Search for capital to upgrade country’s infrastructure

Looking for investment capital sources to develop the country’s infrastructure is a huge challenge for Vietnam and the country needs to weigh up the model of public private partnership (PPP) when upgrading its infrastructure, said the International Financial Corporation (IFC) Regional Manager for Vietnam, Cambodia, Laos and Thailand, Simon Andrews.

The mid-term Consultative Group (CG) Meeting will be held in the southern province of Kien Giang on June 9. Addressing on the threshold of the meeting, the World Bank’s Country Director for Vietnam, Victoria Kwakwa who will co-chair the event said that the meeting will focus on priority areas such as developing human resources, reforming institutions and improving Vietnam’s infrastructure in the country’s five-year plan for socio-economic development (2011- 2015).

Mr. Andrews said that to implement PPP effectively, Vietnam needs to focus on the three criterion including solving conflicts of interest between the State and private sectors, introducing stable policies and developing the capital market.

A WB Procurement Specialist, Kofi Awanyo said that Vietnam has one of the slowest rates of disbursement in the region, due to the differences in bidding regulations between Vietnam and donors.

To address this issue, the Bidding Management Department of the Ministry of Planning and Investment has asked all the agencies involved in ODA-funded projects to priotise their donors’ requirements. This is stipulated in article 3 in Vietnam’s Bidding Law, under which if there are differences in bidding regulations, Vietnam will have to abide by the agreements signed with its donors.

VOV

Tags: Vietnam Infrastructure