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Vietnam learns from experience in seaport, airport privatisation

Vietnamese and foreign experts shared experiences in calling for private sectors’ engagement in providing seaport, airport and energy services during a conference held by the Central Institute for Economic Management (CIEM) in Hanoi on June 3.
Vietnamese and foreign experts shared experiences in calling for privatesectors’ engagement in providing seaport, airport and energy servicesduring a conference held by the Central Institute for EconomicManagement (CIEM) in Hanoi on June 3.

Dr. WarrenMundy, Chairman of Australia’s Productivity Commission, said improvinginfrastructure systems is needed to increase productivity andcompetitiveness.

He suggested a number of policiesto renovate infrastructure, including the classification of publicinfrastructure systems like transportation, energy andtelecommunications, which are significantly dependent on Stateexpenditure.

Calling for investment from the privatesector to the area will help save State resources for other initiativeswhile creating space for private enterprises to engage in the operationand exploitation of these infrastructures, he said.

He took the privatisation of Australia ’s Brisbane and MelbournePerth Airports as an example. The airports, which were handed overto a private firm in 1997 under a 49-year leasing contract, saw a surgein the number of passengers and investment through the years, he noted.

Meanwhile, CIEM Director Nguyen Dinh Cung pointedout a number of problems facing Vietnam in privatising airports,including facility conditions, policy gaps and security and defenceconcerns.

According to Vice Director of the CivilAviation Agency of Vietnam Vo Huy Cuong, the country’s airport systemhas been developed on the foundation of military purposes. Only one ofthe 21 nationwide has been invested in by private businesses, henoted.-VNA

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