Public-private partnership (PPP) is considered a solution to reduce pressure on the national budget, but this type of cooperation is still facing problems. Therefore, the State needs to have a policy to share risks with businesses.
Mobilizing private capital for PPP cooperation projects faces many difficulties
The average demand for total investment capital of the whole society in the five years from 2021 to 2025 is about 32-34% of GDP. However, the average proportion of public investment capital in 5 years is only about 2.9 million billion VND.
The implementation of social infrastructure development projects under PPP in Vietnam still faces many obstacles. It has negatively affected the PPP investment environment and the implementation of new PPP projects. The number of newly launched projects is still limited. Most of them are transitional projects, focusing on the transport sector, rarely deployed in other fields.
It is difficult to mobilize private capital for PPP cooperation projects. Along with that, the credit market for new projects is increasingly limited. The reason comes from bad debts of transport BOT project enterprises.
It is necessary to ensure the obligations of the public sector in the PPP cooperation contract
Accordingly, the PPP contract needs to have specific content about the state’s implementation of administrative commitments. In addition, there should also be an agreement that the business will be financially supported.
In addition, to promote the PPP cooperation model, a synchronous legal corridor should be created. So the State resources must be guiding, ensuring the State’s obligations in PPP contracts.
At the same time, the State needs to improve effectiveness and efficiency through monitoring, evaluation, inspection and capacity building. In addition, it is necessary to actively communicate about PPP legal mechanisms and policies to contribute to bringing legal policies to life.
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