According to PwC, to serve the green transformation goals, many countries in the Asia-Pacific region, including Vietnam, need to invest in up to 60% of new infrastructure. It is the participation of the private sector that will help Vietnam narrow the infrastructure gap and transform faster towards sustainable development.
On 27/4, in Hanoi, PwC Vietnam held a conference on Asia Pacific infrastructure and investment projects with the theme “Building infrastructure for today and tomorrow” and the journey of sustainable infrastructure development for Vietnam.
STRONG INVESTMENT, SUSTAINABLE INFRASTRUCTURE TRANSFORMATION
Vietnam is an Asian leader in infrastructure investment and is investing heavily in infrastructure to drive economic development, improve livelihoods, support the energy transition and strengthen resilience to climate change and natural disasters, with an expenditure of about 5.7% of GDP.
Vietnam is also in the midst of a transition towards a high-income economy and infrastructure development plays an important role in achieving that goal.
Sharing at the conference, Mr. Dang Huy Dong, Director of the Institute of Planning and Development Studies, former Deputy Minister of Planning and Investment, said that the National Master Plan for the period of 2021 – 2030 with a vision to 2050 emphasizes the need for a development model according to the country’s territorial space, accelerate the modernization and synchronization of infrastructure.
The government has also implemented many policies and initiatives to develop sustainable infrastructure. Such as investing in renewable energy sources, encouraging green buildings and electric vehicles.
Regarding the challenges that investors and the Government face in infrastructure investment in Vietnam, many comments at the conference said that the lack of a clear vision of infrastructure needs, multi-stakeholder coordination throughout the project process is not tight, limited capacity to implement public investment, complex legal system and organizational mechanism, as well as challenges of limited capital and time. hindering infrastructure development.
However, according to Edward Clayton, Deputy General Manager, Head of Infrastructure and Investment Project Advisory Services, PwC Vietnam, developing infrastructure to drive sustainable growth in Vietnam is challenging but at the same time opens up significant opportunities for stakeholders and investors.
“By prioritizing green, sustainable, and inclusive infrastructure projects, we can help accelerate the transition to a high-income, emissions-limiting economy, contributing to creating a sustainable future for the people of Vietnam,” he said. trusted by PwC.
According to a new PwC study on infrastructure, Asia-Pacific’s lower- to middle-income countries, including India, Indonesia, the Philippines, Thailand and Vietnam, need to invest in up to 60% of new infrastructure to serve green transformation.
However, “these countries lack the financial capacity to promote green growth. This demonstrates the need to access foreign direct investment and international investment funds,” PwC said.
However, according to a report by the Organization for Economic Co-operation and Development (OECD), developed countries are falling short of their pledge of $100 billion to help poorer countries cope with climate change by 2020.
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However, according to PwC’s Global Investor Survey, investors are showing more interest in sustainable investments, and environmental, social, governance (ESG) factors are becoming increasingly important in investment analysis and decision-making.
Governments or international financial institutions are also strengthening partnerships, pushing financial institutions to adjust their portfolios to serve the goal of limiting global warming to 1.5 degrees Celsius as called by the Intergovernmental Panel on Climate Change (IPCC) by the end of 2018.
Besides, the commitment at COP26 (the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change) and the goal of net-zero emissions by 0 have increased investor interest in sustainable infrastructure, increase investment in renewable energy, green buildings and other sustainable infrastructure projects.
To access these financing, according to PwC, the Government needs to prioritise green infrastructure elements and encourage infrastructure projects that support an equitable and inclusive transition to a low-carbon economy; At the same time, strengthen the ability to respond to climate change. The development of renewable energy sources is also important, requiring capacity and skill building in this area.
“Private sector involvement is also essential in developing sustainable infrastructure, especially in areas with limited public resources. With their financial resources, expertise and capabilities, private entities can help bridge the infrastructure gap and support the transition towards sustainable development,” PwC said.
Adrian Box, Vice President, Asia Pacific Infrastructure Advisory Services, PwC Australia sees significant challenges to building sustainable infrastructure in the Asia-Pacific region.
“We are committed to advancing public-private partnerships to jointly find effective solutions to these challenges,” said Adrian Box. Thereby, we can create innovative policy solutions and ensure the success of sustainable infrastructure projects that benefit communities and support economic development.
In response to the challenges investors and the Government face in infrastructure investment in Vietnam, opinions at the conference said that it is necessary to have long-term plans, clear project roadmaps, integrate local strategic frameworks and regulations with national policies to attract private investors and other investors. development partners.
Local governments may not have the capacity, experience and financial resources for the preparation of high-quality infrastructure projects, so support from governments and international organizations is needed.
The allocation of project risks among the public-private sector (PPP) is also important, for example when the Government shares part of the risk from the need to pay the cost of roads and bridges of people to build transport works in areas where infrastructure has not been developed, Private investors will have more favorable conditions for the implementation of the project.