Private investment to infrastructure development prioritised

20/03/2007 -- 7:12 PM

Ha Noi (VNA) - The private sector, both domestic and foreign, is the first to receive priorities to invest in Viet Nam 's infrastructure development in the coming years, with the target of attracting 72.8 billion USD in the 2010-2020 period. This was announced by the Ministry of Planning and Investment at the Viet Nam-Japan forum on State and Private Cooperation held in Ha Noi on Mar. 20. Presenting a report on the State strategy to promote the model of state- private cooperation in infrastructure development, Tran Bo, Vice Chairman of the Urban Infrastructure Department of the Ministry of Planning and Investment affirmed that it is important to encourage and create favourable conditions for the private sector to invest in infrastructure development and service supply projects in the context that the total demand for social investment capital is increasing while the State budget is small and State spendings for infrastructure development remain limited. Prof. Fukunari Kimura from Keio University said that this form of cooperation helped combine sources of capital and share responsibility and risks and gave high effectiveness thanks 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 as the Vietnamese economy is rising strongly, and its for capital to develop infrastructure is very great. Meanwhile, the country's private economic sector is also growing and can take a bigger part in the process of national development. He added that Japanwanted to extend aid to this process of cooperation. Of Viet Nam 's total social investment, economic infrastructure accounts for 70 percent with 70 percent of the total coming from the State budget. Investment from all three state, private and foreign investment sectors in infrastructure of educational, health care and social services has been on the rise over the recent years. Projects calling for investment in the form of state-private cooperation in the coming years are mainly involved in land transport, railways, sea transport, air transport and several major projects in the plan on "two economic corridors and an economic belt." Tran Bo said that in addition to calling investment into these major projects, the State also pledged to take measures to promote state-private cooperation. He noted expansion of the bond market with more businesses being allowed to take part in has helped generate long-term capital, increase the decentralisation of investment management and implementation of policy to reduce or exempt tax for transport infrastructure projects.-Enditem
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