Capital sources milked for fresh development

A newly released report on Vietnam’s 2010 and 2011 socio-economic development and plans, forecasted that Vietnam’s total development capital, including foreign investment, would be over VND900 trillion ($47.36 billion), nearly 40 per cent of the country’s gross domestic product (GDP), up 12.5 per cent against 2010’s disbursed sum.

Education is one destination for the freshly mobilised capital

The state budget will invest VND148 trillion ($7.78 billion), or 16.4 per cent of the needed capital, up 17.9 per cent against 2010’s estimated sum.

The capital from government bond issuances and credits is estimated to hit VND45 trillion ($2.36 billion) and VND67 trillion ($3.52 billion), accounting for 5 and 7.4 per cent respectively of the total development capital, down 34 and up nearly 22 per cent, respectively against 2010’s disbursed volume.

In addition, investment capital from state-run enterprises should rise to VND80 trillion ($4.2 billion), or 8.9 per cent of the total development capital, up 21 per cent against the volumes disbursed in 2010. Private domestic and public enterprises should hit VND350 trillion ($18.42 billion), or 38.9 per cent of total development capital, up 43.3 per cent, of total development capital.

Investment capital from foreign direct investment (FDI) enterprises is expected to be VND200 trillion ($10.52 billion) or 22.2 per cent of the total development capital, up 16.3 per cent against 2010.

Other capital sources are expected to reach VND10 trillion ($526 million), accounting for 1.1 per cent of total development capital.

“The government’s capital will be earmarked for large, important and urgent national projects in need of completion within 2011,” said Minister of Planning and Investment Vo Hong Phuc.

He said the capital would be used for large-scale transport infrastructure projects such as roads, seaports, airports, and urban infrastructure in Hanoi and Ho Chi Minh City. It would also go towards education and training, local hospitals and medical clinics, poverty reduction and environmental protection.

Government Office chairman Nguyen Xuan Phuc said that for official development assistance (ODA), environmental protection and climate change projects are a priority.

“However, because Vietnam has become a middle-income country, how to use ODA the most effectively is of utmost consideration,” he said.