Public-Private Partnership model discussed
11:54, 2016/05/12
Local and international experts on May 10 met in Hanoi to discuss enhancing the effectiveness of public investment and measures to minimise risks in the public-private partnership (PPP) model.
Nguyen Dang Truong, Head of the Public Procurement Agency under the Ministry of Planning and Investment, said in past years, transitioning from traditional public investment to the PPP model transformed the role of the public and private sectors.
The PPP model requires an equal balance between the project’s socio-economic benefits for the public and its commercial interests for the investor.
“With that in mind, the sides show change their perception of the new role as well as skills and specific expertise, particularly assessing the effectiveness of the project implemented by traditional investment with those having the participation of the private sector and risk-sharing among parties,” said Truong.
According to initial calculations, the demand for capital for the development of necessary infrastructure in Vietnam is around 40 billion USD each year, with finance from traditional channels fulfilling from 50 to 60 percent of this.
Vietnam will also have to cope with receiving less official development assistance as it has been classified a middle-income country.
Given how new the PPP model is in Vietnam, equipping ministries and localities with the knowledge to assess the effectiveness of PPP projects as well as minimise risks for the project are important.
Truong stressed that to mobilise capital necessary for infrastructure, the PPP model is an effective method and has been included into the government’s action plan.
Besides attracting more capital, the PPP model also brings other benefits such as reasonable sharing between the State and private sector, increased effectiveness in operation and management, better-managed projects, increased accountability and transparency in investment costs.
Ian Hawkesworth, Head of the Organisation for Economic Co-operation and Development (OECD)’s Public-Private Partnerships and Capital Budgeting, said that Vietnam needed to create a clear legal framework to serve as a basis for selecting PPP partners, aiming to increase investment capital value and the transparent use of capital to minimise risks.
At the meeting.
|
“With that in mind, the sides show change their perception of the new role as well as skills and specific expertise, particularly assessing the effectiveness of the project implemented by traditional investment with those having the participation of the private sector and risk-sharing among parties,” said Truong.
According to initial calculations, the demand for capital for the development of necessary infrastructure in Vietnam is around 40 billion USD each year, with finance from traditional channels fulfilling from 50 to 60 percent of this.
Vietnam will also have to cope with receiving less official development assistance as it has been classified a middle-income country.
Given how new the PPP model is in Vietnam, equipping ministries and localities with the knowledge to assess the effectiveness of PPP projects as well as minimise risks for the project are important.
Truong stressed that to mobilise capital necessary for infrastructure, the PPP model is an effective method and has been included into the government’s action plan.
Besides attracting more capital, the PPP model also brings other benefits such as reasonable sharing between the State and private sector, increased effectiveness in operation and management, better-managed projects, increased accountability and transparency in investment costs.
Ian Hawkesworth, Head of the Organisation for Economic Co-operation and Development (OECD)’s Public-Private Partnerships and Capital Budgeting, said that Vietnam needed to create a clear legal framework to serve as a basis for selecting PPP partners, aiming to increase investment capital value and the transparent use of capital to minimise risks.
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
- Foreign companies confirm investment expansion in Vietnam in 2025
- PM invites Skoda to manufacture electric vehicles in Vietnam
- US Berggruen Holdings to help Vietnam set up investment funds
- Vietnam releases Esports White Book 2022-2023
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses