ID :
21427
Fri, 09/26/2008 - 12:00
Auther :
Shortlink :
http://m.oananews.org//node/21427
The shortlink copeid
Gov't moves to stimulate FDI flow into transport
Hanoi (VNA) - Prime Minister Nguyen Tan Dung has asked the Ministry of Transport to accelerate preparations for several major road projects in order to encourage the flow of foreign direct investment (FDI) into this field.
Under a PM official dispatch, the ministry is permitted to assign
consultancy contractors for projects to build belt roads No. 3 and 4 in Ho
Chi Minh City and expressways to link Quang Ngai-Quy Nhon, Nha Trang-Phan
Thiet, and Dau Giay-Lien Khuong in the south.
The ministry has also been given the go-ahead to put into place a number of
projects to facilitate investment in the construction of Ninh Binh-Nghi Son,
Nghi Son-Bai Vot and Dau Giay-Phan Thiet highways.
Tong Quoc Dat, Deputy Director of the Department for Infrastructure and
Urban Development under the Ministry of Planning and Investment (MPI), said
that Vietnam requires 118 trillion VND (7.4 billion USD) each year to
develop transport infrastructure.
However, the annual amount of capital invested in this area now stands at
between 2-3 billion USD, most of which is sourced from the state budget and
government bonds, Dat said.
According to the MPI's Foreign Investment Department, the transport sector
attracted just 45.6 million USD in FDI in the first eight months of this
year, accounting for 1 percent of the country's total registered amount.
This poor result is attributed to the government's failure to adopt
attractive incentives for foreign investors in this field. Other
shortcomings, including complicated investment procedures and tardy project
site clearance, are also hindering the influx of foreign investment.
In that context, many local businesses have joined hands with the State to
develop transport facilities. Statistics released by the MPI show that the
transport sector accounts for 95 percent of the 80 infrastructure projects
jointly carried out by the State and businesses under the form of BOT
(build-operate-transfer), with a combined capital of 90 trillion VND (5.5
billion USD).
Industry experts said that, to attract more investment from both at home and
abroad, Vietnam should now focus on building a legal framework in
accordance with international practices and its own conditions, in addition
to a proper supporting policy.-Enditem
Under a PM official dispatch, the ministry is permitted to assign
consultancy contractors for projects to build belt roads No. 3 and 4 in Ho
Chi Minh City and expressways to link Quang Ngai-Quy Nhon, Nha Trang-Phan
Thiet, and Dau Giay-Lien Khuong in the south.
The ministry has also been given the go-ahead to put into place a number of
projects to facilitate investment in the construction of Ninh Binh-Nghi Son,
Nghi Son-Bai Vot and Dau Giay-Phan Thiet highways.
Tong Quoc Dat, Deputy Director of the Department for Infrastructure and
Urban Development under the Ministry of Planning and Investment (MPI), said
that Vietnam requires 118 trillion VND (7.4 billion USD) each year to
develop transport infrastructure.
However, the annual amount of capital invested in this area now stands at
between 2-3 billion USD, most of which is sourced from the state budget and
government bonds, Dat said.
According to the MPI's Foreign Investment Department, the transport sector
attracted just 45.6 million USD in FDI in the first eight months of this
year, accounting for 1 percent of the country's total registered amount.
This poor result is attributed to the government's failure to adopt
attractive incentives for foreign investors in this field. Other
shortcomings, including complicated investment procedures and tardy project
site clearance, are also hindering the influx of foreign investment.
In that context, many local businesses have joined hands with the State to
develop transport facilities. Statistics released by the MPI show that the
transport sector accounts for 95 percent of the 80 infrastructure projects
jointly carried out by the State and businesses under the form of BOT
(build-operate-transfer), with a combined capital of 90 trillion VND (5.5
billion USD).
Industry experts said that, to attract more investment from both at home and
abroad, Vietnam should now focus on building a legal framework in
accordance with international practices and its own conditions, in addition
to a proper supporting policy.-Enditem
