Vietnam raises capital from various economic resources to develop infrastructure

“Basic infrastructure plays an important role in the sustainable development of Vietnamese economy, however Vietnam has to find answers to two problems: where and how to raise the economic resources?”, prime minister Nguyen Tan Dung while speaking at World Economic Forum (WEF) yesterday in HCM City said.

WEF was organised for the first time in Vietnam with the participation of over 400 businessmen and CEOs from inside and outside the country. Especially, attending the forum were prime ministers of five countries Vietnam, Cambodia, Laos, Burma and Thailand.

At the forum, Prime Minister Nguyen Tan Dung confirmed that well-built infrastructure acquires the huge capital source from the government, private companies, enterprises, international community and financial institutions.

“If relying only on the government’s resources, a developing economy like Vietnam will have to face many difficulties to access conditions for infrastructure development,” the prime minister remarked. Vietnam’s per capita income now is over $1,000 per person a year while the budgetary collection by taxes and fees only contributed to 20 percent of national GDP embedded with big expenses for many works, so Vietnam cannot budget too much capital for infrastructure investment. This requires Vietnam to raise investment from domestic and foreign private companies and ODA of foreign countries.

“How to develop the economy sustainably” was the main discussion content of WEF on Eastern Asia yesterday. Specialists gave a general assessment that Eastern Asia’s economic growth in the crisis period of 2008-2009 averaged 7 percent while the world’s was at 3.2 percent, which showed that the region had come through the crisis and is on the gradual recovery period.

Economic growth is moving from West to East, Europe’s economic growth is being narrowed and the position of Eastern Asia region is emerging on the world market. “12 years ago, Asia only produced goods for US and European markets, and now their domestic consumption growth has created promotion for general and comprehensive development”, said Andrei L.
Kostin, VTB Bank President and Chair of the Management Board; Member of VTB Bank Supervisory Council. Hermant Nerurkar-general director of India’s Tata Steel Group remarked, �Accompanying with the positive motives for the economic growth is the nations’ responsibility in maintaining and developing the global economy”.

Prime Minister Nguyen Tan Dung evaluated, the essential trend of the economy at this time is the globalised market. Each nation will have to focus on developing domestic market and also exports.

Vietnam, for example, is the second largest rice exporter in the world so rice export is one advantage of the country. But Vietnam still has to ensure the food security and rice for locals. This means that Vietnam not only gives priority for export but also contributes to the world’s food security.

Vietnam has 87 million people. The figure is increased by 1.1 million a year and could be 100 million people in the near future. To increase the domestic purchase power and expand the local market, the important thing is to keep the economic growth stable. The year 2009 was a tough year for all economies as they were in recession, but Vietnam still maintained growth at 5.3 percent that is expected to be 6.5-7 percent in 2011 and 7-8 percent in 2020.

Vnexpress

Tags: funds for Vietnam infrastructure, Vietnam Infrastructure

Posted by VBN on Jun 7 2010. Filed under Banking-Finance, Economy News, Infrastructure. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry