Capital sought for infrastructure development
Speaking at a Lower Mekong Initiative Infrastructure Best Practices Exchange in Ha Noi yesterday, Vien noted the transport sector needed over US$77 billion by 2020 for infrastructure development.
Meanwhile the Vietnamese Government aimed to cut down on public spending which has remained a major fund for infrastructure development in the country, he said.
Public-Private Partnerships (PPP) model was first launched in Viet Nam in 2010 when the Government approved Decision 71 governing projects developed under PPP contracts.
A national Steering Committee on PPP chaired by Deputy Prime Minister Hoang Trung Hai was set up last November.
However, also late last year, the Ministry of Planning and Investment announced a revision and upgrade of the decision to better adapt it with real situations.
Earlier, in 2009, the Lower Mekong Initiative (LMI) was created in response to the meeting between Secretary of State Hillary Clinton and the Foreign Ministers of the Lower Mekong Countries—Cambodia, Laos, Thailand and Viet Nam —in Phuket, Thailand.
The five Ministers agreed to enhance co-operation in the areas of environment, health, education and infrastructure development.
Since then, the five countries have sought to strengthen co-operation in these areas and build on their common interests.
Myanmar formally joined the initiative in July 2012.
As part of LMI, Infrastructure Best Practices Exchange is expected to bring together government officials from the LMI partner countries responsible for infrastructure development. Experts will be drafted from the public and private sectors in the United States, the Lower Mekong Sub-region and beyond to share infrastructure development best practices.
At the exchange yesterday, US Ambassador to Viet Nam David Shear said that he hoped the US and its LMI partner countries could generate cleaner electricity, build modern airport, seaport and transport networks to move goods efficiently and build information networks to move ideas and drive innovation.
Lorraine Hariton, special representative for Commercial and Business Affairs from the US Department of States, said that thousands of people in the sub-region had yet to access power, clean water and sanitation, especially women and children.
Improved infrastructure would help them to better access markets, improve livelihood and income, she said.
"The exchange regarding the Lower Mekong Initiative was very important because it brought together regional governments and local and international business to discuss infrastructure best practices that would benefit everyone in the region," she said.
Over 30 US companies attended the two-day exchange to discuss with regional government officials ways to meet infrastructure growing demand, which proved their interest and US commitment to help lower Mekong countries with infrastructure development.
Asian Development Bank’s Viet Nam Resident Mission country director Tomoyuki said that it was important to find feasible and suitable PPP models based on particular sectors and nations.
He urged a maturity of legal framework on PPP including realistic objectives and a cost and risk division between public and private sectors to ensure a win-win situation.
Meanwhile, Roland Yap, director of Government Affairs and Policy, General Electric, emphasised that transparency with high accountability and connectivity were among prior factors that investors cared about most when deciding any investment.