Creating a level of playing field for Public-Private Partnership (PPP) is key to improve inclusiveness and quality of public service delivery in Vietnam, meaning the country should strengthen legal framework to engage more private investment in developing public infrastructure and services, making them affordable and accessible for people, especially the poor, says an expert of the Asian Development Bank (ADB) at the launch of the Asian Development Outlook 2014 in Hanoi.
Illustrative photo. The Asian Development Bank today forecast that Vietnam's GDP growth would rise slightly to reach 5.6 per cent in 2014 and 5.8 per cent in 2015.
The Asian Development Outlook (ADO) 2014, launched today, forecast Vietnam’s GDP growth to rise slightly to 5.6% in 2014, picking up further to 5.8% in 2015 with economic recovery in the US and the euro area and as progress is made in addressing domestic banking sector weaknesses. Inflation is expected to average 6.2% in 2014, assuming reasonably stable food production, moderate policy stimulation, and only slight depreciation of the dong. Inflation is forecast to average 6.6% in 2015 as economic activity picks up.
The ADO noted progress on financial sector reforms including stepped up efforts by State Bank of Vietnam to supervise bank lending, merger and restructuring of some weaker banks, and eased restrictions on foreign investment in domestic banks. It also acknowledged the new loan classification and provision standards intended to close the gap with international norms that will come into effect in June 2014.
“Accelerating progress on resolving non-performing loans is likely to require setting firm targets and timelines for closing the remaining gap between national and international standards, as well as strengthening capacity of enforcing agencies,” noted Mr. Tomoyuki Kimura, ADB Country Director for Vietnam, while commending these positive steps.
The ADO also discussed the potential of PPP to be considered as an efficient approach to developing physical and social infrastructure, and delivering benefits to people. It pointed that to date private investment in such crucial infrastructure has been limited. Also, the favored PPP structure often departs from standard international practice and most projects have not been awarded through competitive bidding. However, the ADO commended the Government’s efforts to develop a single legal framework for private sector investment in infrastructure, which is more conducive to facilitating PPP transactions.
“Attracting private investment mainly through PPP, could contribute to funding projects but also help gain access to international expertise and technology that improves the quality of social and physical infrastructure,” said Mr. Kimura. “A sound regulatory framework for PPP can improve inclusiveness and quality of public service delivery.”
Đăng ký: VietNam News