VN seeks investment from Japanese private sector

11:37 AM @ Friday - 06 August, 2010
A Vietnam Business Forum was held in Tokyo on August 4 to call on Japanese businesses, especially private companies, to invest more in infrastructure projects in the Southeast Asian country.

While addressing more than 200 participants, Vietnamese Deputy Minister of Planning and Investment Dang Huy Dong said Vietnam needs 15 billion USD each year to develop its infrastructure systems from now until 2020 to realise its target of becoming an industrial nation.

However, the country is only able to meet 50-60 percent of the required capital, of which 40-50 percent will come from the State budget, the deputy minister noted, adding that’s why the Government of Vietnam is working to adopt more effective solutions and policies, including those regarding the public-private partnership (PPP) to encourage all economic sectors to engage in developing infrastructure projects.

According to the official, PPP has been implemented in Vietnam in different forms such as build-operate-transfer (BOT), build-transfer-operate (BTO) and build -transfer (BT), helping to diversify sources of investment.

In the years to come, the Government of Vietnam will work out PPP policies in line with international practices and meeting criteria in terms of economic efficiency, transparency, market, benefit, equal competition among investors and risk management.

The selection of investors for projects will be conducted through tenders to maximise benefits and create an equal competition for investors both in and outside the country, Dong elaborated.

Statistics compiled by the Vietnamese Ministry of Planning and Investment show that more than 90 projects, including nine foreign-invested ones, with a combined registered capital of 7.1 billion USD have been carried out in the forms of BOT, BT and similar forms. The transport sector accounts for up to 70 percent of the total number of such projects and 95 percent of the investment.

On behalf of the Vietnamese private sector, Dang Thanh Tam, chairman of the Saigon Invest Group (SIG) and co-chairman of Vietnam-Japan Business Forum, briefed the participants on successful projects which are being carried out by private companies in Vietnam such as SGI’s project to build an expressway linking the capital city of Hanoi and the northern port city of Hai Phong and another project of build a 5,000 MW power plant in the Mekong Delta province of Kien Giang of the Tan Tao Group.

He said he hoped that more and more investors from Japan would cooperate with Vietnamese partners to develop infrastructure projects in Vietnam .

At the forum, representatives from the Ministry of Transport, Hanoi and the southern largest economic hub of Ho Chi Minh City presented the transport projects calling for investment in the country in general and the two cities in particular.

Officials from the Vietnamese Ministry of Planning and Investment, which jointly organised the forum together with the Japan Federation of Economic Organisations (Keidanren), cleared up Japanese investors’ questions about investment procedures and obstacles in Vietnam .

Following the plenary discussion, government officials of the two countries co-chaired three symposiums on the development of seaports, railway routes as well as energy, safe water supply and waste water treatment in big cities.

The Vietnamese delegation is scheduled to attend a Kansai -Vietnam Investment Forum and a roundtable conference on the attraction of foreign direct investment (FDI) from the Kansai region which will be held in Osaka city on August 6./.

(Source: en.vietnamplus.vn)


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