Vietnam's Deputy Prime Minister Calls for Intensified Scrutiny of BOT Projects Amidst Quality and Progress Concerns

Vietnam's Deputy Prime Minister, Tran Hong Ha, issued a directive to the Ministry of Transport, mandating a comprehensive review and evaluation of Build-Operate-Transfer (BOT) projects across the country's transport infrastructure sector.

This directive, dated May 3, 2024, comes amidst growing concerns over the quality and progress of such projects.

DPM Ha's directive follows previous communications from the Government to the National Assembly regarding solutions to challenges in BOT projects, indicating a longstanding effort to address structural issues in transport infrastructure investments.

Despite some efforts, the Ministry of Transport's execution has fallen short of government expectations, prompting the DPM to call for a more proactive approach.

Coordinated Efforts for Comprehensive Review

In his directive, the DPM emphasized the Ministry's responsibility to adhere to instructions from the National Assembly Standing Committee and Government Leaders, urging them to seek input from relevant agencies to ensure comprehensive dossier preparation.

He stressed the importance of identifying both subjective and objective causes of issues, distinguishing between those caused by changes in state policies and responsibilities of involved parties.

Ha also called for close coordination between the Ministry of Transport and various government bodies including the Ministry of Finance, Planning and Investment, Justice, Government Inspectorate, and the State Bank of Vietnam. These agencies were tasked with providing timely opinions and support during the review process.

Transparent Reporting and Accountability

Importantly, DPM Ha cautioned against proposing solutions solely based on subjective reasons from businesses and investors, emphasizing their contractual obligations and accountability. He urged the Ministry to thoroughly evaluate the negative impacts of proposed mechanisms and policies, emphasizing the need for transparent reporting to competent authorities.

In terms of procedural requirements, Ha instructed the Ministry of Transport to expedite the review process in accordance with established regulations.

This includes seeking opinions from relevant ministries and agencies, as well as ensuring full explanations are provided before submitting reports to the Standing Government.

The DPM asks that the Ministry of Transport outline its plan to report to the Party Central Committee's Office and seek permission to report to the Politburo in early May 2024.

Additionally, he demands the Ministry of Transport to complete the dossier for submission to the National Assembly at its 7th session.