The new assistance will help Việt Nam strengthen public–private partnerships (PPPs), private sector development, and State-owned enterprise (SOE) reform. — Photo vneconomy.vn

HÀ NỘI — The Asian Development Bank (ADB) has approved US$4.6 million for technical assistance to help the Government of Việt Nam strengthen public–private partnerships (PPPs), private sector development, and State-owned enterprise (SOE) reform.

The technical assistance will include policy advice, infrastructure project preparation, and strengthen institutional capacity enhancing sustainable economic growth. The financing includes a $2.7 million grant from the Government of Canada and a $1.9 million grant from the Government of Australia, both to be administered by the ADB.

“Việt Nam has achieved impressive socio-economic development over the past three decades by maintaining high economic growth gained from its structural reforms,” said ADB Principal Private Sector Development Specialist, Donald Lambert.

“To meet the targets of its upcoming Socio-Economic Development Strategy (SEDS) 2021-2030, maintain its growth rate of 6-7 per cent, and achieve the Sustainable Development Goals, Việt Nam will need to further accelerate economic reforms, expanding the role of the private sector in driving the country’s development.”

Việt Nam invested an estimated $117 billion in infrastructure between 2011 and 2020. However, its infrastructure is still underdeveloped compared to its regional peers.

It is estimated that the country will need to mobilise an estimated $237 billion between 2021 and 2030 to close the infrastructure gap or $49 billion more than it is currently slated to spend.

Recognising the potential of the private sector to help close the infrastructure deficit, Việt Nam’s SEDS 2021-2030 prioritises removing barriers to competition and developing an environment conducive to greater investment from the private sector, including a larger role in infrastructure development.

The ADB’s new technical assistance will help by delivering policy advice on PPPs and private sector development, piloting projects fostering the G20 Quality Infrastructure Investment principles, and strengthening the capacity of PPP and private sector institutions. — VNS