Vietnam Must Spend 50bn on Transport

• 31 December 2015
• Local News
• 1190 Views

Vietnam needs to spend $50bn on transport infrastructure over the next five years to maintain current levels of economic growth, according to the country’s Planning and Investment Department.

“We still have no high-speed rail and our major airports, including Noi Bai, Da Nang and Tan Son Nhat, are overloaded,” said Tran Minh Phuong, the deputy head of the department at a conference in Hanoi. “Our main cities are choked by traffic congestion and rail terminals, seaports and roads are poorly integrated,” he said.

The planning department has calculated that 64 percent should be spent on upgrading the national road system, 12 percent on railways and 10 percent on aviation.

Private sector investors are showing interest as the state budget will pay for less than 40 percent of the required works, which means Public Private Partnerships (PPP) mechanisms will likely be used for the first time in Vietnam.