Vietnam Listed among Countries with Highest Public Investment Rate

Vietnam is listed among countries worldwide with the highest public investment rate which accounts for up to 10% of the national GDP, said Martin Rama, head of the World Bank’s East Asian Development Office.

 

Rama made the statement at an international seminar in Hanoi on strengthening public investment management in Hanoi on September 8.

 

Infrastructure development is the main factor in the Vietnamese public investment as the country is trying its business environment along with administrative reform and human resources training, he added.

 

The World Bank (WB) official, however, said despite the high spending, the efficiency of Vietnam’s public investment remains low.

 

Sharing the same opinion with Rama, Head of Department of Investment Supervision & Appraisal under the Ministry of Planning and Investment (MPI) Nguyen Xuan Tu said that sluggish implementation of state-funded projects is among major causes of the limited efficiency. 

 

Experts at the conference urged the Vietnamese government to issue a transparent and consistent for the application of the public-private partnership (PPP) model in order to mitigate risks for public investment.

 

Vietnam should also promulgate a law on public investment and set up a provision for this area, they noted.

 

The MPI said that Vietnam spent VND286 trillion (US$14.6 billion) on public investment during the 2001-2005 period, making up over 23% of the national investment for development projects. Total expenditure is expected at VND739 trillion between 2010 and 2015. (vietnamplus, Viet Nation)