The infrastructure sector in Vietnam presents excellent opportunities. The Government of the Asian country, which for years has been experiencing considerable economic growth, has decided to invest large sums for the construction or modernization of the infrastructures necessary to support the development of the Vietnamese economy: going specifically, the Minister of Planning and Investments, Vo Hong Phuc, has 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: $52 billion for transportation; 8 billion USD for the port sector; $14.4 billion for roads and bridges; $20 billion for rail 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 investing around 9% of GDP in the development of the sector, the scenario is extremely interesting for Italian companies willing to set foot on the Vietnamese market. The ongoing progress is slow, but steady.
According to some recent statistics, nearly 88% of foreign enterprises and 83% of domestic local enterprises describe Vietnam's infrastructure as very bad; moreover, 95.6% of foreign business enterprises (involved in import/export) rate the quality of Vietnam's infrastructure absolutely negatively. 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 probe the ground considering the market opportunities.
Our presence in the area guarantees us the opportunity to see first-hand what could be the best opportunities for foreign investors: in our opinion, the most interesting and prospectively profitable areas to date 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, has several shortcomings: from poor technical equipment, to the lack of adjacent infrastructure, from the lack of integration between the different means of transport to the lack of piers for large boats. As far as roads and bridges are concerned, there is a continuous increase in terms of mileage: from 96,000 km of road network in 1990 to 224,000 km in 2004; in the case of state roads however, the increase was from 15,000 to 17,000 km. Furthermore, the Prime Minister recently approved a plan to build 3,041km of highway along the coast.
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