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Sustainable Financing Sources for Transport Development in Vietnam

Main Objectives: Discuss the financing issue for transport infrastructure development and management in Vietnam; discuss mobilization of financing sources for transport development in Japan, in order to draw Useful Lessons for Vietnam. | Main Objectives Sustainable Financing Sources for Transport Development in Vietnam The 8th Spring Study Meeting in 2007 Presented by Dinh Van Hiep Koji Tsunokawa l-Saitama University ipan Society for International s Discuss the financing issue for transport infrastructure development and management in Vietnam. s Discuss mobilization of financing sources for transport development in Japan in order to draw Useful Lessons for Vietnam. To establish a sustainable financing framework for transport infrastructure development and management Transport Expenditure Levels From 1994 the Vietnamese Government has paid more attention on the development of transport infrastructure through many large-scale transport projects. Country period Transport Investment GDP Total Public Investment in Infrastructure GDP Japan 1957 - 1973 2.0 - 2.5 6.0 -8.0 Korea 1983 - 1991 2.1 -3.0 8.1- 13.0 Vietnam 1994 - 2005 3.2 7.5 Source World Bank 1996 Ministry of Finance - Vietnam 2005 3 Major Spending on Roads Year from 1994 - 2005 Source World Bank 2006 1 ODA inflows in Vietnam Total ODA Disbursement Projects TOP 10 Donors by Disbursement in 2003 Source UNDP 1 1 USD Million - Number of projects USD mil Source UNDP Distribution of ODA within Sectors ODA inflows in Vietnam in the Future 12 2 ODA Disbursements Continually declined ODA Inflows to China from Japan Afghanistan Year Ạ Source JBIC 2005 And STOP now. ODA inflows in Vietnam in the Future s The global trend of ODA inflows has continuously declined s Donors could not provide more ODA to Vietnam in the future because the country will archive a higher GDP per capita at US 1000 as estimated for 2010 so it would not be seen as the underdeveloped country in order to receive preferential treatment from donors I How is Future Expenditure in Transport Development ODA inflows in Vietnam might decline in the future Future Expenditure Requirements in Transport Development in US million 2002 -2010 2010 - 2020 Total Annual average of GDP MOT 1 50 125 84 .