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Summary

30 PROPERTY

LACK OF CONSTRUCTION

14 ECONOMY - POLICY MATERIALS HINDER COMPLETION
Industrial production continues OF HIGHWAY NETWORK

to gain momentum
T he demand for investment in transportation
infrastructure around the country to meet socio-
economic development requirements is substantial.
I ndustrial production in October continued its recent positive Investors and contractors are concerned about the lack of
construction materials as they work to achieve the goals set
trend, growing 5.5 per cent over September and 4.1 per cent
year-on-year. Given this result, industrial production in the out within Vietnam’s expressway network development plan.
first ten months of the year has “escaped” from negative growth. Over Meanwhile, State management agencies lack a mechanism to
the closing months of 2023, the Ministry of Industry and Trade effectively manage unit prices of materials on the market and
believes Vietnam’s economy will maintain its macro-economic deal with fluctuations in the prices of materials and supplies.
stability and social stability will continue in the context of Investors and contractors have proposed easing procedures
complicated geopolitical and global economic fluctuations. The for the issuance of mining licenses for materials in need. The
government has made and will continue to make efforts to accelerate Ministry of Construction will coordinate with the Ministry of
public investment disbursement, especially over the closing months Transport and relevant ministries and branches to conduct
of the year, to create breakthrough growth. In addition, many research and propose solutions to the government and the
policies to remove difficulties in production and business have been Prime Minister on effectively using construction materials, to
introduced, including on taxes and fees. Free trade agreements contribute to resolving difficulties from a shortage of leveling
(FTAs) with Vietnam’s major market partners such as the EU and materials for transportation infrastructure projects in the
the US continue to have a positive impact on its trade and Mekong Delta and especially the Eastern North-South
investment and, especially, its exports. Expressway project in the 2021-2025 period.

42 INVESTMENT - INFRASTRUCTURE 46 DIGITAL BIZ

Concerns surround

pilot policies to Potential
clear capital flows clear for IDC market
in traffic projects despite issues

M any pilot regulations are considered groundbreaking and are not V ietnam needs four or five additional internet data
centers (IDCs) each year with a scale of 2,000 racks
only “stimulating” more private investment capital and budget
flows from many cities and provinces but also empowering to basically meet its data needs, meaning the IDC
capable localities to invest in large-scale road traffic projects, especially market holds significant potential. In its strategy to build
regional links. However, there remain many concerns when national digital infrastructure, Vietnam aims to have all
implementing specific policies in practice. For example, some projects government agencies and 70 per cent of businesses using
pass through crowded residential areas and incur substantial site cloud computing and the data infrastructure services of
clearance costs, so the State’s low capital contribution to projects still domestic providers by 2025. But, in fact, given the plans
make it difficult to call for investment in the public-private partnership of technology businesses that provide storage services, it
(PPP) form. Under a government proposal, road traffic projects can will be difficult for Vietnam to secure these four or five
“relax” the ratio of State capital participation to a maximum of 70 per more IDCs each year. Reasons include capital access and
cent of the total investment, an increase of 20 per cent compared to competition with international tech giants possessing
current regulations, to attract investors. The assignment of a number servers and data centers outside of Vietnam. The Ministry
of localities to balance resources and have sufficient capacity and of Information and Communications has repeatedly
management experience to carry out the tasks of the governing agency called for Vietnamese businesses to prioritize using
and the Ministry of Transport is expected to create a breakthrough in Vietnamese products. Some network operators believe
road transport infrastructure investment and improve the efficiency of that management agencies also need to issue policies to
using State budget funds from the central and local levels. attract customers to Vietnam.

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