Vietnam needs $160b for infrastructure development: EuroCham estimates

Representatives of foreign and Vietnamese business community on May 27 in Hanoi met with the representative from the Vietnamese government to discus on business and investment environment within the framework of Vietnam Business Forum co-held by Vietnamese Ministry of Planning and Investment (MoPI) and International Finance Corp-IFC (under the World Bank-WB).

According to Alain Cany, chairman of EuroCharm, Vietnam will need about $160 billion from now to 2010 to develop economic infrastructure and technique including traffic system, bridge and road, power plant, water supply system and waste treatment system.

Alain Cany said that the capital sources from state budget, G-bond and ODA only meet half of the demand and the remainder will come from businesses. However, foreign investors still hesitate because of the complex administrative requirements, lack of transparency in the bidding process, ground clearance takes long time and money.
Especially, regarding the electricity supply, EuroCham urges Vietnam to build a competitive power market prior to 2015. Talking to the press on the sidelines, Pham Hung – Deputy Director of the Energy Department under the Ministry of Trade and Industry-MoIT- said the government has assigned the MoIT to set up interdisciplinary group to negotiate the electricity prices. “When there are difficulties in negotiation between EVN and investors, the issue will be reported and considered by MoIT. But until now, the interdisciplinary group has not received any proposals for intervention from investors” Hung said. – Vietbiz24

Posted by VBN on May 30 2011. 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