Traffic congestion frequently happens near Tan Son Nhat airport, which will be replaced by Long Thanh airport. Photo: Zing
Vietnam’s National Assembly has approved the public investment plan for the 2016-2020 period under which up to 2,000 trillion dong ($90 billion) will be allocated to investment projects using state capital.
Of the sum, $50.16 billion will come from the central state budget and the rest from localities.
To raise funds for much-needed projects, the government plans to borrow $13.4 billion from foreign creditors, issue $11.64 billion worth of sovereign bonds domestically, and sell shares in some enterprises for $11.2 billion.
On the spending side, up to $3.26 billion will be earmarked for two national target programs that focus on developing rural areas and reducing poverty. Another $3.58 billion will be used for other national projects.
Notably, $224 million will be spent on site clearance for the Long Thanh International Airport, 40 kilometers to Ho Chi Minh City.
The new airport is meant to replace overloaded Tan Son Nhat airport in HCM City
. It is expected to cost over $16 billion and is divided into three phases, with the first one scheduled to start in 2019 at a cost of $5.3 billion.
Vietnam aims at GDP
growth of 6.5-7% in the next five years. The local economy is likely to grow 6.3-6.5% this year, missing the initial target of 6.7%, due to a severe drought and souring external demand.