Vietnam should speed up PPP model: ADB President

 Speaking at a press briefing in Hanoi on September 19, Takehiko Nakao said Vietnam should also encourage competitive bidding for PPP projects in an effective and transparent manner.

He emphasised the ADB is assisting Vietnam in compiling a PPP Decree, aimed at clarifying the role of the PPP model and making it more effective in the country.

Meanwhile, Vietnam should focus on improving its business climate to attract more foreign direct investment (FDI), which plays a vital role in economic development, he said.

The ADB President praised Vietnam’s macroeconomic achievements and stable sustainable economic growth, saying Vietnam once recorded the highest economic growth rate in the world in 1990, and it became a middle-income country in 2010.

The country deserves to be applauded for maintaining its political and macroeconomic stability - a key factor in ensuring socio-economic development, said Takehiko Nakao.

However, he said, Vietnam’s economic growth declined from 7.3% in the 2000 - 2007 period to 5.7% in the 2008- 2013 period due to slow reform and global fluctuations.

To gather steam, he suggested the country accelerate economic restructuring, particularly in State-owned enterprises (SOEs), public investments, and the banking sector. In addition, the government needs to enhance management on public debt and procurement.

Vietnam should also step up its equitisation process, giving priority to developing small-and-medium-sized enterprises (SMEs) and private businesses, he said.

During his Vietnam visit and attendance at the fifth Asian Development Forum (ADF-5) in Hanoi, the ADB President made an 8-point proposal to maintain and stimulate economic growth in Asian countries, including Vietnam.

He stressed the need to stabilize the macro-economy, develop infrastructure, promote human resource development, facilitate investment and trade liberalisation, ensure good administration, commit to equitable development, build up national development strategies, and ensure political stability and security.