Want to be in the loop?
subscribe to
our notification
Business News
PPP FUNDING CHANNEL FOR TRANSPORT AND ENERGY INFRASTRUCTURE DEVELOPMENT
In addition to policies on public-private partnership (PPP) investment, many solutions need to be applied consistently to boost private investment in transport and energy infrastructure development.
Modern transport infrastructure development to spur interregional economy and energy development for business demands and sustainable environmental protection are two of strategic tasks for socioeconomic development of Vietnam.
Vietnam aims to have 5,000km of highways by 2030. Currently, it has 1,163km of expressways and 786km is under construction.
In Power Master Plan VII, renewable energy is expected to be raised to 4.5% of electricity production in 2020 and 6% in 2030. Accordingly, the growth must reach 16 billion kWh (6-7,000 MW) and 42-45 billion kWh (15-20,000 MW).
The investment demand for transport and energy infrastructure is huge while social resources are enormous and the PPP model is considered an effective channel to mobilize finance and technology from the private sector for transport and energy infrastructure development in Vietnam.
According to the Procurement Management Department, the Ministry of Planning and Investment, the legal framework for PPP investment has been basically completed to accelerate enforcement of PPP investment policies. The PPP model appeared more than 20 years ago, with the initial legal framework being a governmental decree on BOT investment contract. It was then gradually developed from Decree No. 15/2015 to Decree No. 63/2018. Most recently, the National Assembly passed the Law on PPP Investment, effective from January 1, 2021. The PPP Investment Law features attraction of more private resources, especially from foreign investors.
In particular, the Ministry of Planning and Investment drafted and submitted Directive No. 30/CT-TTg dated November 23, 2021 on accelerated implementation of PPP investment and bidding policies to the Prime Minister for approval. This directive presses relevant bodies to quickly complete detailed instructions for effective enforcement of PPP Law.
Although the policy basis is being gradually completed, many barriers are lying in the way to draw PPP investment fund. Some associations and investors have reported on PPP policy matters such as tax, land, state budget, management and use of public assets. In addition, PPP is a complex investment method engaged by many stakeholders (government, businesses, lenders and others) in a long-term contract, with many potential risks.
In order to further promote the PPP investment method in the coming time, experts recommend that the policy framework on PPP should be consistent to attract the private sector into specific PPP projects in line with their objectives, nature and characteristics. Moreover, many other factors are needed, including an enabling investment environment, macroeconomic stability, better national credibility, better planning quality and capital market diversity.
Each ministry, branch and locality also play a very important role in enforcing the law quickly and effectively. Accordingly, competent authorities need to select appropriate projects that produce socioeconomic effects. At the same time, the financial and commercial feasibility must be ensured. Risk distribution must be a reasonable and acceptable to investors.
Additionally, ministries, branches and localities should prioritize allocating a part of state fund for PPP projects. Investment promotion also needs to be taken into account to widely woo domestic and foreign investors.
As for difficulties that existed prior to the effective date of the PPP Law, competent authorities will need to support investors to deal with them as per contracts signed and rule of law. That will contribute to strengthening investors' confidence in new projects.
Source: VCCI
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.