return icon Vietnamnet.vn

Law on Public Private Partnerships - a breakthrough in investment

Professor Tran Chung, Chairman of the Viet Nam Association of Financial Investors, talks about advantages the Law on Public Private Partnerships will offer investors.

 

 

{keywords}

Professor Tran Chung

 

 

What will be the main advantages of the Law on Public Private Partnerships when it comes into force?

Investors hope the Law on Public Private Partnership (PPP Law) will provide a level playing field for all investors, regardless of their social status.

They also hope the law will reduce risks that might occur for project investors. The nature of a PPP project is shared risks between the State and the private sector.

It is common knowledge that most of our investment projects in road construction have faced many risks, as the projects' returns budget depend on the volume of vehicles using the road – a factor which has always been subject to change. Another risk I want to mention is changes in Government policies. The Deo Ca (Ca Pass) in central Viet Nam is an example. According to the original plan, the Van Phong area would become a Special Economic Zone, while Vung Ro would become a concentrated economic zone. But now things have changed and the traffic volume through the Ca Pass has dropped to 40 per cent of the original projection target. Coupled with that, there are many other risks hanging over investors.

The other point I want to mention is that when the PPP Law comes into force, people expect the general public will feel more confident in investing in a PPP project – their investments may account for up to 60 per cent of a project's total, while the share from the investor would be about 20 per cent.

Besides, when the PPP Law comes to life, its mechanism on investment mobilization will be much more liberal than the old mechanism.

Will you please explain about the investors' roles in a PPP project?

In a PPP project all investors are key players. They are also the project’s implementers. That’s why Government agencies and private investors both have the same rights and responsibilities. This is an economic contract, so all players must be equal before the law.

It's common international practice for infrastructure projects not to depend on bank capital but on the issuance of Government bonds. Should Viet Nam apply this method for PPP projects?

Many countries have experienced many lessons from PPP projects, particularly when they have leaned too much on credit from banks. It is a common practice for commercial banks to mobilise money through short term deposits while the money they lend to their customers is based on long term contracts.

This means the banks have accepted the risks on their side. In many countries, for example in Great Britain, banks have joined an alliance for their lending activities to share the risks together. In South Korea, they mobilise capital from society through various funds, like the Fund for the Development of Transport Infrastructure, and they have successfully mobilised quite a lot of money. I hope Vietnamese investors in PPP projects will learn from other countries. — VNS

National Assembly debates draft law on PPP

National Assembly debates draft law on PPP

Most National Assembly (NA) deputies agreed on the need for the draft Law on Public-Private Partnership to finalise a legal framework of this type of investment and improve the effectiveness of long-term public-private partnership (PPP) projects.

Transformation ahead in PPP investment risk mechanisms

Transformation ahead in PPP investment risk mechanisms

Long-standing concerns could be solved in the latest version of the draft Law on Public-Private Partnerships ahead of National ­Assembly discussions.

MORE NEWS

HCM City faces shortage of teachers at all levels

The Ho Chi Minh City People’s Committee has held a press conference to provide information about socioeconomic issues and epidemic prevention and control in the city.

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.
back_to_top