Foreign investors participate in BOT projects

This is considered to be a good sign for the domestic transport sector because big scaled projects worth of billions of USD are about to be launched.

It took the two Japanese companies NEXCO and JEXWAY 1 year to complete their research and negotiation in order to buy a 20% stake of FECON group Vietnam in the BOT project near Phu Ly. 10 years ago, these Japanese companies wanted to invest in a BOT or a buy, operate and transfer project in Vietnam. However, the deal didn't go through.

Currently, these two Japanese enterprises only buy stocks of completed BOT projects. However, the two sides are negotiating to participate in the 2 bidding projects of the North- South highway.

The future projects can attract a new inflow of money into important projects such as the North South highway and Long Thanh airport.

Nguyen Hong Truong, Deputy Minister of Transport, said: “We are providing support mechanisms such as the credit guarantee mechanism as well as higher profit margins of 13 to 14%”.

The total investment for the two projects - the North South highway and Long Thanh international airport - is around 22 billion USD. Fund from the state budget can only meet 30% of the total amount requested. Capital inflow from foreign investors is one way to lessen the pressure on domestic credit institutions.