Newly-appointed Transport Minister Truong Quang Nghia said that the transport sector will continue to face major infrastructure development issues given the country's sharply increasing public debts.

Transport Minister Truong Quang Nghia.

"This is a great personal challenge," Nghia said at a press conference on Apr 14.

Vietnam has seen a rapid rise in its public debts in recent years, as it has escalated to the government's payable level of 65%, affecting investment for transport infrastructure. Meanwhile, there remains urgent need to upgrade the transport network.

Vietnam will need around USD48 billion for transport infrastructure projects between 2015 and 2020, but the state budget can only afford to foot 28% of this total bill.

The minister also pointed out thorny issues of the sector which have drawn public concerns over the recent years, including build, operate and transfer or BOT projects, the high numbers of traffic accidents, weak infrastructure in many localities, slow implementation of many projects as well as lack of transparency for the project disbursement.

Over the past few years, Vietnam has seen a decrease in traffic accidents, but the numbers of victims remain high. More than 9,000 people die in road accidents in the country every year, equal to almost 25 deaths per day, and hundreds of thousands of others suffer life-long injuries.

He minister also said that the minister is working on BOT projects-issued issues following public outrage over the high concentration of toll stations in some areas. The existing regulation requires two tollgates on a road to be at least 70km apart, but in some areas the distance is just 50km. In addition, many tollgates have collected fees higher than regulated.

People in several localities, including Quang Binh and Hoa Binh provinces, blocked tollgates to oppose the collection of high fees and the presence of so many tollgates over such short distances.

At the press conference, he vowed to do his best to fulfill his tasks. "We’ll save every cent of the state budget. We’ll focus on key projects effectively, not on massive and wasteful investment," Nghia noted.

The minister said he would review all specific areas of the transport sector and then early inform the government and the public on progress.

Dtinews