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.
Amid a slowdown in private investments and consumption, expert suggested public spending is essential to spur economic growth and ensure decent living standards for the people.
By changing the form of investment, construction of the expressway could start in the third quarter of 2020 instead of the first quarter of 2021 at the earliest.
Global Infrastructure Hub estimated that Vietnam needs to invest US$110 billion between 2021 and 2025 for infrastructure.
Southeast Asian governments invest more as a share of total government expenditures than member countries of the OECD. Much of that spending goes for infrastructure.
Taking into account the size of the Vietnamese economy, a large proportion of the state budget allocated for infrastructure development would affect the balance of payment and the economy.
There is a growing need to better integrate and connect domestic markets to ensure that any potential slowdown in exports can be offset by higher domestic demand.
This is the second year Vietnam exported such a record-high volume, listing itself a leading cement exporter.