REVIEW
of
FINANCE -
November, 2018
47
investment capital for infrastructure development
is mobilized from abroad (mainly ODA loans)
and private investors in and outside the country.
The State only plays the role of promulgating
mechanisms and policies to maintain a favorable
investment environment, create conditions for
and encourage various sectors in society to invest
in developing infrastructure, especially private
sector.
In Indonesia, capital for infrastructure
development is seriously in shortage. Indonesia
seeks to raise capital from major banks, especially
from the Asian Investment Bank (AIIB). Indonesia
is ranked81
st
in theworld in termsof infrastructure,
lagging considerably behind that of member
nations of the Association of Southeast Asian
Nations (ASEAN) such as Singapore, Malaysia,
Thailand, even Laos. Indonesia’s infrastructure
sector is expected to boost economic growth at an
industry-wide cost estimate of 26 percent of GDP,
much higher than the 8% of Singapore or 14%
of Malaysia. As a result, Indonesia has stepped
up infrastructure development with hundreds of
billions of dollars in capital, while the country’s
economy is facing many difficulties due to impact
of the world and regional economic recession.
Therefore, to fulfill its plan, Indonesia needs
to rely on investment capital from major banks
in the world, Indonesia has already received the
first loan from AIIB with the amount of 216.6
MOBILIZATIONOF FINANCIAL RESOURCES FOR
INFRASTRUCTURE DEVELOPMENT INTHEWORLD AND
POLICY RECOMMENDATIONS FORVIETNAM
NGUYEN THI VIET NGA, PhD.
- Academy of Finance*
According to a World Economic Forum report on global competitiveness in 2017-2018, Vietnam’s
infrastructure is still at a very low level, ranking 79
th
in the world (3.9 points) 2 levels higher than in 2014.
In ASEAN, the Vietnam’s infrastructure rank is quite modest, far fromMalaysia (22
nd
), Thailand (43
th
)
Indonesia (52
nd
) and only higher than Philippines (97
th
), Laos (102
th
) and Cambodia (106
th
). This paper
discusses the experience of mobilizing financial resources for developing infrastructure in some countries
and lessons for Vietnam and proposes some solutions to help Vietnammobilize maximum resources for
infrastructure development.
Key words: Financial resources, infrastructure, Socio-Economic Development Strategy
Received: August 9
th
, 2018
Revised: September 26
th
, 2018
Accepted for publication: October 3
rd
, 2018
T
he Socio-Economic Development
Strategy for Vietnam 2011-2020 identified
infrastructure development as one of the
three pillars to support achieving high quality and
sustainable economic development. Vietnam’s
rapid growth has outstripped the development of
infrastructure and significantly limited its future
development and investment.
Vietnamhas a high proportion of its investment
in infrastructure compared to the world, but its
infrastructure does not meet the requirements
of economic and social development. According
to the World Bank and the Asian Development
Bank, Vietnam needs to increase its investment in
infrastructure by 11-12% of GDP to maintain its
current growth. However, policies on mobilizing
financial resources for infrastructure development
are still facing many difficulties. Therefore,
studying the experience of mobilizing resources
for infrastructure development in Vietnam is
necessary and timely.
International experience in mobilizing financial
resources for infrastructure development
In Asian developing countries, due to the small
size of the state budget and the need to spend
and invest in many other sectors, most of the
* Email: vietnga@hvtc@edu.vn
