Vietnam’s road network requires
considerable investment
Transport Infrastructure Vietnam 2012 has been organised by 247 IQPC in partnership with the local authorities and will be held in Hanoi from 17-18 April, 2012. Further details can be found External 0 0 0 oLinkExternal here Transport infrastructure Vietnam 2012 false http://www.transportinfrastructure-vietnam.com/ false false %>.
A huge investment by2560 Vietnam's Ministry of Transport will see over US$5 billion spent on the country’s road transport infrastructure by 2020.
This massive spending is required to keep pace with the country’s growing vehicle numbers. Since 2000, the number of people travelling by road in the country has almost tripled from 620 million passengers to a staggering 1.76 billion passengers.
Meanwhile, freight traffic by road has also tripled from 7,969.9 million tonnes/km to 31,587.2 million tonnes/km, a growth of nearly 400%.
The huge increase can be put down to the proliferation of car ownership. By November 2011, nearly 100,000 vehicles were sold in Vietnam, down only 1% over the same period in 2010, with cars and multi-purpose vehicles sales increasing 23.9% and 4% respectively.
As a result international companies are keen to develop their presence in Vietnam in contracting, supplying associated road hardware, selling vehicles and financing, for example.
An upcoming event, Transport Infrastructure Vietnam 2012, will provide a key tool for international investors.
With regards to foreign investment, Lieven Jacquemyn, managing director of5505 Plektics [a developer, investor and operator of infrastructure projects in
emerging markets with a long term perspective], believes that on a macro-level, Vietnam has painted a very promising picture over the last decade.
“Strong fundamentals supporting foreign investment interest are the stable political system, political support and a consistent rapid economic
growth."
“During the 2008 financial crisis and its aftermath, Vietnam’s real estate and Stock Market have suffered. However, in hindsight it probably triggered an overdue correction bringing things back to reality and perspective,” he said.
“Many foreign investors still regard Vietnam as a prime investment destination but are at the same time expecting the government to further develop and enhance its infrastructure to support and advance economic growth; especially in the areas of ransportation and energy.”
A huge investment by
This massive spending is required to keep pace with the country’s growing vehicle numbers. Since 2000, the number of people travelling by road in the country has almost tripled from 620 million passengers to a staggering 1.76 billion passengers.
Meanwhile, freight traffic by road has also tripled from 7,969.9 million tonnes/km to 31,587.2 million tonnes/km, a growth of nearly 400%.
The huge increase can be put down to the proliferation of car ownership. By November 2011, nearly 100,000 vehicles were sold in Vietnam, down only 1% over the same period in 2010, with cars and multi-purpose vehicles sales increasing 23.9% and 4% respectively.
As a result international companies are keen to develop their presence in Vietnam in contracting, supplying associated road hardware, selling vehicles and financing, for example.
An upcoming event, Transport Infrastructure Vietnam 2012, will provide a key tool for international investors.
With regards to foreign investment, Lieven Jacquemyn, managing director of
emerging markets with a long term perspective], believes that on a macro-level, Vietnam has painted a very promising picture over the last decade.
“Strong fundamentals supporting foreign investment interest are the stable political system, political support and a consistent rapid economic
growth."
“During the 2008 financial crisis and its aftermath, Vietnam’s real estate and Stock Market have suffered. However, in hindsight it probably triggered an overdue correction bringing things back to reality and perspective,” he said.
“Many foreign investors still regard Vietnam as a prime investment destination but are at the same time expecting the government to further develop and enhance its infrastructure to support and advance economic growth; especially in the areas of ransportation and energy.”
