The PPP Monitor outlines the key advances in thePPP framework which include, enabling availability/performance-basedpayment schemes, removing the previous limit on viability gap funding of49% of total investment cost, enabling wider scope of infrastructureprojects to be procured as PPPs and establishing processes for PPP projectidentification, appraisal and approval.
From 1990 to 2016, the country has closed 84 PPP projects amounting to US$16.2 billion, with 79% of the projects in the energy sector. However, there are no PPP projects that have been implemented under this latest framework.
The PPP Monitor finds that current challenges include foreign lenders security issues as the framework for credit enhancements and guarantee mechanisms remains unclear and restrictions on the mortgage over land-use rights in favor of foreign banks where land is conferred on a rent-free basis.
In the event of public debt rise and state-owned enterprises domination among infrastructure projects, Vietnam's government has been focused more on encouraging private sector-led growth. The PPP regulations (Decree 15) enacted in 2015 establish a legal framework to attract more private investment toward national infrastructure development projects.