Posted on 23 Nov 2007
Vietnam's infrastructure plays a key role in economic development
With an average economic growth rate of 9
percent in 2007, demand for infrastructure development must
double economic development. If not, infrastructure will be an obstacle, said
Deputy Minister of Planning and Investment Le Bich Dat.
Speaking at a seminar on Vietnam’s
infrastructure in 2007 held in Hanoi on November 21,
he said that the Vietnamese Government has made great efforts in locating
funding, but the State budget has failed to fulfill investment requirements for
infrastructure development.
According to Dr. Nguyen Manh Kiem, Chairman of the Vietnam General Construction Association, Vietnam has
poor and small-scale infrastructure that fail to meet technical requirements,
particularly in the transport network. The country lack deepwater ports and
modern urban transport networks in big cities. Its transport infrastructure is
still below the average level compared with other countries in the region, he
said.
In addition, electricity supply cannot meet the demand of
industrial centres, while expenditure for electricity and telecommunications
remains high.
Experts said that there is a huge potential for investment
in infrastructure. The country needs up to US$67 billion
by 2010. Volker Edner, first secretary of the German
Embassy in Vietnam, said
infrastructure plays an important role in Vietnam’s economy. In recent years,
the country has achieved rapid development, but infrastructure could not meet
the demand for such a pace. The Vietnamese Prime Minister’s approval for a list
of projects calling for foreign investment till 2010 showed
that Vietnam
needs more investment capital. This is a good opportunity for foreign
investors, he added.
Participants in the seminar also discussed issues relating to
new technologies, urban zoning, construction, public transport and waste water
treatment.
