PM Nguyen Tan Dung speaks at a conference of the Ministry of Transport on Jan. 4. (Photo: chinhphu.vn)
Prime Minister Nguyen Tan Dung on Monday urged the Ministry of Transport to raise funds from non-state sources, including foreign investments, to develop transport infrastructure as state budget expenditures are limited and the nation’s public debt is nearing the upper limit.
“Budget spending and sovereign bond issuance will be restricted to ensure public debt safety. To upgrade our infrastructure, we have no other choice but to attract domestic and foreign investments,” he said.
He attached importance to improving the legal frame work, especially the Public-Private Partnership (PPP) format, to guarantee profitability for investors.
Vietnam has developed some 600 kilometers (km) of expressway over the past five years, including the 245-km Noi Bai-Lao Cai expressway and the 105-km Hanoi-Hai Phong expressway, bringing the total figure to 704 km currently.
The country aims to add between 2,000 and 2,500 kilometers to the expressway network in the 2016-2020 period, the prime minister added.
The nation has raised 327 trillion dong ($14.53 billion) from non-state sources over the past five years, accounting for 86% of total needs in the period. Official development assistance in the period was 6.24 billion.
According to the World Economic Forum (WEF), Vietnam’s infrastructure capacity reached the 67th position in 2015, climbing nine steps from 2014 and 36 from 2010.