The cooperation framework would support mobilizing capital from the private sector and developing financial markets for infrastructure development, in turn helping Vietnam realize its priorities in the field in near future, said a Vietnamese vice finance minister.
Vietnam’s Ministry of Finance (MoF) on November 6 signed a cooperation framework to strengthen infrastructure finance with the US Department of Treasury.
Overview of the signing ceremony. Source: VGP. |
Vice Minister of Finance Tran Xuan Ha said the cooperation framework would support mobilizing capital from the private sector and developing financial markets for infrastructure development, in turn helping Vietnam realize its priorities in the field in the near future.
The cooperation framework includes five fields: developing a bond market with greater liquidity to serve the purpose of infrastructure investment; establishing financing instruments capable of mobilizing, facilitating and addressing barriers to private investment in infrastructure development sector; encouraging innovation and sustainability through sharing best practices on developing financial instruments; utilizing capacity building and technical assistance program in finance sector; analyzing government’s obligation towards contingent debt and other issues.
Ha said Vietnam has huge capital needs for infrastructure development. A study conducted by the Ministry of Planning and Investment revealed Vietnam would need around US$195 billion for infrastructure development in the 2017 – 2020 period, particularly in the fields of energy, road transportation, aviation, clean water, and waste treatment.
“The implementation of such cooperation framework [with the US] would facilitate bilateral cooperation,” Ha stressed.
Michell Silk, acting assistant secretary of the US Department of Treasury, said the framework demonstrates close ties between Vietnam and the US, eventually improves and removes barriers to enhance efficiency for financial instruments in the bond and capital markets.
Silk expected the cooperation would address Vietnam’s deficiencies in infrastructure development in the next four to five years, relieve financial pressure for the Vietnamese government and attract higher amount of private capital.
As part of the cooperation, the two sides would set up a joint working group with members representing both the US and Vietnam.
Other News
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
- Vietnam’s capital market shows positive signs: Finance Ministry
- Prime Minister urges banks to cut lending rates further
- Potential upgrade to emerging status may pull US$25 billion into Vietnam’s stock market
- Vietnam to finalize legal framework for digital assets in May
- VCCI hosts 14 international investors to study Vietnam's potential
- Enhanced local trade finance in Vietnam: A potential US$55 billion annual trade boost
- Vietnam’s corporate bond market could grow to US$100bn: Finance Minister
- Vietnam’s banking sector set to turn the corner in 2024
Trending
-
Hanoi book launch to mark International Day of Happiness
-
Vietnam news in brief - March 19
-
Vietnam in response to Earth Hour 2024
-
The nostagic beauty of Hanoi streets in sketches
-
Casinos contribute US$370 million to state budget over 5 years
-
Hanoi Times Weekly Podcast - Mar. 16
-
"Get on Hanoi 2024" kicked off
-
Smart City environmental impact assessment approved
-
Get On Hanoi 2024: Exhibitions and artistic performances wow visitors