Vietnam needs $500b for infrastructure in 10 years, says ministry
Vietnam needs $500 billion for its infrastructure development in the next 10 years, a senior official at the Ministry of Planning and Investment has said.
La Van Tang, director of the ministry’s Bidding Management Department, released the figure at a seminar on initiatives for higher efficiency in bidding, jointly held in Hanoi by the ministry and the US Trade and Development Agency on August 5.
The amount is needed for investing in various infrastructure projects including those for building, upgrading or repairing seaports, airports, and electricity and water supply systems, Tang said.
Meanwhile, the state budget and other public financial sources can provide only a small part of the needed funds. Therefore, it is essential to raise funding from private investors, both local and international, to make up for the discrepancy, Tang said.
According to a World Bank (WB) report, Vietnam lacks financial mechanisms to mobilise capitals for its great demand for infrastructure development. With a target of $300 billion in GDP value by 2020, the Southeast Asian country needs additional funds for infrastructure development in various fields, including traffic, electricity, irrigation, education and heathcare, WB experts said.
Meanwhile, the state budget, ODA, government bonds and other sources can cover merely 50-60 per cent of the demand, they pointed out.
A sustainable capital supply for infrastructure development in Vietnam cannot exclusively rely on the state budget and ODA but it requires wider contributions from the local capital market as well as private investors, said Jennifer Sara, sector manager of the Sustainable Development Department of the WB.
The WB also proposed establishing the Municipal Development Fund (MDF) for tier-2 cities to spearhead local infrastructure development. The MDF will act as a subprime lender and help improve capital mobilisation through urban bonds, the WB said.
Vietnam needs $500 billion for its infrastructure development in the next 10 years, a senior official at the Ministry of Planning and Investment has said. La Van Tang, director of the ministry’s Bidding Management Department, released the figure at a seminar on initiatives for higher efficiency in bidding, jointly held in Hanoi by the ministry and the US Trade and Development Agency on August 5. The amount is needed for investing in various infrastructure projects including those for building, upgrading or repairing seaports, airports, and electricity and water supply systems, Tang said. Meanwhile, the state budget and other public financial...
Vietnam needs $500 billion for its infrastructure development in the next 10 years, a senior official at the Ministry of Planning and Investment has said.
La Van Tang, director of the ministry’s Bidding Management Department, released the figure at a seminar on initiatives for higher efficiency in bidding, jointly held in Hanoi by the ministry and the US Trade and Development Agency on August 5.
The amount is needed for investing in various infrastructure projects including those for building, upgrading or repairing seaports, airports, and electricity and water supply systems, Tang said.
Meanwhile, the state budget and other public financial sources can provide only a small part of the needed funds. Therefore, it is essential to raise funding from private investors, both local and international, to make up for the discrepancy, Tang said.
According to a World Bank (WB) report, Vietnam lacks financial mechanisms to mobilise capitals for its great demand for infrastructure development. With a target of $300 billion in GDP value by 2020, the Southeast Asian country needs additional funds for infrastructure development in various fields, including traffic, electricity, irrigation, education and heathcare, WB experts said.
Meanwhile, the state budget, ODA, government bonds and other sources can cover merely 50-60 per cent of the demand, they pointed out.
A sustainable capital supply for infrastructure development in Vietnam cannot exclusively rely on the state budget and ODA but it requires wider contributions from the local capital market as well as private investors, said Jennifer Sara, sector manager of the Sustainable Development Department of the WB.
The WB also proposed establishing the Municipal Development Fund (MDF) for tier-2 cities to spearhead local infrastructure development. The MDF will act as a subprime lender and help improve capital mobilisation through urban bonds, the WB said.
