ASEAN KEY DESTINATIONS
Vietnamese infrastructure investment urged
The conference entitled "Local Authorities and Public-Private Partnerships" was held as part of the French Week in Viet Nam 2010.
Director of the French Development Agency Alain Henry said the PPP had played an important role in infrastructure development in Viet Nam, adding that the use of the model had been a trend throughout the world.
Experts say that around 60 percent of the world population will live in urban areas by 2020 and there has been strong development in Vietnamese cities.
Average infrastructure investment should be US$6-8 per capita in urban areas. Localities should call for investment under the PPP model to pay for development, Alain said.
Deputy Minister of Industry and Trade Tran Tuan Anh said localities had always been an active factor in the country's socio-economic development.
Giving provinces power to map out urban planning themselves, to grant and to revoke investment licences was stipulated in laws and legal documents, he said.
Projects planned by local authorities accounted for 62 per cent of the State Budget's total investment, Anh said.
Investment should be poured into areas which had a rapid urbanisation rate, he said. Because the private sector focused on investing in profitable projects, the Government and localities should create favourable conditions for them to invest in public services, which were not always profitable, he said.
He also said the PPP was a new concept that was not fully developed in Vietnam due to the lack of a solid legal framework.
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