Key to solving the problem of national infrastructure capital
On November 25, the Ministry of Finance, in coordination with the Asian Development Bank (ADB) and the Australian Embassy in Vietnam, organized a conference on "PPP Dialogue - Cooperation, Innovation, efficiency".
In the context of Vietnam aiming for rapid and sustainable growth and improving national competitiveness, the need for developing modern infrastructure is very large. Public resources are currently only partly available to meet demand, so mobilizing the private sector is an inevitable requirement.
In his opening speech, Deputy Minister of Finance Tran Quoc Phuong said that in recent years, the policy framework on public-private partnership (PPP) has been continuously improved. The amendment of the PPP Law and related decrees has expanded the investment sector under the PPP method to the maximum, increased flexibility in the financial mechanism - risk sharing, and streamlined the process to create more favorable conditions for investors.
It can be said that after a period of efforts to complete the legal framework, Vietnam is ready to enter a period of strongly promoting the implementation of PPP projects with high spillover effects - Deputy Minister Tran Quoc Phuong affirmed.
Informing at the event, a representative of the Vietnam Road Administration (Ministry of Construction) said that as of before 2020 (when the PPP Law was issued), the whole country had mobilized about 318,857 billion VND to invest in 140 transport BOT projects.
Because these projects were implemented before the promulgation of the PPP Law, the law on investment under the form of BOT contracts still has some limitations, the adjustment of policies, laws and planning in accordance with practical requirements during the implementation of contracts has led to problems in some transport BOT projects, partly affecting the investment attraction environment, affecting the confidence of investors and banks providing credit on investment in transport infrastructure under the PPP method.
After the PPP Law was promulgated, the Ministry of Construction and localities have been implementing about 16 projects under the BOT form, with a preliminary total investment of about 440,000 billion VND. Of which, the mobilized capital for investors is about VND 230,000 billion, the participating state capital is about VND 210,000 billion (accounting for about 51% of the total preliminary investment) - the representative of the Ministry of Construction informed.
The selection of investors in the form of competition is still limited
Speaking at the event, Mr. Shantanu Chakraborty - Country Director of ADB in Vietnam commented that over the past 15 years, Vietnam has made many remarkable progress in building a legal and institutional foundation for public-private partnership.
A very important milestone is the 2020 PPP Law, a document that unifies the entire system of previously regulated regulations into a unified framework. Subsequent amendments in 2024 and 2025 continue to demonstrate the determination of the Vietnamese Government in perfecting the legal system, while reflecting the experiences drawn from practical implementation.
However, there is still a lot of work to do to have more projects that are truly feasible, capable of borrowing capital and effectively attracting resources from credit institutions - ADB representative emphasized.
Mr. Shantanu Chakraborty said that Vietnam's project preparation capacity needs to be significantly improved. Risk allocation is still a big problem for investors and lending institutions. The clarity of the revenue model, the Government's support mechanism and contract implementation are key factors to strengthen investor confidence. Long-term financial options for infrastructure with a large life cycle are still limited.
ADB representative said that the selection of investors in a competitive manner is still limited, especially in the context of the Government prioritizing speeding up project progress to meet growth targets. New areas such as digital transformation, innovation, science - technology and social infrastructure require updated policy and cooperation models, suitable for their own characteristics.
These challenges are not unusual, every country faces when switching from policy design to large-scale implementation. With continuous cooperation, Vietnam can completely overcome and attract more private investment flows in the coming years" - ADB representative affirmed.
