HCMC urged to rethink fundraising models for infrastructure projects Le Anh HCMC - The government of HCMC, facing budget constraints, needs to find new financing models for infrastructure projects as the city now finds it hard to implement such projects under the build-operate-transfer (BOT) and build-transfer (BT) formats, experts said. Experts made the proposal at a seminar held last week to discuss solutions for the city to find funding sources for costly infrastructure projects in 2016-2021. Figures released by HCMC Finance and Investment Company (HFIC) showed the city will need around VND1,000 trillion (US$44 billion) for infrastructure development by 2030. However, the city’s budget has been overstretched while BOT and BT projects have lost some of their appeal. The city, for instance, lacks cleared land that can be allocated for investors involved in BT projects, and there is almost no room left here in the city to build new BOT road tollgates to recover investment … [Read more...] about HCMC urged to rethink fundraising models for infrastructure projects
Underdeveloped infrastructure
Infrastructure, reform needed to win Japan investment: conference
Vietnam needs to improve infrastructure and reform administrative procedures if it wants to attract Japanese investors who currently favor South Korea and Taiwan, said officials at a recent meeting. Most Japanese investors still prefer investing in other regional rivals as opposed to Vietnam, said the Ministry of Planning and Investment at a conference on Japanese investment in Vietnam. Some 200 Japanese businessmen attended the conference in Japan's Aichi province. Many participants raised questions on investment procedures and several participants spoke about investment in Vietnamese firms that sell Japanese products. … [Read more...] about Infrastructure, reform needed to win Japan investment: conference
Hot incentives in line for cold infrastructure and energy sectors
Hanoi Times - Foreign investors will soon enjoy better incentives when exploring investment projects in Vietnam's cash-strapped infrastructure and energy sectors. An official from the Ministry of Planning and Investment's (MPI) Infrastructure and Urban Development Department told Vietnam Investment Review that his department was drafting a set of measures for Vietnam's wish-lists calling for foreign direct investment in the two sectors."We now have to revise legal policies to allow private participation in infrastructure and energy sectors to identify what obstacles have actually deterred foreign- invested projects in the sectors from becoming a reality," said the official. "The situation is in contrast to the fact that the foreign community is really interested in building new toll roads, ports and power facilities in Vietnam, where the underdeveloped infrastructure network needs billions of dollars in funds every year." The MPI official said that the proposed solutions to raise … [Read more...] about Hot incentives in line for cold infrastructure and energy sectors
Japanese investors unsatisfied with infrastructure in Vietnam
The Hanoi Times - The Japan Bank for International Cooperation's (JBIC) survey in the 2008 fiscal year reveals that Japanese investors continue to worry about underdeveloped infrastructure in Vietnam, particularly roads, ports and power systems. JBIC's survey was compiled based on 620 questionnaires collected from Japanese companies overseas. According to the survey, 2008 is the third consecutive year that Vietnam ranks third among countries and regions that have medium-term business potential, after China and India. Low labour cost is still the main reason why Japanese investors see Vietnam as a country with investment potential. Other elements include market development potential, risk diversification, and abundant human resources. However, according to Matsuda Noriyasu, chief representative of JBIC in Vietnam, many Japanese investors say labour costs in Vietnam have increased and become a new concern. Notably, only 48% of Japanese businesses appreciate the "market … [Read more...] about Japanese investors unsatisfied with infrastructure in Vietnam
Bridge to better infrastructure remains illusive
The Hanoitimes - Business communities are increasingly concerned at the impacts of underdeveloped infrastructure and unskilled human resources on their operations. The message was quite clear. "When Vietnam stands still on infrastructure, Vietnam falls behind," Jocelyn Tran, chairwoman of the American Chamber of Commerce (Amcham) in Vietnam, told the Vietnam Business Forum held in Hanoi last week. She said that the transport infrastructure system in Vietnam had fallen far behind economic growth and was an impediment to those who wished to expand their businesses in the nation. She also warned about the impact the lack of unskilled human resources would have on the nation's economic development. Tran's warnings are not new. Both underdeveloped infrastructure and unskilled labour are seen as the biggest hindrances to Vietnam's socio-economic development. But, her complaints also reflect the fact that many attendees at the forum, who are also captains of industry in … [Read more...] about Bridge to better infrastructure remains illusive