Hanoi, September 7, 2015 - The Joint Stock Commercial Bank for Investment & Development of Vietnam (BIDV) cooperated with Vietnam Institute of Economics to organize a workshop at Grand Plaza Hanoi on the theme: “Capital for transport infrastructure development: Needs and Solutions” to analyze and evaluate Vietnam’s transport infrastructure issues and propose solutions.

More than 200 researchers from State and government agencies, infrastructure development businesses, policy makers, international organizations and media attended.

​Transport infrastructure - the lifeblood of an economy - determines the prosperity of every country. In the past, transport infrastructure development was assigned to the government. The institutional reforms in recent years have laid the foundation for the private sector to participate in transport infrastructure development though the scope and level of participation remains limited.

The need to develop a modern and synchronous transport network that meets the economic development requirements in the coming time will rise. Given the limited financing from budget and budget-related sources (ODA, government bonds), and public debt risk management and public investment efficiency requirements,  breakthroughs in institutional policies to involve local and foreign private sector in developing transport infrastructure in Vietnam should be made.

Four main topics at the workshop include: first, capital for transport infrastructure development in Vietnam: current situation and issues; second, strategy and plan for future transport infrastructure development; third, the demand for transport infrastructure development capital; and fourth, socialization in transport infrastructure investment and development: models, principles and measures.

BIDV is not only pioneering in providing credit for transport infrastructure projects but also actively involved in providing consultancy, comprehensive and long-term financial strategies for transport development.

BIDV proposed some strategic solutions to the transport infrastructure capital issue. A mechanism should be developed for local and foreign financial investment funds and State Capital Investment Corporation (SCIC) to invest capital in infrastructure development projects. Establishment of a financial company or assigning a local financial institution to act as a focal point to mobilize funds from various sources to provide loans to transport infrastructure projects should also be considered.

The bank also proposed to diversify channels for mobilizing long-term capital dedicated to transport infrastructure development, gradually reducing dependence on credit institutions. Policies should also be in place to attract foreign investors to invest in transport infrastructure projects.

For further information, please contact:

Branding and Public Relations

Bank for Investment and Development of Vietnam JSC

Tel: (+84)4. 22205256; Fax: (+84)4. 22225316