Government to promote private investment

Thursday, 2018-01-18 17:14:18
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NDO/VNA - The public investment restructuring scheme in 2017-20 will focus on the core sectors of the economy and major projects that will give impetus to socio-economic development and promote public and foreign investments under public-private partnership (PPP) practices.

This is stressed in a project to restructure public investment which has been approved by the Prime Minister.

The project is aimed at forming a rational public-investment structure and improving the efficiency of public investment and public-investment management, while effectively raising and utilising other sources of investment in developing the socio-economic infrastructure system.

Accordingly, the project targets a disbursement rate of public investment of more than 90 percent annually. The sum would be equivalent to 10-11 percent of the country’s gross domestic product (GDP).

Public investment from the State budget and Government’s bonds will prioritise projects in remote mountainous and rural regions, which are often hit by natural disasters.

State-funded investment must be used as bait to raise capital from other economic sectors and create breakthroughs in raising private investment under PPP practices.

The project said that capital from private investment under PPP practices will be focused on important social-economic infrastructure projects, especially in the health and education sectors.

Capital from official development assistance and preferential loans provided by foreign donors will prioritise rural and agricultural projects, projects that aim to improve modern market-economy institutions in line with international practices.

Investments by State-owned enterprises will prioritise sectors in which the State must hold stakes and the investment must contribute to stabilising the macro-economy and creating favourable conditions for other economic sectors.