The infrastructure sector in Vietnam presents excellent opportunities. The Government of the Asian country, which has been experiencing notable economic growth for years now, has decided to invest large sums in the construction or modernization of the infrastructure necessary to support the development of the Vietnamese economy: going into specifics, the Minister of Planning and Investments, Vo Hong Phuc, estimated that in the next five years there will be a need for 139 billion dollars for investments in ports, roads, railways and airports.
The billion dollar value of infrastructure projects spanning 2010-2015 was estimated as follows: USD 52 billion for transportation; 8 billion USD for the port sector; USD 14.4 billion for roads and bridges; USD 20 billion for railways and subways; 9.6 billion USD for the airport sector.
Despite the progress of the last five years, investments in construction and infrastructure have not kept pace with the growth of the GDP: for this very reason we believe that, thanks also to government incentives which aim not only to attract investments, technology and know-how foreign, but to invest in the development of the sector around 9% of GDP, the scenario is extremely interesting for Italian companies willing to set foot in the Vietnamese market. The ongoing progress is slow, but constant.
According to some recent statistics, almost 88% of foreign enterprises and 83% of domestic local enterprises describe Vietnam's infrastructure as very bad; furthermore, 95.6% of foreign trading enterprises (involved in import/export) evaluate the quality of Vietnam's infrastructure in an absolutely negative way. Today, there are approximately 90 projects implemented by private investors with a combined funding of $7.1 billion from various sources. Some Italian banks and companies have already begun to test the waters and consider the market opportunities.
Our presence in the area guarantees us the possibility of experiencing first-hand what could be the best opportunities for foreign investors: in our opinion, the most interesting and prospectively most profitable areas today concern the construction of bridges, roads and the port.
In fact, the maritime sector, which can count on a total of 126 port terminals and 266 piers, presents several shortcomings: from the poor technical equipment, to the lack of adjacent infrastructures, from the lack of integration between the different means of transport to the lack of piers for large boats. As regards roads and bridges, there is a continuous increase in terms of mileage: it went from 96 thousand km of road network in 1990 to 224 thousand km in 2004; in the case of state roads, however, the increase was from 15 thousand to 17 thousand km. Furthermore, the Prime Minister recently approved a plan to build 3,041 km of highways along the coast.
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