13:41 | 19/03/2017 Investment
The Ministry of Planning and Investment is seeking comments on proposed changes to two government decrees related to investment in public-private partnership (PPP) models.
According to the Ministry of Planning and Investment’s Public Procurement Agency, Vietnam will have almost 600 registered PPP projects during the 2016-2020 period, with total capital of VND250 trillion. PPP investments play an important role in Vietnam’s socio-economic development, especially given the strong development of the Vietnamese economy, but infrastructure is not yet developed in line with local economic growth.
Two years ago, the Vietnamese government issued Decree 15/2015/ND-CP dated February 14, 2015 and Decree 30/2015/ND-CP dated March 17, 2015 to promote PPP investments. However, after nearly two years, many inadequacies have surfaced.
In late February, a workshop was held in Hanoi to discuss amendments and supplements to these directives. Vu Tuan Anh, the deputy director of the Ministry of Transport’s Public-Private Partnership Investment Project Management Department, told participants that the two decrees followed international practices on such issues, and contributed to promoting investment by private businesses and foreign organizations.
However, he conceded that some of the contents are contradicted or overridden by other laws, such as Law on Public Investment, Law on State Budget, Enterprise Law and Procurement Law, presenting difficulties to their implementation.
Nguyen Dinh Tuan from the Ministry of Construction said that to implement the amend Decree 15/2015/ND-CP, regulations related to investment and risk management between investors and the state must be reviewed and improved.
Decree 30/2015/ND-CP, he added, needs to be amended to address issued related to the selection of investors and contractors. The amendments should ensure that investors are able to raise enough capital to implement projects, while contractors must have proven ability to complete a large volume of work.
Nguyen Quynh Le, the deputy director of the Ministry of Planning and Investment’s Public Procurement Agency, said that improving legal documents related to PPP investments is extremely urgent, especially given the limited state budget for infrastructure development. According to a January 25, 2017 document issued by the Government Office, the Ministry of Planning and Investment will collect opinions from ministries, departments and localities to implement the amendment and supplementation to the previous decrees and then submit them to the government and the National Assembly for consideration.