Vietnam’s Finance Minister Calls for Stronger Financial Support for PPP Projects
At a National Assembly question-and-answer session on November 12, Vietnam’s Finance Minister Ngô Văn Tuấn said infrastructure public-private partnership projects involve long investment periods and high risks. He called for transparent policies and financial support to attract private capital, noting that Vietnam has implemented 69 such projects since its PPP law was enacted in 2020.
On November 12, Vietnam’s Finance Minister Ngô Văn Tuấn told the National Assembly that infrastructure public-private partnership (PPP) projects have long investment periods and carry high risks. Citing the World Bank, he said a project could take about 60 years to recoup its investment. Strict, open and transparent policies are therefore needed to ensure investors receive a reasonable return.
National Assembly delegate Lê Thị Song An of the Tây Ninh delegation asked how state funding for PPP projects would be allocated reliably, particularly how funds would be secured to meet legal commitments to share revenue shortfalls. She warned that a lack of funding could affect project financing plans, investor confidence and implementation schedules.
A National Assembly delegate from the Tây Ninh delegation speaks during the question-and-answer session.（VietVance）
Ngô Văn Tuấn said Vietnam has implemented 69 PPP projects since the PPP law was enacted in 2020, mainly under build-operate-transfer and build-transfer arrangements. Current law caps the state’s capital contribution to a project at 50%. He described arrangements used internationally, including project preparation funds, funds to close financing gaps and infrastructure investment funds that provide long-term capital. To attract private investment, he said, Vietnam also needs to assess project finances carefully and improve its support mechanisms.
Vietnam’s Finance Minister Ngô Văn Tuấn answers questions from National Assembly delegates.（VietVance）
Using a road in a mountainous area as an example, he said financial support would be needed if investors were expected to recoup their investment within 20 years and earn the roughly 12% to 15% average market return cited in his example. This was a hypothetical scenario illustrating a support mechanism. He also said toll roads should coexist with roads the public can choose to use, citing continued maintenance of National Highway 1A after the North–South Expressway begins charging tolls.
Source: VietVance
