The Ministry of Finance inked a cooperation framework to strengthen infrastructure finance with the US Department of the Treasury in Hanoi on November 6 Deputy Minister of Finance Tran Xuan Ha and Acting Assistant Secretary of the US Department of the Treasury, Michell Silk signed the Cooperation Framework.
The framework aims to mobilise private capital and develop financial markets for infrastructure, thus helping Vietnam achieve its priorities in the field in the near future; developing a bond market with greater liquidity to serve the purpose of infrastructure investment; establishing financing instruments capable of mobilizing, facilitating and addressing barriers to private investment in infrastructure development sector; encouraging innovation and sustainability through sharing best practices on developing financial instruments; utilizing capacity building and technical assistance program in finance sector by focusing on the development of financial instruments, project finance, the local debt market, analyzing government’s obligation towards contingent debt and other issues.
Deputy Minister of Finance Tran Xuan Ha added that the country’s need for investment capital for infrastructure in the coming time is extremely huge. Vietnam will need an estimated 195 billion USD for infrastructure development during 2017-2020.
Energy, roads, bridges, aviation, clean water supply, and waste treatment are important fields. Framework looks to remove barriers in order to increase financial instruments for the debt and capital markets and promote related activities.
The framework demonstrates close ties between Vietnam and the US, eventually improves and removes barriers to enhance efficiency for financial instruments in the bond and capital markets.
Mr. Michell Silk said the agreement heads to improve and eliminate barriers to strengthen financial tools for debt and capital markets and enhance relevant activities to narrow gap and shortage in infrastructure development in the next 4-5 years, thus reducing the Government’s pressures on finance and attract more private capital.
To implement the framework, the two sides will set up a working group, including members representing the two sides’ relevant agencies, and with the participation of the US Office of Technical Assistance (OTA)./.
