Vietnamese Businesses Likely to Have Opportunities to Join PPP Projects in India

“Vietnamese businesses have many opportunities to join the public-private partnership (PPP) projects in India,” emphasized Trade Vietnam's trade counselor in India Bui Trung Thuong at the webinar entitled "India's economic development policy, regulation of public-private partnership in India and opportunities for Vietnamese businesses” recently organized by Vietnam Embassy in India.

At the conference, Dr. Pradhumna Dutt Kaushik, an experienced researcher and consultant on international business issues said that, PPP in India was started in 1853 with the introduction of the Indian Railway Company, but the law on PPP was officially established until 1972. Infrastructure investment projects are financially supported by the government and implemented by private enterprises. Accordingly, the government will support through forms such as one-time financial support, revenue subsidies, guaranteed minimum annual turnover or corporate tax relief.

“The public-private partnership model bolsters the development by attracting investment and human resources from the private sector, and promoting competition and innovation capacity, reducing corruption, waste, the burden on taxpayers. Up to now, there have been 1,824 public-private partnership projects with a total value of about US$327 billion in India,” said Dr. Pradhumna Dutt Kaushik.

Recently, the Indian government has encouraged and strongly developed public-private partnership projects, typically the 1,380km-highway project linking capital New Delhi to the financial center of Mumbai with a total cost of about US$13.5 billion. Once completed, the project will reduce travel time from 48 hours by truck and 24-26 hours by car to 18-20 hours and 12-13 hours, respectively. This is said to be the longest highway project in the world, expected to be completed in March 2023.

Mr. Bui Trung Thuong said that Vietnamese enterprises have many opportunities to join PPP projects in India. Many Indian enterprises are interested in PPP projects in Vietnam in such fields as hydroelectric dams, tunnels, power transmission projects, and clean water supply.

“Vietnam can learn from PPP models in India, there are already a number of Indian partners developing PPP projects in Vietnam," said Bui Trung Thuong.

Forms of PPP are used in cooperation projects in India include BOT (build-operate-transfer); BOO (build-own-operate), BOOT (build-own-operate-transfer), DBF (design-build-finance), DBFO (design-construction-finance-operation), DBO (design-build-operate), BLT (build-lease-transfer), BTO (build-transfer-operate); DBFOM (design-build-finance-operating-management), LROT (lease-renovation-operate-transfer); DCMF (design-build-management-finance), BOOR (build-own-operate-remove); leasing & joint venture; operation & maintenance contract, cooperation agreement.

“Vietnamese Trade Office will support Vietnamese businesses to participate in PPP projects in India and encourage them to submit specific proposals. On that basis, the Trade Office will work with experts and Indian partners to organize suitable programs regarding their proposals,” pledged Vietnam Trade Counselor Bui Trung Thuong.

By Giang Tu, Vietnam Business Forum