>> Ministry of Transport admits many projects deteriorate quickly
>> Infrastructure projects lack funds
Vietnam is calling for investment in various projects to develop its transportation infrastructure in the next five years.
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| Transport quality in Vietnam is still far behind those of its regional neighbors. |
The investment capital demand for projects that are directly managed by the Ministry of Transport (MOT) is estimated at VND472 trillion (USD22.62 billion) for the period between 2011 and 2015, said Ms Han Thanh Thao, Senior Official of MOT’s Planning and Investment Department.
Thao addressed this issue at a seminar entitled “Vietnam-Korea Investment and Business Network”, which was aimed at helping Korean enterprises understand more about the policies and investment opportunities in Vietnam. Korea Trade-Investment Promotion Agency together with Financial Times Magazine organised the seminar in Hanoi, on March 10.
Thao said that of the aforementioned sum, around VND210 trillion (USD10.06 billion) is expected to come from the state budget. The investment of VND162 trillion (USD7.76 billion) will be from private sources.
But the ministry has not yet found any sources to mobilise the remaining amount needed, around VND100 trillion (USD4.79 billion), she noted.
According to Thao, transport quality in Vietnam is still far behind those of its regional neighbors, not to mention other countries around the world. Also, transportation infrastructure has not kept up demand, resulting a high amount of traffic jams and accidents.
She added that Vietnam currently has 93 highways and seven main railway routes. In addition, the country now has 49 seaports and 126 river ports together with thousands of locations for cargo loading and unloading.
During the seminar, officials from MOT proposed a number of potential transportation infrastructure projects in Vietnam to Korean investors.
Some potential road projects include Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Ho Chi Minh City - Long Thanh - Giau Day, Ben Luc - Long Thanh, Hanoi - Lang Son, Ha Long - Mong Cai, Ninh Binh - Thanh Hoa and Thanh Hoa - Hà Tinh.
There are also extensive sections of rail routes that are in desperate need of investment, such as Yen Vien - Pha Lai - Ha Long - Cai Lan, Lao Cai - Hanoi - Haiphong, Dong Van - Hanoi, Bien Haa - Vung Tau, Di An - Loc Ninh.
Hanoi and Ho Chi Minh City are also making plans to build additional urban rail routes in the next five years.
In recent years, more and more investors from Korea have came Vietnam for their investment projects thanks to the country’s favourable tax regulations and foreign investment encouragement policies.
As of February 2011, Korea ranked 3rd among countries and territories investing in Vietnam with 2,707 projects with a total registered capital of USD22.3 billion, according to Do Nhat Hoang, Director of the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency.
