His department places the urgent need at trillions of dong (VND1 trillion = US$56.2 million) for 37 projects that have already been approved, with VND200 billion needed for preparatory work, he said. But to improve the entire city traffic system, much more money would be required, he said.

Asked about seeking investment from private sources, or “investment socialization” as it is called by the Government, he said the department has made an announcement on its website but only elicited modest interest. The list of projects requiring investment includes underground parking lots, overpasses, and beltways.

Asked whether red tape would discourage private investors, he said that the department is always trying to make it easy for investors, and that the biggest issue now is funds.

An overpass can cost VND5-7 trillion and a large bridge VND2 trillion, amounts not many domestic investors can afford, he explained.

Another issue concerning investors is the return on their funds, which is not high in Vietnam because of difficulty in collecting toll, he said. As a result, investors are wary even of projects requiring smaller amounts.

City authorities have also sought foreign investment to improve the traffic system, but few investors are interested now due to the global economic recession, he said.

Asked what measures would be taken to attract funds through 2020, he said besides offering such investment forms as build-operate-transfer (BOT), build-transfer (BT) and build-own-operate (BOO) , the department would listen to investors’ opinions to work out other forms.