Vietnam can only meet half of the capital it needs for infrastructure development and will have to seek more invesment from the private sector, according to a report on the government's website.
The country needs US$15-16 billion a year for its infrastructure projects, but the government can only provide $7-8 billion, the report said, citing the Ministry of Planning and Investment.
One form of investment, the public-private partnership (PPP), is seen as one of the solutions, the ministry said.
According to the report, Vietnam plans to pilot the PPP model with 27 projects, including 18 transport and port projects. Four road projects have been selected so far.
Dang Xuan Quang, deputy head of the ministry's Foreign Investment Agency, said the preparation period is usually longer with PPP projects, but their feasibility is higher than projects carried out under other investment schemes.
The government will complete all the groundwork, proposals and feasibility studies for PPP projects. The projects will then be opened for bidding with the help of international consultants, Quang said.
He said there are many other things that still have to be done to facilitate the PPP mechanism, but the government has assured that investors will be protected from any risks that they may face when implementing the projects, including policy changes.