Resource information
A fundamental challenge for Vietnam is
to improve the affordability and efficiency of
infrastructure investment. The fragmentation of public
infrastructure investment results in duplication and waste,
and is a major underlying cause of investment inefficiency.
Bond issuance has been the most prominent form of debt
financing at the sub-national level. At the provincial
level, significant disconnects exist between total planned
investment needs in infrastructure, and the effective demand
for such investment. The success of any initiative to
improve the financing of municipal infrastructure in Vietnam
hinges on advances in the broader landscape of policy reform
as part of the country's long-term development. Meeting
these challenges requires a comprehensive approach that
addresses issues of governance, financing, and execution.
This report has been formulated with the objective of
informing the Government of Vietnam (GOV) on how the
financing framework for municipal infrastructure in the
country can be strengthened. It is based on an assessment of
the constraints and opportunities that sub-national
governments face in accessing financing for infrastructure
development. It also draws upon lessons and good practices
from international experience in this area, considering
their relevance for Vietnam. A set of recommendations and
implementable actions is provided, recognizing the broader
context of ongoing reforms that are needed on institutions,
incentives and the availability of information.
