Vinh pointed to the fact that the State has annually allocated large amounts of its budget for socio-economic infrastructure development projects over the years.

As Vietnam is a developing country and the demand for development investment is increasing, requiring other economic sectors to share the burden with the State, he said.

According to the minister, ministries, agencies and localities need to change the viewpoint that capital for socio-economic infrastructure development is mainly sourced from the State budget.  

He suggested Vietnam open the doors wide to the private economic sector both at home and abroad to encourage their investment in development projects.

The State budget will mainly be used in socio-economic areas, including public welfare, national security and defence that cannot be covered by other economic sectors.

Vinh has just made a fact-finding tour of southern provinces to seek solutions for inactive production and socio-economic development.

The southern localities claimed that limited State budget is the biggest hurdle to implementation of development projects.

Vinh affirmed that it is the State management agencies that create the best possible favourable conditions, citing policies and simplified administrative procedures as typical examples, for non-State sectors to invest in localities.

“We must create the best investment climate to build up investors’ trust and encourage them to engage in infrastructure development projects,” said the minister.

The National Assembly and Government have put forward a score of solutions to support businesses, including tax deferment and exemption, and lower bank interest rates.  

At a working session in HCM City, Vinh and HCM City mayor Le Hoang Quan selected a number of pilot projects to be implemented under the Public-Private Partnership (PPP) model.

An inter-sectoral group of experts will be established to study and make recommendations concerning the implementation of this model to make it more effective.

The PPP model is expected to add fresh impetus to the investment climate in Vietnam.