The event marked Vietnam’s completion of some basic steps in building a PPP programme and highlighted the WB’s commitment to helping Vietnam establish a market-oriented system for financing infrastructure.
Addressing the seminar, Deputy Minister of Finance Tran Xuan Ha said the state should adopt a policy of combining state and private sources in developing infrastructure. The state shouldn’t invest in those fields where the private sector can do well, he said. Instead, it should participate in projects where the state is needed as an ensuring agency or a contributor of capital. These projects will be implemented under the PPP model, Mr Ha said.
The finance official also told the seminar that the state needs to work out master plans for infrastructure construction by sector and region, giving priority to PPP.
The WB Country Director for Vietnam, Victoria Kwakwa, said pilot PPP projects create mutual confidence between the private sector and investors, which is essential in ensuring the sustainability of the PPP programme. Ms Kwakwa added that the WB Board of Directors has approved a loan programme to help Vietnam pursue its PPP policy.
Over the past two years, the WB has worked to boost private capital inflows into infrastructure projects and help Vietnam conduct pilot projects.
The Vietnamese government considers infrastructure development a key to ensuring continuous and balanced economic growth. However, the country faces many challenges in expanding its infrastructure such as a relatively low number of privately-funded projects and complicated procedures for approving and licensing projects.