The Vietnamese government last week released a wish-list comprised of 127 national projects in need of foreign direct investment, mostly focused on infrastructure, to support economic growth through 2020.
The list was selected by the Ministry of Planning and Investment (MPI) following an order by the government last year aimed at encouraging foreign direct investment (FDI) inflows into the country.
The list reveals Vietnam’s plan to lure more than $60 billion from foreign investors to important projects, covering a wide range of sectors, from infrastructure and education to agriculture and processing. Half of them are in the infrastructure sector.
The list also reflects the government’s prioritisation of infrastructure development as it is believed to act as a motive force for the nation’s economic growth and create a knock-on effect of enticing more FDI to the other sectors such as services and industrial manufacturing.
The most noticeable projects include the $1.8 billion Ninh Binh-Thanh Hoa route, the $1.7 billion Noi Bai-Halong road, the $3.5 billion Dau Giay-Lien Khuong motorway and $1.3 Trung Luong-My Thuan link, as well as the $5 billion Bien Hoa-Vung Tau railway, $5.6 billion Long Thanh International Airport and Van Phong deep seaport.
The Vietnamese government has also called on investment for urban transport projects in Hanoi and Ho Chi Minh City, such as skytrains and metros, and industrial parks, hi-tech parks and hi-tech agricultural parks.
“These projects are considered to boost the Vietnamese economy and if the country successfully attracts foreign investment into them, the infrastructure and workforce bottlenecks are likely to be resolved,” said Nguyen Mai, President of the Vietnam Association of Foreign Invested Enterprises.
Poor infrastructure has been a significant long-term barrier to the nation’s economic growth. Mai said the newly introduced list was suitable to Vietnam’s sustainable strategy, which starts with the development of the infrastructure system.
“The government has already given options to new investors, and now what they want to see is how it will support them in investing into these projects,” said Mai.
Upon release of the list, the government ordered the MPI to co-operate with other governmental bodies and municipal and provincial authorities to give more details and also design incentive policies related to these projects.
To prepare for calling on investment into the projects, the MPI is also proposing the government to amend the legal framework on public-private partnership, to offer flexible options supported by the government to private investors in infrastructure projects.
MPI Minister Bui Quang Vinh confirmed that the amended legal framework would be issued within this year.