return icon

Ownership, risk-sharing must be clarified in PPP law: experts

Ownership rights and risk-sharing mechanisms must be clarified in public-private partnership (PPP) law to encourage the participation of private investors and ensure efficiency as well as transparency of PPP projects.

Ownership, risk-sharing must be clarified in PPP law: experts hinh anh 1

A toll booth station on Phap Van - Cau Gie Highway which was built under build-operate-transfer practice. (Photo


The draft PPP law is expected to be passed at the 14th National Assembly’s ninth meeting later this month.

According to Tran Chung, Chairman of the Vietnam Association of Road Traffic Investors, the nature of PPP was a fixed-term contract between the Government and a private investor to get the private sector involved in providing public services and products.

Under the latest draft, regulations about ownership rights, obligations of the contract’s entities and how to handle disputes and violations remained vague and needed more consideration, said Chung.

Duong Dang Hue from the Vietnam International Arbitration Centre (VIAC) said the law should clarify the ownership rights of investors in PPP projects, which was important to attract the private investment and ensure accountability. The latest draft ignored this issue, Hue said.

Pham Van Thuong, deputy general director of Construction Investment 194 Joint Stock Company, said in PPP, risk-sharing was the core to attract investors.

Thuong added that investors expected the Government would protect their rights even when there were changes in policies and planning which might cause drops in revenue.

To attract private investors to PPP projects, the Government needs preferential policies in areas like banking credit and lending rates, Thuong said.

Regarding the risk-sharing mechanism in the latest draft, lawyer Le Dinh Vinh from the VIAC said the investor was still at a disadvantage compared to the Government.

Under the draft, when the project earns higher revenue than planned, the excess will be shared between the Government and the investor. However, when the project’s revenue is lower than planned, the Government would share the loss with the investor only when there were changes in policies and planning which affected revenue collection.

Vinh said the mechanism should be given more consideration to ensure balance.

Another important matter in PPP was regulations about handling disputes, VIAC lawyer Nguyen Tien Lap said.

Lap said that in many countries, about 60 percent of PPP projects did not reach the expected targets in terms of financial efficiency, quality and technology. PPP was a way to raise private investment but in fact, the investment was mainly lent by banks and the risks would be on the Government if the investors went insolvent.

Lap said PPP projects should be focused more on the community’s benefits rather than the Government, investors or lenders.

In addition, transparency must be ensured when implementing PPP projects, from selecting investors, raising capital, fee levels, payback period and revenue.

Vietnam, to date, has 336 projects implemented following PPP practice, mainly transport infrastructure projects./.VNS


Saigon Zoo elephant dung used to make paper

A Saigon Zoo member of staff and a group of students are transforming elephant dung into paper.

Future of Hanoi’s 120-year-old Long Bien Bridge unclear

Long Bien Bridge, the iconic bridge across Hanoi’s Red River, has degraded, but no major repair plan has been finalized and its future is unclear.

Information & Communications Ministry works to create modern digital infrastructure

The Ministry of Information and Communications will exert efforts to create a modern and safe national digital infrastructure, and a new space for digital economic growth, and developing e-government towards the building of a digital government.

Vietnamese NA Chairman begins official visit to UK

National Assembly (NA) Chairman Vuong Dinh Hue arrived at Heathrow Airport in London on June 28 (local time), beginning his three-day official visit to the UK.

Vietnam to establish industrial environmental index

The Ministry of Planning and Investment (MPI) has called for the implementation of an industrial environmental index in Vietnam, according to Le Thanh Quan, head of MPI's department of economic zone management.

Rising costs cast doubt on wood companies growth prospects

As wood export turnover is rebounding with rising demand in the domestic market, the revenues of wood enterprises are expected to advance.

Vietnam’s GDP expands 7.72% in second quarter of 2022

Vietnam’s Gross Domestic Product (GDP) in the second quarter of this year was estimated to increase 7.72% year-on-year, higher than the growth rates in the same quarters during the 2011-2021 period.

Danish Crown Prince Couple to visit Vietnam in November

Wind energy and energy efficiency will be in focus during the visit, which will take place on November 1-2.

Spanish university offers well-being courses

Lisa Bevill, Academic Director of the Center for Health, Well-being, and Happiness at IE University of Spain, talks with VietNamNet about the university’s “well-being courses” which set a foundation for students to find “the next best you”.

Health Ministry denies oversupply of Covid-19 vaccines

Duong Thi Hong, Deputy Director of the Central Institute of Hygiene and Epidemiology, has confirmed that the current Covid-19 vaccine supply is only enough to give booster shots.

Domestic air transport sees fast recovery, airlines suffer loss due to rising fuel prices

Vietnamese airlines are suffering losses amounting to hundreds of billions of VND each month due to a surge in fuel prices, according to director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang.

Finding a way to make money from Saigon River

Ho Chi Minh City has the shape of a river city. However, urbanization and arbitrary construction has encroached on and gradually obscured the river.

Vietnam attracts more than 14 billion USD of FDI in H1

Vietnam reached more than 14 billion USD in foreign direct investment (FDI) in the first six months of 2022, announced the Ministry of Planning and Investment (MPI).

Vietnam needs to develop fintech services for SMEs

Vietnam needs to develop financial technology (fintech) services for small- and medium-sized enterprises (SMEs), according to experts.

Local enterprises lack materials due to China's 'Zero COVID' policy

While many exporters and producers had orders for 2022, they are worried about a possible shortage of production materials because of supply disruptions from China.