Nearly half trilliondollars needed foressential infrastructure

nearly half trilliondollars needed foressential infrastructure hinh 0

However, rising GDP has not translated to improved state finances and analysts estimate the country now needs at least US$480 billion over the next four years to fund essential infrastructure.

If the spending does not go through, analysts say Vietnam risks growth-restraining bottlenecks in logistics and transport, an obvious point to anyone who has ever been stuck in a Ho Chi Minh City traffic jam.

Such projects include a US$16 billion new airport for Ho Chi Minh City; a US$14 billion highway linking the southern financial hub to the capital Hanoi; and mass transit metros for both cities.

The government is presently weighing its options, says the Asia Times, as current inflows of foreign direct investment are vastly insufficient and don’t even come close to meet the massive amounts of money needed.

For the first half of 2017 the government says it received US$7.7 billion in foreign direct investment, says the Asia Times,and at that rate it would take more than 30 years to raise the nearly half trillion dollars needed.

Based on its own estimates, says Asia times, the government can contribute about one-third of the US$480 billion needed in coming years; the rest, officials acknowledge, will have to come from the private sector.

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