Vietnam will call for domestic and foreign investors to pour their money in electricity, oil and gas, mining and metallurgy projects in order to achieve the annual industrial growth target of 15.2-15.5 per cent over the next five years, Minister of Industry Hoang Trung Hai has said.
"A key issue is how to attract private and foreign capital for developing the industrial sector, particularly for funding major projects," Hai said.
To reach growth targets, the industrial sector would needs an additional investment of VND900 trillion (US$56.25 billion), or 40 per cent of the economy's total capital needs between now and 2010, he said. The State budget could only provide 7 per cent of this figure.
Foreign investors would be invited not only in large-scale projects but also in small-and medium sized ones, especially those in the fields of technology transfer and rural industry, the minister said.
Hai added that "we [Vietnam] must prepare well-qualified human resources, particularly in electronics, information technology, and new materials and technologies. This is an important condition for attracting investors."
Another measure was to hasten the equitization of State-owned enterprises, allowing capital to be raised from the sale of state shares on the stock market, Hai said.
The real estate market also needed to be reformed to make it easier for investors to transfer land use rights and use them as collateral for financing development.
Electrical projects alone would require an investment of VND350 trillion ($21.88 billion) over the next five years, the minister said.
Independent private partnership (IPP) and build-operate-transfer (BOT) projects would contribute 30 per cent of this figure.
Electricity projects are also expected to draw about 21 per cent of needed funds from official development assistance (ODA) and 7 per cent from selling shares. Bond issue would provide a further source of financing.
Under the plan for the sector, projects using ODA and foreign direct investment will be prioritized, with some power plants equitized to provide a further source of funds. Small hydro-electronic plants would be funded primarily through domestic private investors through IPPs.
Characterized by large-scale high-technology projects, the oil and gas sector would give priority to foreign investors, with some projects authorized for 100 per cent foreign investment. The sector would require a total of more than VND200 trillion ($12.5 billion) in capital over the next five years to be raised from profits and bank loans.
Foreign investors would also be allowed to buy shares in mining and metallurgy projects, the minister said. While Vietnamese investors would maintain controlling stakes in mining projects, foreign investors could hold up to 100 per cent in metallurgy projects.
VNA
Vietnamese
