Vietnam and Australia sign one more year of partnership to keep advancing the transport sector
IN BRIEF
On 23rd of July, the Ministry of Transport officially approved the highly anticipated one-year extension of the Subsidiary Arrangements between the Government of Australia and the Government of Vietnam that regulate Aus4Transport, the transport infrastructure partnership between the two countries that has been successfully in place for over three years.
After a lengthy and comprehensive process, the Vice Minister of Transport, H.E. Mr Nguyen Ngoc Dong, was happy to sign the adjustments to the original agreement, making the extension possible. The decision included a letter from the Ministry of Transport affirming the value of Australia’s continuous support to Vietnam’s infrastructure sector and highlighting Aus4Transport’s relevance and contribution to the country’s economic and social development.
KNOW MORE…
Aus4Transport, the AUD30 million grant Program supporting Vietnam in the development of an enhanced transport infrastructure network and contributing to economic growth and poverty reduction, has officially been extended until the end of December 2022.
An independent review, commissioned by the Australian Department of Foreign Affairs and Trade in late 2020, recommended the Program’s initial phase to be extended for one supplementary year, to provide additional time to complete all the supported activities and to allow for newly acquired knowledge and international best practice innovations to establish within the Ministry’s operations.
Although Vietnam’s transport infrastructure has expanded largely in the last three decades, the quality of Vietnam’s transport network still requires attention, especially to improve infrastructure condition and facilitate multi-modal transport. These limitations are hindering Vietnam’s socio-economic development and impeding international competitiveness. For that reason, transport infrastructure is one of the top strategic priorities of the Vietnamese Government.
However, despite the proactive approach of the Ministry of Transport, its resources are scarce and attempts to secure foreign investors for Public-Private Partnerships have, to date, not been very successful. Currently, the budget allocated to the Ministry of Transport covers only 15-20% of its investment needs and its ability to borrow from Multilateral Development Banks is limited, as Vietnam has transitioned from the category of low-income to middle-income country.
Because of this imperative need to bring the development of the transport network up to speed with Vietnam’s economic growth, the Ministry of Transport acknowledged the generous support that Australia has been providing since 1995 to develop Vietnam’s infrastructure sector. During all these years, both countries have joined efforts on several major engineering projects, including the My Thuan bridge, the Southern Coastal Corridor, or the Cao Lanh bridge, to name just a few. Australia has also been very active in building capacity for MOT officials and helping to establish policies that are leading Vietnam towards international best practice and standards. Altogether, the Australian financial and technical assistance has greatly contributed to the national, regional and local socio-economic development of the country.
Aus4Transport is proud to be part of this fruitful partnership, and enthusiastic about continuing to assist the Vietnamese transport sector advance towards a more inclusive and sustainable future.
