Participants in the mid-term Vietnam Business Forum 2019 in Hanoi on June 26 (Photo: VNA)Hanoi (VNA) – Vietnam needs to swiftlyperfect its infrastructure to meet growing development requirements as well asforeign investors’ demand, especially when it is expected to become the mostattractive investment destination in the region, heard a forum in Hanoi on June26.
At the mid-term Vietnam Business Forum (VBF),Co-Chairwoman of the VBF Consortium Virginia B. Foote said in 2018, 76 percentof foreign direct investment in Vietnam was poured into manufacturing, realestate and retail, which are important growth driving sectors.
According to the Global Infrastructure Outlook, thecountry will need over 600 billion USD to achieve infrastructure goals by 2040.While the budget is not enough to meet this development demand, destinationsfor long-term and stable investment worth trillions of USD around the world arestill being sought.
If those capital sources are connected with theinfrastructure investment demand in Vietnam, the flow of goods and passengerswill be facilitated and productivity improved, more jobs created, and budgetrevenue increased, the report said.
Chairwoman of the American Chamber of Commercein Vietnam (AmCham)’s Ho Chi Minh City chapter Amanda Rasmussen said mobilisingcapital for infrastructure needs the participation of private investors. AmChammembers hope that the Vietnamese Government will set up an investment mechanismin the public-private partnership (PPP) format in the field of infrastructure.
She also recommended that to ensuresustainability, Vietnam should make sure that seaports and airports aresituated in locations convenient for but not too close to residential areas toavoid transport pressure caused by urbanisation.
Chairman of the Japanese Chamber of Commerce andIndustry in Vietnam Nobufumi Miura said Vietnam needs to promote investment ininfrastructure projects. However, investors are encountering certainPPP-related difficulties and risks.
The Government should clarify risk allocationamong it and relevant parties to ensure suitable payback, he said, adding thatJapanese businesses believe the promotion of the PPP will help fuel economicdevelopment and improve people’s living standards.
Vice Chairman of the European Chamber ofCommerce in Vietnam (EuroCham Vietnam) Tomaso Andreatta said the country holdshuge potential and a favourable geographical location to make use of investmentcapital sources and improve the infrastructure system.
He pointed out the inefficient management ofexpressways which has led to the fact that the use of these facilities haven’tbeen maximised and traffic congestion not addressed. Therefore, the Governmentshould enhance monitoring to ensure the effective allocation of resources andthe safety and sustainability of infrastructure facilities.
The official also highlighted the need todiversify means of transport, noting that inland waterway, railway and airtransport should be connected with one another to ease pressure on roadtransport. The relationship between transport infrastructure and exportprocessing zone planning also needs to be thoroughly considered to maximisetheir use in the future.
Andreatta also proposed the Government considerthe application of new technologies to transport infrastructure and speed upthe integration of procedures with the national single window and the ASEANsingle window mechanisms to harmonise the infrastructure system since this isalso a driving force of the development and investment attraction.-VNA
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