Public Sector Management of Revenue Risk in Public-Private Partnerships

Author: Tran Ha Duong
 

Abstract

For developing countries, infrastructure is often seen as one of the key factors contributing to a higher level of economic growth and a better quality of life. At the same time, the lack of investment in infrastructure can severely constrain their growth potential. Despite having the highest level infrastructure spending over Gross Domestic Product in Southeast Asia, Vietnam still trails behind other major developing economies in the region in terms of infrastructure quality. the country would likely need to significantly increase infrastructure investment in order to sustain its current economic growth. As public financing is limited, the private sector's participation in infrastructure investment through Public-Private Partnerships (PPPs) will be essential for Vietnam to meet its infrastructure needs.