple management model and high competitive edge.

Kazuhiko Bando, Deputy Director-General of Japan's Ministry of Economy, Trade and Industry, said that the Vietnamese economy is rising strongly with great demand for capital to develop infrastructure. Meanwhile, the country's private economic sector is growing to play a bigger role in the process of national development. He added that Japan wants to extend aid to this process of cooperation.

Economic infrastructure currently accounts for 70 percent of Vietnam's total social investment. The state, private and foreign investment sectors’ investment in educational, health care and social services infrastructure has been on the rise over the recent years.

Recent projects calling for investment in the form of state-private cooperation have been mainly involved in land, railway, sea, and air transport and the "two economic corridors and an economic belt" plan.

Tran Bo said that apart from appealing for investment, the State will take measures to promote state-private cooperation. He noted that the expansion of the bond market for more businesses to join has helped generate long-term capital and increase the decentralization of investment management and the implementation of policies on tax reduction or exemption for transport infrastructure projects.

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