In Asia's infrastructure race, Vietnam is among the leaders

It may be one of the smallest economies in Asia, but Vietnam is spending billions to attract foreign investors. Vietnam’s public and private sector infrastructure investment averaged 5.7 per cent of gross domestic product in recent years, the highest in Southeast Asia and compares with 6.8 per cent in China, according to the Asian Development Bank (ADB). Indonesia and the Philippines spend less than 3 per cent, while Malaysia and Thailand spend even less at under 2 per cent. The ADB estimates that emerging economies in the region will need to invest as much as $26 trillion through 2030 to build transport networks, boost power supply and upgrade water and sanitation facilities. Vietnam, among the fastest-growing nations in the world, is boosting infrastructure to lure more foreign investors as it positions itself as Asia’s next Tiger Economy. Foreign direct investment surged to a record $15.8 billion in 2016, and the economy is forecast by the World Bank to expand more than 6 per cent until 2019, among the top performers this decade.

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