News Room - Business/Economics

Posted on 20 Jan 2009

Vietnam seeks $12 billion for infrastructure projects

The Ministry of Planning and Investment Wednesday announced a list of more than 60 urban infrastructure projects which require an estimated US$12 billion of investment between 2009 and 2016.

 

The projects involve the construction and upgrade of traffic systems, infrastructure, sewage plants and water supply and drainage systems in 15 provinces and cities.

 

Department of Infrastructure and Urban Centers Deputy Director Pham Quoc Tuan Wednesday said 30 percent of the projects were expected to be funded by official development assistance from the French and Spanish governments, the German Reconstruction and Development Bank, the Japan International Cooperation Agency and the Asian Development Bank.

 

The remaining projects will carried out with private sect investment, joint ventures, buil transfer or build-operate-transfer funding, he said.

 

Deputy Planning and Investment Minister Truong Van Doan s that, having set a target of become an industrialized nation by 202 Vietnam recognized the importance developing the country’s infrastructure.

 

In recent years, Vietnam prioritized infrastructure development by pouring some 13.5 percent of i total social investment funding in this field, Doan said.

 

While praising the effective assistance of donors and international organizations, the official said he hoped that investors would continue to explore the investment opportunities offered by Vietnam and make suggestions to help the country improve its investment policies and accelerate administrative reform.

 

The department admitted that the t planning and development of urban infrastructure had not kept pace with socio-economic development and population growth in the country’s major cities, leading to traffic congestion, a waste of potable water s and increased environmental pollution.

 

To tackle these issues, the government recently approved planning schemes to develop the infrastructure in Vietnam’s major cities, including two metro routes planned for Hanoi and Ho Chi Minh City, as well as programs to upgrade the road networks in other major cities.