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Experts call for legal support of public-private model
International experts have called on Vietnam to issue a complete legal system to support the public-private alliance as a major solution to financial problems in major infrastructure, cultural and social projects.
They made the call at an international workshop on the Public-Private Programme (PPP) held in Hanoi on September 12 under the co-sponsorship of the Ministry of Planning and Investment (MPI) and the US Agency for International Development (USAID).
The experts pointed out that Vietnam has so far largely used State budgets and foreign official assistance (ODA) to invest in major development projects, especially in infrastructure which usually absorb huge investments.
However, the State funding is limited while ODA use would pose increasing debts for the Government, driving Vietnam into a dilemma, they explained.
Therefore, the country has to seek other practical solutions, of which PPP would be a good choice, they advised.
The Ministry of Planning and Investment said the country has promulgated a number of regulations on the public-private relationship but they are lacking in both coverage range and consistency, resulting in delay and difficulties in implementing PPP projects in the form of BOT (Build-Operate-Transfer), BOT (Build-Transfer-Operate) and BT (Build-Transfer).
The country has over the past decade licensed some 80 BOT and similar projects capitalised at 90 trillion VND (5 billion USD), including eight foreign-invested BOT and BT projects with a combined registered investment of almost 1.8 billion USD but just 700 million USD has been disbursed.
Deputy Minister of Planning and Investment Truong Van Doan said the MPI is researching international laws and practice and consulting foreign experts with the aim of developing a legal framework for PPP that works best for Vietnam.
VNA
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