Topic: PPP

Vietnam continues its ambitious infrastructure push with the groundbreaking of a key expressway segment, utilizing a public-private partnership to accelerate completion of the vital North-South corridor.

Three expressways in the PPP form are key transport projects.

The 2017 Global Infrastructure Outlook shows that Vietnam needs more than $600 billion to fulfil infrastructure targets by 2024.

Deputy Prime Minister Le Van Thanh has signed a decision to establish an interdisciplinary appraisal council on the feasibility study of component 2 in the construction of Quang Tri Airport under the public-private partnership (PPP) method. The central province’s airport is on the list of 28 airports in the master plan to 2030 approved by the Prime Minister.

The Ministry of Transport (MoT) has just proposed that the Government submit to the National Assembly for consideration to allocate more than VND13 trillion ($547 million) of state budget to pay investors and businesses and terminate contracts before the project deadline of 8 inadequate BOT projects. According to MoT, completely solving the problems of the eight BOT projects will restore investors' confidence in transport infrastructure projects and free up credit from commercial banks for PPP projects in the coming period.

The Master Plan on the Development of the National Airport Network is to be submitted to the Appraisal Council for consideration and to the Prime Minister for approval in October.

A working group led by Deputy Prime Minister Le Van Thanh will report on a study on converting two military airports into dual-use airports and consider investment by cities and provinces in four airports under the PPP method in the fourth quarter of this year.

Deputy Prime Minister Le Van Thanh chaired a meeting on September 12 with 15 cities and provinces that need to upgrade, expand, or build airports and are seeking investment in the form of public-private partnerships (PPPs). Investment in airport construction, he said, would promote socio-economic development in the locality and also the country. He asked that investors be quickly selected for the construction of Sa Pa Airport in northern Lao Cai province, others in central Quang Tri and northern Lai Chau provinces, and Phan Thiet Airport in south-central Binh Thuan province in late 2022 and early 2023.

The 60-km Dau Giay - Tan Phu Expressway has been approved for construction with total investment of nearly VND8.4 trillion ($356.8 million) under the public-private partnership (PPP) model in 2021-2025. This is the first part of the Dau Giay - Lien Khuong Expressway connecting Lam Dong province with Ho Chi Minh City and southern provinces totaling more than 200 km in length.

Public-Private Partnership (PPP) Working Groups were established by the Ministry of Agriculture and Rural Development in 2010 and were institutionalized into the Partnership for Sustainable Agriculture in Vietnam (PSAV) by 2015. This has contributed to restructuring the agricultural economy, creating 500,000 jobs and improving farmer skills. However, PSAV activities still face many difficulties due to a lack of legal regulations and risks from natural disasters, epidemics, and market fluctuations.