Deputy PM urges completion of legal framework for PPP

Deputy Prime Minister Hoang Trung Hai has urged related authorities to push up the finalisation of a legal framework on a draft Government decree defining investment in the form of a public-private partnership (PPP).

The PPP model is considered the most effective and feasible capital mobilisation solution.
The PPP model is considered the most effective and feasible capital mobilisation solution.

The leader, who is also Head of the PPP Steering Committee, chaired a meeting of the agency in Hanoi on December 16.

Deputy PM Hai stated that PPP is a popular investment mobilisation trend that has been used for a long time around the world. For Vietnam, implementing a PPP model is one of the most important directions during investment restructuring, as the country is facing investment difficulties due to limited budgets and an increasing need for investment in infrastructure and social services.

According to the Ministry of Planning and Investment (MPI), after a long period of construction, the draft decree was updated and fully reflected in provisions of the newly-issued legislations such as Public Investment Law, Procurement Law, Investment Law, and Business Law.

Minister of Planning and Investment, Bui Quang Vinh, said that there are a lot of projects, along with potential partners, awaiting a completed PPP framework, in particular the most recent proposal of the Office of former British Prime Minister Tony Blair, on the implementation of a wide range of projects on transportation and waste treatment in Hanoi and Ho Chi Minh City.

Deputy PM Hai asked the MPI to complete the draft before submitting it to the Government for consideration, and promulgation in the shortest time.

He also urged the PPP Steering Committee to choose potential projects to implement in the form of a PPP, particularly large-scale ones, while ensuring successful implementation of these projects for widespread duplication.

"It is possible an electric or transportation project would be suitable. This project must be properly implemented to convince investors at home and abroad that investing in PPP projects in Vietnam is an attractive opportunity.” the deputy PM suggested.

He also noted that related ministries and agencies must calculate the proportion privatised capital in recent years to have more realistic goals for calling on investment in the form of BOT and PPP.