PPP form encouraged for infrastructure development

Infrastructure bottlenecks are considered to be one of big obstacles in Vietnam’s economic development.

Commenting on this, Jim Winkler, director of USAID-funded Vietnam Competitiveness Initiative (VNCI) project said Vietnam’s Global Competitive Index (GCI) for the period of 2009-2010 was downgraded five steps to 75th position as compared with the previous report. In which, regarding the second important factor among 12 keys making GCI Index, Vietnam stood at 94 grade as only reaching three points against total seven points.

A latest survey showed that the route from factory to centre of a medium-sized province/city is usually blocked in 7-8 days a year by floods and landslide, 71 percent of enterprises said their products were damaged because of bad road quality that caused a loss of about $2,300 for each firm. Also, on average, enterprises have to suffer a power cut lasting total 29.27 hours a month and telephone network disconnection time of 8.23 hours a month.

But infrastructure investment requires a huge capital volume, so many countries namely Korea, Philippines, Mexico, Australia and Peru have called for the participation of private sector on the basis of Public Private Partnerships – PPP form.

PPP form is not only applied in road investment and construction but also expanded to airport development.

In the past time, about 80 percent of flights and 85 percent of cargo load were transported by three major international airports of Lien Khuong (Da Nang), Noi Bai (Hanoi) and Tan Son Nhat (HCM City). Presently Vietnam is offering the strong investment attraction policies in airport construction and upgrading.

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Posted by VBN on May 20 2010. Filed under Infrastructure. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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