Overview on Public
– Private Partnership (“PPP”) Laws in Vietnam
Vietnam’s infrastructure development has struggled to
keep up with continued economic and population growth. According to the
statistics, Vietnam needs about US$170 billion for infrastructure investment in
the period from 2011 to 2020 while the State budget is constrained, capital
sources from state budget and official development assistance (“ODA”) are
estimated to meet only a half of the identified requirements.
In this situation, PPP is the most appropriate mechanism
for Vietnam. In practice, other countries have successfully implemented
partnership between the public and private sector. Put it simply, the idea is
that the public sector has the ‘users’ (or customers) and land and can provide
other incentives, such as tax breaks while the private sector can bring in
technology, capital, and efficiency through experience.