Posted on 23 November 2007

 

Source: BVOM, November 22, 2007
With an average economic growth rate of 9 percent in 2007, demand for infrastructure development must double economic development. If not, infrastructure will be an obstacle, said Deputy Minister of Planning and Investment Le Bich Dat.

Speaking at a seminar on Vietnam’s infrastructure in 2007 held in Hanoi on November 21, he said that the Vietnamese Government has made great efforts in locating funding, but the State budget has failed to fulfill investment requirements for infrastructure development.

According to Dr. Nguyen Manh Kiem, Chairman of the Vietnam General Construction Association, Vietnam has poor and small-scale infrastructure that fail to meet technical requirements, particularly in the transport network. The country lack deepwater ports and modern urban transport networks in big cities. Its transport infrastructure is still below the average level compared with other countries in the region, he said.

In addition, electricity supply cannot meet the demand of industrial centres, while expenditure for electricity and telecommunications remains high.

Experts said that there is a huge potential for investment in infrastructure. The country needs up to US$67 billion by 2010. Volker Edner, first secretary of the German Embassy in Vietnam, said infrastructure plays an important role in Vietnam’s economy. In recent years, the country has achieved rapid development, but infrastructure could not meet the demand for such a pace. The Vietnamese Prime Minister’s approval for a list of projects calling for foreign investment till 2010 showed that Vietnam needs more investment capital. This is a good opportunity for foreign investors, he added.

Participants in the seminar also discussed issues relating to new technologies, urban zoning, construction, public transport and waste water treatment.

 

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