Vietnam needs to swiftly perfect its infrastructure to meet growing development requirements as well as foreign investors’ demand, especially when it is expected to become the most attractive investment destination in the region, heard a forum in Hanoi on June 26.
|Participants in the mid-term Vietnam Business Forum 2019 in Hanoi on June 26__Photo: VNA|
At the mid-term Vietnam Business Forum (VBF), Co-Chairwoman of the VBF Consortium Virginia B. Foote said in 2018, 76 percent of foreign direct investment in Vietnam was poured into manufacturing, real estate and retail, which are important growth driving sectors.
According to the Global Infrastructure Outlook, the country will need over 600 billion USD to achieve infrastructure goals by 2040. While the budget is not enough to meet this development demand, destinations for long-term and stable investment worth trillions of USD around the world are still being sought.
If those capital sources are connected with the infrastructure investment demand in Vietnam, the flow of goods and passengers will be facilitated and productivity improved, more jobs created, and budget revenue increased, the report said.
Chairwoman of the American Chamber of Commerce in Vietnam (AmCham)’s Ho Chi Minh City chapter Amanda Rasmussen said mobilizing capital for infrastructure needs the participation of private investors. AmCham members hope that the Vietnamese Government will set up an investment mechanism in the public-private partnership (PPP) format in the field of infrastructure.
She also recommended that to ensure sustainability, Vietnam should make sure that seaports and airports are situated in locations convenient for but not too close to residential areas to avoid transport pressure caused by urbanization.
Chairman of the Japanese Chamber of Commerce and Industry in Vietnam Nobufumi Miura said Vietnam needs to promote investment in infrastructure projects. However, investors are encountering certain PPP-related difficulties and risks.
The Government should clarify risk allocation among it and relevant parties to ensure suitable payback, he said, adding that Japanese businesses believe the promotion of the PPP will help fuel economic development and improve people’s living standards.
Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham Vietnam) Tomaso Andreatta said the country holds huge potential and a favorable geographical location to make use of investment capital sources and improve the infrastructure system.
He pointed out the inefficient management of expressways which has led to the fact that the use of these facilities hasn’t been maximized and traffic congestion not addressed. Therefore, the Government should enhance monitoring to ensure the effective allocation of resources and the safety and sustainability of infrastructure facilities.
The official also highlighted the need to diversify means of transport, noting that inland waterway, railway and air transport should be connected with one another to ease pressure on road transport. The relationship between transport infrastructure and export processing zone planning also needs to be thoroughly considered to maximize their use in the future.
Andreatta also proposed the Government consider the application of new technologies to transport infrastructure and speed up the integration of procedures with the national single window and the ASEAN single window mechanisms to harmonize the infrastructure system since this is also a driving force of the development and investment attraction.- (VNA/VLLF)