The Ministry of Finance and the US Department of Treasury signed a cooperation deal to strengthen infrastructure finance in Vietnam on Wednesday.
The deal aims to mobilise and utilise private capital and develop financial markets to build infrastructure, helping Vietnam achieve its priorities in this area.
The deal includes harnessing the potential of investors; building financing tools that can mobilise, promote and address barriers to private sector investment in infrastructure; encouraging innovation and sustainability; exploiting financial capacity building and technical cooperation programmes; and capital market development.
Deputy minister Tran Xuan Ha said Vietnam’s infrastructure investment demands were high.
“According to a report by the Ministry of Planning and Investment, Vietnam’s infrastructure investment demand for 2017-20 was about $195 billion, of which energy, roads, bridges, aviation, clean water and waste treatment were priorities,” Ha said.
He said the deal would contribute to the formation of policy mechanisms to mobilise capital from the private sector and develop financial markets for infrastructure development in Vietnam, as well as contributing to bilateral cooperation.
Michell Silk, acting assistant secretary at the US Department of Treasury, said the deal would help remove financial barriers.
With the knowledge and experience from both countries, Silk said it would help fill the infrastructure gap over the next five years, reducing financial pressure on the government and attracting more private capital.
To carry out the cooperation framework, the two sides will set up a working group with the US Office of Technical Assistance.
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