3:26:38 PM | 7/8/2005
The Ministry of Finance has worked out a master plan to set up local development investment funds in order to help cities and provinces across the country mobilize capital for infrastructure projects.
The establishment of a development investment fund for each locality will create a key capital-mobilizing channel for the local authorities to finance basic construction, said ministry officials. Currently,
Under the ministry’s plan, in the first phase, funds will be mobilized from local enterprises to set up infrastructure holding firms. In the second phase, they can issue bonds and develop into finance investment groups.
Such funds need to have legal capital of at least VND100 billion (US$6.3 million), the plan also requires.
To date, only 13 out of 64 cities and provinces across the country have set up a development investment fund. Two have already issued bonds, including
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