Another VND480 trillion (USD23.4 billion) will be needed to develop the nation's transportation infrastructure between now and 2015, Prime Minister Nguyen Tan Dung told a recent meeting of the Ministry of Transport in the capital city.

Thang Long Highway, one of Vietnam's longest and most modern, opened to traffic on September 29, 2011.— VNA/VNS Photo Huy Hung

Dung urged the transport sector to step up efforts to mobilise investment from private resources for infrastructure development.

The Government would continue to tighten public spending in 2012, requiring funds for major projects to be raised through a sound long-term plan for privatising infrastructure development with the participation of different stakeholders, Dung said.

Deputy Minister of Transport Truong Tan Vien told the meeting that the ministry would continue to allocate capital to major projects in accordance with its five-year plan for 2011-15.

However, he said the ministry would do its best to mobilise various resources and create favourable conditions to attract investment from foreign and domestic sources, including bond issues, public-private partnerships and build-operate-transfer (BOT) contracts. Vien also asked the Government to issue regulatons on transferring, selling or leasing transportation infrastructure works, as well as build-transfer (BT) contracts.

Regarding the use of official development assistance (ODA), Vien told the meeting that his ministry had agreed with foreign donors that ODA funds would mainly be used in major projects as Government contributions to PPP projects.

"To attract investors, including foreign investors, the Government should also issue preferential policies, including exemptions from value-added tax and other taxes when the projects are commissioned," Vien said.

He asked the Ministry of Natural Resources and Environment to co-ordinate with the Ministry of Finance to help his ministry hasten the process of land clearance for projects to avoid delays.

Vien said that, between now and 2015, his ministry would build or upgrade 6,000km of roadway, of which 600km would be highways. Another 150km of railway and 12.5km of port berths would be built, he added.