“[In 2009], the country’s infrastructure did not improve. This will continue to hurt Vietnam’s economic growth and investment attraction next year,” said Prime Minister Nguyen Tan Dung.

“Vietnam’s roads are of low quality, while its electricity system has failed to sufficiently meet the people’s demands. There is still a lack of urban area infrastructure and water drainage and supply systems, and the existing o­nes are of very low quality. Urban planning and management also remain problematic,” Dung said.

Phan Dinh Trac, a National Assembly (NA) delegate from Nghe An province, said that if Vietnam wanted to keep its economic growth stable in 2010 and over the following years, the government needed to increase infrastructure investments.

He said that improved infrastructure would cost a lot of money, while the state budget was limited. Thus, the government needed to issue attractive mechanisms and policies for all economic sectors to engage in building infrastructure.

“The government should invest in sectors that are difficult for capital return, take a long time for capital return or have low economic effectiveness. For the remaining sectors, other economic sectors should be brought in,” Trac said.

“I know that Ba Ria-Vung Tau province can lure about $30 billion from foreign direct investment projects in the near future. But, it will need $1.5 billion for upgrading and building infrastructure. The state budget will likely be enriched if money is invested. However, the problem is whether or not we dare to spend such a large sum of money o­n infrastructure,” said Nguyen Thuc Khang, a NA delegate from Ba Ria-Vung Tau province.

He said many countries had designed strategies to invest in infrastructure, while accepting higher-than-normal budget deficit levels.

“Vietnam must have proper infrastructure investment strategies and debt settlement schemes, while closely calculating its budget deficit level in the upcoming years,” Khang said. “For example, Hanoi and Ho Chi Minh City are facing heavy traffic jams, which have seriously hindered further development. To solve this problem, we have no other choice than to build a metro system, which will cost a lot of money. So, do we dare to borrow money from outside, since our budget is limited?” he said.

Tran Ngoc Vinh, a NA delegate from Haiphong, said under government planning, the city’s Cat Bi airport would be developed into an international o­ne. “However, we heard that this project would be stopped without a concrete reason. If this is true, the city’s socio-economic development will be effected, because the news that the upgrading of the airport will begin in 2010 has prompted many investors to come here, while the number of guests using the airport is expected to double from this year to 2010,” Vinh said.

Nguyen Van Sy, a NA delegate from Quang Nam province, proposed that infrastructure construction in Vietnam’s key economic regions be prioritised. “For example, the road system in the central key economic region is of very bad quality. And the Danang-Dung Quat highway, connecting Danang with the Chu Lai and Dung Quat economic zones, has yet to be built,” he said.

In another case, he said, National Highway 1, running through the central provinces, had seriously deteriorated, causing terrible traffic jams, while a coastal road running through these provinces had not yet been built, preventing the country from developing its coastal provinces and preventing those from being protected from storms and floods.