Vietnam’s demand for infrastructure development, including transport, energy, and urban development, is huge, while both public investment and official development assistance (ODA) loans are limited.
McKinsey Global Institute forecasts the need for over $2 trillion in investments in road, railway, port, airport, power, water, and telecommunications infrastructure across the ASEAN to maintain economic growth, including $770 billion for Indonesia, $317 billion for Vietnam, $310 billion for Thailand, $290 billion for the Philippines, and $277 billion for Malaysia.
By sectors, each power, roads, and telecommunication make up 24 percent of the total infrastructure investment needed across the ASEAN, while another 28 percent is captured by water, railways, airports, and ports.
Nguyen Van Vinh, vice chairman of the Development Strategy Institute (DSI) under the Ministry of Planning and Investment, said: “the quality of Infrastructure and synchronous development has not met the actual demand yet. The socioeconomic development strategy for 2011-2020 states that infrastructure development is one of the three major breakthroughs to be achieved to secure the economic development of Vietnam in the coming time. Therefore, the problems to solve are how to mobilise and manage resources in this sector, improve competitiveness, and welcome new challenges and opportunities.”
To cater for this excessive demand, the Vietnamese government has collaborated with the World Economic Forum (WEF) to establish the Infrastructure Working Group in Vietnam (IWG), strengthening the attraction of infrastructure investment, contributing to Vietnam’s economic development in the era of innovation and Industry 4.0 is approaching and changing the structure of the economy.
At the Vietnam Economic Infrastructure Development Forum that will take place on 25th of September, delegates from Government, MDBs, international organizations and United Nations agencies are going to discuss infrastructure development initiatives and provide best practice guidance.
Original source: VIR
Published on 3 July 2018
