Vietnam should strengthen role of private area in urbanization process

Urbanization is an opportunity for groups and private enterprises to join capital contribution for the infrastructure development and investment, Yoshihiko Noda, Japanese Minister of Finance, said at the Governors’ seminar themed Asia 2050: Pursuit of Growth, Sustainability and Well Being” within the framework of the 44th annual meeting of the Board of Governors of the Asian Development Bank (ADB) in Hanoi from May 3 to 6, 2011.

Yoshihiko said 2010 was a historic year of the global urbanization process. As forecasted to 2020, the proportion of people living in urban areas would account for 60-70 percent. Thus, it is necessary to strengthen further infrastructure development to cope with traffic congestion in big cities and deal with carbon emissions.

Yoshihiko Noda also said that Japan is always willing to offer technical assistances on urban railway problems for partners in the region.

Bangladesh’s minister said the population density in urban areas will force the government to stop the population moving. This requires the development of information and technologies, the suitable use of land, and at the same time expands and provides better services to rural areas.

Bangladesh as well as India, Vietnam and other developing countries needs a huge capital source to build urban infrastructure. India needs a capital source of up to $3,000 billion, but this country itself can only meet half of the requirement and the remaining is waiting for the support from foreign countries.

In Vietnam, the biggest problem in the urbanization process is social security. According to the State Bank of Vietnam (SBV)’s governor, Nguyen Van Giau, rapid urbanization means the land of farmers is more and more being dwindled but the compensation mechanism is not fully satisfactory to help people find new income sources.

Posted by VBN on May 5 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