UK Interested in PPP Projects in Vietnam

Mr David Wootton values the development of the Asian region and sees in the region significant economic drive for the future. Therefore, The UK's Financial and Professional Services sector in general and the City of London in particular is looking forward to assisting Vietnam to develop the financial market. Also according to Mr David Wootton, UK wants to establish closer and stronger relationship with its partners with a view to creating prosperity and development to them. He assumes that Vietnam is currently a country with a central role in the ASEAN region. Vietnam’s financial service has seen rapid development since its integration into the World Trade Organisation five years ago. Mr David Wootton holds a view that Hanoi and Ho Chi Minh city will be among the cities that have the fastest race of development in the time to come.

Mr David Wootton pressed that UK as well as the City of London are always ready to assist Vietnam’s development through PPPs, which will create great opportunities for the two countries’ enterprises to get in touch, exchange experience and cooperate.

 

“The business relationships established in this working trip will partly help realize the ambition in developing business of the two countries’ enterprises. Moreover, it will also increase the two-way turn-over between UK and Vietnam to US$4 billion. The City of London is an ideal place for Vietnam’s enterprises wanting to expand their business with European partners because UK’s capital market is full of international investors and supported by professional financial services and auditing consultation. Moreover, UK’s capital market has high liquidity,” said Mayor David Wootton.

 

Besides, Mr David Wootton shared that enterprises taking part in this working trip have great interest in public investment projects of Vietnam, especially projects in Hanoi and Ho Chi Minh city. Those enterprises have great experience in the design, management and consultation in such projects like seaport, airport, subway, etc. and are willing and able to invest in Vietnam.

 

In response to the comments made by the Mayor of the City of London, Mr Le Van Tang, Head of the Ministry of Planning and Investment's Bidding Management Department, the needed capital to invest in infrastructure in Vietnam is around US$15 billion. While capital from the state budget is limited, the capital coming from private sector through PPP projects plays an important role. In such circumstance, the government issued the 71/2010/QD-TT decision on launching PPP projects, many of which are carried out with the criteria of being able to compete equally and transparently, attract capital from private sector and not impact the public debt. However, quite a few projects have been slowly implemented due to incomplete legal frame and confusing PPP project investment procedure, making it hard to attract capital from private sector. Therefore, to attract more capital from private sector, it is essential that the government amend the legal frame, enhance the capability to carry out PPP projects at basic level and pick up PPP projects able to recover capital to carry out.

Mr Bui Quang Vinh, Minister of Planning and Investment, assumes that in the basement of the strategic partnership between Vietnam and the UK established in September, 2010, advantages in cooperation in issues attracting mutual interest blossom. One of those issues is PPP. Therefore, Vietnamese government wants the UK to continue assisting Vietnam to carry out PPP projects as well as sharing experience and providing resources in the future.