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Difficulties In Infrastructure Investment In Asean

Infrastructure Investment in ASEAN countries is facing many difficulties, partly hindering the economic development of countries in the region.

Annual Conference on Asian Competitiveness in 2017, Many experts point out that ASEAN is facing many obstacles to investment projects. Countries do not have specific regulations and specific policies for public-private partnerships (PPPs), projects for implementation, management and transportation of infrastructure in cooperation with government agencies and investors. In addition, there is a lack of institutional capacity and skills needed to support PPP, project preparation, environmental assessment, contract building, and licensing skills.

Mr. Petrott said:  “Not to mention other issues such as land reclamation for complex projects, lack of long-term financial resources…This has seriously hindered investment in infrastructure”

Infrastructure in Asean
Infrastructure in Asean

According to the World Bank (WB), the population of ASEAN countries and infrastructure investment is almost double the GDP growth rate, but participation in investment projects of private enterprises are quite small, with only about 15 billion USD in the region. In Vietnam, PPP projects focus on thermal power, with a total investment of only 1.8 billion USD in 2014. Meanwhile, in China, the total PPP investment is 6.52 billion USD, Colombia is 10.1 billion USD, Indonesia with 6.9 billion USD.

At the conference, the President of Singapore made a statement on the importance of infrastructure investment in the countries. Infrastructure development drives economic activity, creates jobs and improves the quality of life. He wishes the countries in the region to work more closely for the common good of the society, especially in the field of infrastructure development.

In the coming time, the experts from the World Bank, as well as businesses will work together to find a sustainable solution to promote and develop the economy and create linkages between countries in the Southeast. To improve the quality of life for people, at the same time to remove difficulties and problems in the field of infrastructure investment and enhance the role of private enterprises in this process

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