With a 7.1 percent growth rate in 2018, Vietnam’s fast-paced economic development is boosting demand for infrastructure, the World Bank Vice President for Infrastructure Makhtar Diop said, during his first visit to the country. According to World Bank estimates, Vietnam’s sustainable infrastructure needs will require investments of up to US$25 billion per year.
Currently, about two-thirds of Vietnam’s infrastructure spending come from public resources. Diop emphasized that financing needs of the magnitude faced by the country now cannot be borne by the public sector alone. Increasing efficiency in public investments and establishing the right conditions to crowd in private financing in infrastructure development are important parts of the solution to infrastructure development.
During his three-day visit, Diop had fruitful discussions with leaders of the central government, cabinet members, the National Assembly, and local governments. During his meeting with Prime Minister Nguyen Xuan Phuc, Diop congratulated Vietnam for the country’s rapid growth while maintaining broad equity and urged the Government to share its development success stories with other peer developing countries that are facing similar challenges.
According to Diop, strong and quality investments in infrastructure will be key to sustain Vietnam’s economic growth in the medium and long terms. He praised the efforts to plan and prioritize national backbone infrastructure systems, including expressways, railways, and inland waterways; as well as sub-national infrastructure in key areas such as urban transport/mobility and wastewater treatment; and regional integrated infrastructure that promotes economic development as well as address emerging challenges such as climate change.
The World Bank official also stated the Bank would stand ready to provide financing and technical support, as well as assist in mobilizing private sector resources, to help Vietnam develop its critical infrastructure.
Original source: World Bank
Published on 22 February 2019
