Vietnam Should Boost Infrastructure Investment: Analysts

Vietnam should pour more investment infrastructure development draw a bigger foreign investment inflow in the current global economic, said an expert from the U.S.-based PriceWaterhouseCoopers Capital (PwC) said.

 

Since 1996, the annual infrastructure investment is some 10 per cent of the country’s GDP, said Andrew Hong at a forum between Vietnamese and the U.K. businesses held in Ho Chi Minh City February 24.

 

He added that, "If you look at World Bank standards, infrastructure investment should be double GDP growth at about 15 per cent”.

 

But Hong said Vietnam needs raise private investment to develop infrastructure, not mostly depend on ODA and the government funding. By 2010 the government's share is expected to decline to 23 per cent of total infrastructure spending, while private investment will rise to 44 per cent.

 

Meanwhile, Paul Hoogwaerts, Vietnam representative of Maersk, the world's top shipping firm, also said Vietnam's economy is heavily dependent on exports, which represents 70 per cent of GDP in 2008. But exporters have long complained about inadequate transportation infrastructure as this makes it difficult for their goods to reach customers in Europe and the U.S. (Vnbusiness)