The disbursed amount of official development assistance (ODA) funds in Vietnam in the first nine months of 2020 stood at only VND26 trillion (US$1.12 billion), equivalent to 32.43% of the year’s estimate.
The first phase of the two runway upgrade projects of Noi Bai and Tan Son Nhat airports are expected to be completed by the end of 2020, and become operational in early 2021.
Hanoi has set up six task force teams specialized in accelerating disbursement of public funds.
Vietnam has already held a number of advantages for smart city development, including a broad coverage of 4G network, high accessibility of IT services and smartphone penetration in the country.
Quicker disbursement of ODA funds shows the government’s responsibility and capability in utilizing funds in the eyes of investors and donors.
The result shows strong improvements in disbursing public funds in the first nine months this year.
Vietnam is determined to have the best transportation system to serve the country’s goal of industrialization and modernization, Prime Minister Nguyen Xuan Phuc has said.
As the disbursed amount between January and August was equivalent to 50.7% of the target, the government is under pressure to spend the remaining 50% in the remaining four months.
The Vietnamese government would still prioritize mobilizing ODA funds and preferential loans for major projects that support Vietnam’s sustainable development.
The Vietnamese government remains steadfast in disbursing the full target amount of VND630 trillion (US$27.26 billion) to aid economic recovery.
Foreign contractors will play an increasingly important role over the next decade, as the new PPP Law signals the government’s intention to attract more private sector investments.
The three sub-projects set for construction in September are sections of Mai Son – National Highway No.45, Vinh Hao – Phan Thiet, and Phan Thiet – Dau Giay.
The move would help form a network of expressways connecting vital routes.
The construction industry grew 4.5% year-on-year during the first six months of 2020, which was higher than the GDP growth rate of 1.8%.
The law is considered a potential game-changer, addressing various shortcomings of the previous PPP legal framework, most pertinently that relating to the allocation of revenue risk.
Foreigners can buy houses from developers of residential projects on the primary market.
With the resumption of key economic sectors' activities, such as manufacturing, services and retail, Vietnam’s economy is accelerating to get back to its normal state.
FDI will play a key role for the expansion of Vietnam’s industrial buildings sector, as Vietnam emerges as a global manufacturing hub, stated Fitch Solutions.
Vietnam should be prepared for a new wave of FDI inflows after the Covid-19 medical issue is resolved, which could be in around one year from now, said CEO of VinaCapital Don Lam.
While the Covid-19 pandemic is exposing Vietnam’s economic vulnerabilities, it is an opportunity for the country to step up restructuring process and address the issue of low productivity.