The development of PPP model (10/10)
10/10/2012 - 13 Lượt xem
Lord
Mayor of the City of London Alderman David Wootton when visiting
Vietnam on September 22-26 discussed policies focusing on the legal
framework for PPP projects in Vietnam with the Minister of Planning and
Investment Bui Quang Vinh on September 24 in Hanoi.
Minister
of Planning and Investment Bui Quang Vinh said that Vietnam aims to
become a modern industrial country by 2020. To achieve this goal,
Vietnam has a huge demand for capital for infrastructure development.
According to preliminary calculations, each year Vietnam will need
around US$16-17 billion to develop essential infrastructure, whereas
the ability to raise capital from traditional investment channels only
meets about 50 to 60 percent of that demand.
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Vietnam and the United Kingdom established a strategic partnership in September 2010.
The United Kingdom is one of the major providers of ODA for Vietnam with a commitment of GBP70 million in the 2011-2015 period.
In
terms of FDI, the UK ranks seventeenth in 96 countries and territories
investing in Vietnam with 160 projects with total registered capital of
over US$2.68 billion.
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In
order to resolve this problem, Vietnam has launched measures to
mobilize national and international private resources to invest in
infrastructure. In terms of policy, the Government issued Decree
108/2009 /ND-CP on investment in the contacts of Build-Operate-Transfer
(BOT), Build-Transfer-Operate (BTO) and Build-Transfer BT and Decision
71/11/2010 on promulgating regulations on experimental PPP investment
forms.
Public
Procurement Agency of the Ministry of Planning and Investment director
general Le Van Tang said that Vietnam faced difficulties implementing
PPP policies due to an incomplete legal basis and uneven awareness of
PPP awareness among ministries, sectors and localities. PPP projects
require large capital and long deployment periods, whereas domestic
capital remains limited and the ability to access capital in the
international market has proved difficult due to the global economic
recession and debt crisis in Europe.
Alderman
David Wootton said that Vietnam had built a basis for PPP in terms of
its legal documents. However, in order to attract private investors to
participate in PPP, Vietnam must continue perfecting this framework in
accordance with international standards. Moreover, Vietnam should
establish groups that will be responsible for PPP and create clear
financial guidance. Alderman David Wootton also confirmed that the UK
had a lot of experience in the implementation of PPP model, providing
consultancy to a half of the world's PPP projects. Therefore, the
United Kingdom was ready to support Vietnam in the process of working
out the plan to raise capital.
Allen
& Overy lawyer Adam Moncrieff said that to successfully implement
PPP models, Vietnam must have a simple and convenient legal framework
that meets international standards. Legal frameworks also need to have
the stability to create confidence for investors when investing in
Vietnam in PPP. In addition, it is necessary to optimize financial
resources by establishing a specialist agency to monitor procurement
activities and promote the progress of project implementation.
Tom
Nguyen, head of Standard Chartered Bank in Vietnam, Cambodia and Laos'
Legal Department said that to improve the economy, Vietnam needs
capital. However, in order to raise capital for the construction of
infrastructure projects, Vietnam needs transparency in its licensing
procedures. Moreover, it remains necessary to simplify complex
procedures in order to increase the attractiveness for private
investors.
Vietnam should accelerate ground clearance for infrastructure projects since so many infrastructure projects are needed in Vietnam.
Another
challenge for Vietnam is the scale of infrastructure investment
projects, including port and airport building projects. They need huge
capital, while returns on capital take between 20 to 30 years.
Therefore, there should be a legal basis to allocate risks. In
addition, Vietnam needs investment funding to provide capital for
projects./.
Source: VEN
Source: VEN
