Minister of Planning and Investment of Viet Nam, Bui Quang Vinh at the first high-level meeting on starting a dialogue framework for speed up PPP projects between the ministry and Japan Bank for International Co-operation (JBIC), said that Japan bank along with other financial institutions could support the execution of the Public-Private Partnership (PPP) model.
The country was trying to renew public investment in infrastructure development. The country is looking forward to move from heavy reliance on the State budget to mobilisation of private resources, said Vinh. The country's first regulations on PPP were not as prolific as expected.
While the country needed about US$15-16 billion each year for infrastructure development, public spending could only provide about 50-60 per cent, he said.
"The engagement of the private sector in infrastructure projects not only generates economic benefits but can also help improve investment efficiency and project quality," he said, emphasising that PPP could be a driving force for the country's socio-economic growth.
A survey of 160 companies declared that Viet Nam was the fifth-most promising country for overseas business in the medium-term and long-term said CEO of JBIC Hiroshi Watanabe.
Over the last decade, Japanese companies that came to Viet Nam prospered, Wantanabe said, noting that since 2002, the bank provided $8.5 billion for public-private co-operation projects including Phu My 2 and three combined-cycle gas-fired power projects.
However, its funding for other southeastern nations including Thailand, Philippines, Indonesia and Singapore was much more significant.
To attractive investors the country was preparing PPP regulations so that they were more like international ones as Vinh said.
The country faced some interruptions like bureaucracy, awkward administrative procedures, unstable policies, the practice of relying heavily on the State budget, which did not prepare the nation to co-operate with private partners in infrastructure projects, Vinh pointed out.
Therefore, Government-appointed investors, usually State-owned companies take on account many commercial bankable projects which will follow the PPP model.
In the next two years, Viet Nam intended to distribute VND20 trillion ($952 million) to PPP projects which depends upon the performance the projects give.
Representatives from the ministry and the bank signed a Memorandum of Understanding (MoU) to enhance co-operation on PPP.