Infrastructure development vital for growth

Viet Nam must develop its infrastructure if it is to meet its aim of being a modern, industrialised country by 2020, said Deputy Minister of Planning and Investment Cao Viet Sinh at a workshop on public-private partnership in Hanoi yesterday.

"Investment co-operation between the State and the private sector should be widely applied in infrastructure development in general and transport infrastructure in particular," Sinh said.

The one-day workshop was attended by the World Bank’s Sustainable Development Sector Manager Hoonae Kim and representatives from the Ministry of Planning and Investment, the Ministry of Finance, and officials from other government agencies, as well as private sector representatives.

The workshop heard it was important for the Government to establish the means and magnitude of its support for infrastructure projects which involve private investment.

While Kim said the Government should encourage the private sector to invest in the country’s development by providing the necessary incentives and guarantees.

The importance of developing the financial markets – particularly the debt capital markets – and the reform of the banking sector were also emphasised.

The World Bank said Viet Nam was one of Asia’s fastest-developing countries, with an average annual growth rate of 7.5% over the last decade. However, it said the country was facing challenges with developing its infrastructure to keep pace with its rapid economic growth.

The Government has made infrastructure development a key priority, together with the establishment of a market-oriented system over the next five years to boost private investment in infrastructure projects.

The World Bank is currently engaged in assessing Vietnam’s potential for growth in the private sector, particularly in banking and capital markets.

Also attending the meeting were representatives from South Africa, India and the United Kingdom who shared their country’s experiences of establishing market-oriented infrastructure systems, such as the PPP funding of the London Underground. (Viet Nam News)