Italian investors keen on Vietnam’s infrastructure

Italian enterprises are interested in infrastructure investment in form of public-private partnership (PPP) model in Vietnam , especially in developing highways.

At a workshop on developing infrastructure in Vietnam held on Oct. 4 in Hanoi , Italian Ambassador to Vietnam Andrea Perguni said the PPP model has been successfully applied in his country and the embassy has introduced several projects in Vietnam to Italian enterprises.

According to Counsellor Marco Saladini of the Italian Trade Commission, Italy is experienced in building infrastructure facilities as the country has 5,000 km of highways mostly built in the form of PPP.

Italian investors are interested in building underground car parks, highway and power projects in Vietnam, he said at the workshop, which was jointly organised by the Ministries of Planning and Investment and Transport, and the Italian Trade Commission.

However, he expressed concerns about shortcomings in the current tender process in Vietnam , saying most major Vietnamese enterprises still enjoy State support in infrastructure development.

Statistics released by the Asian Development Bank (ADB) showed that the capital flow into infrastructure development in Vietnam between 2006-2010 was estimated at 140 billion USD, a modest amount compared to the real needs of transport, energy and environment projects. Therefore, there are many investment chances for investors in the PPP form.

The country will need to build 3,000-5,000 km of highways, 300-400 km of metro lines in the next 10 years, requiring hundreds of billions of USD.

However, the State budget, government bonds and ODA will be able to meet only half of the demand, therefore, it is necessary to attract private-sector and FDI capital, according to ADB.

Deputy Minister of Planning and Investment Dang Huy Dong said Vietnam gives top priority to infrastructure investment and is implementing pilot PPP investment to attract capital from the private sector.

A representative from the Transport Ministry said that several transport projects, including the upgrading of National Highway No. 1, Ha Noi-Lao Cai railway and Phnom Penh-Ho Chi Minh City highway are being implemented by using FDI and PPP capital.

Vietnam is calling for PPP and FDI capital in such highway projects as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau Giay-Da Lat and Ben Luc-Long Thanh, and other transport projects, including Hai Phong international port and HCM City-Can Tho express railway.

Tags: invest in Vietnam, Vietnam FDI, Vietnam FDI 2010, Vietnam investment