The Ministry of Transport has undertaken great efforts to foster the private public partnership (PPP) model with the goal of mobilising some 1,000 trillion VND (46.7 billion USD) for transport infrastructure during the 2016-2020 period, according to Nguyen Hoang, Director of the ministry’s Department of Planning and Investment.

The ministry has developed effective approaches to facilitate the participation of enterprises in developing the traffic infrastructure system, said Ho Minh Hoang, Director General of the Deo Ca Investment Joint Stock Company. Officials have actively worked with local authorities to address difficulties facing the site clearance of each project, Hoang added.

“The ministry has done a good job in laying out the carpet for investors. Without such mechanisms, the sector would not have been successful in attracting such a large amount of investment within such a short period,” said the Deo Ca Company executive.

Between 2013 and 2014, the sector successfully called for 137 trillion VND (6.3 billion USD) for 44 projects, easing the burden of the State budget and ensuring work has proceeded as planned, the Department of Planning and Investment Director said.

Meanwhile, Vice Chairman of the National Assembly’s Committee for Economic Affairs, Nguyen Duc Kien, hailed the significance of administrative procedure reforms conducted by the ministry in drawing social resources.

The ministry has made information about traffic infrastructure development projects public and transparent, raising trust among investors and ultimately encouraging them to invest, Kien commented.

So far, a wide range of modern traffic infrastructure systems have been comprehensively completed and brought into operation, facilitating transportation, trade exchanges, economic development and national modernisation.

In 2015, the completion of the upgrades to the National Road 1 and the Ho Chi Minh Road across the Central Highlands have created great impetus for socio-economic development.

Most recently, the Co Chien bridge, built using the BOT (build-operate-transfer) model, was open to traffic in the Mekong Delta province of Tra Vinh on May 16. It has helped shorten the distance between Tra Vinh and Ho Chi Minh City by 70 kilometres.

According to the sector’s development plan through to 2020, some 200 trillion VND (9.2 billion USD) is needed each year for transport projects, of which the public budget is expected to cover between 30-40 percent.-VNA