HANOI, August 16 (Engineering Daily) -- The Global Infrastructure Hub (GI Hub) is under the management of the G20 Major Economies Group, in partnership with Oxford Economics, a global leader in global forecasting and quantitative analysis, to implement and publish the Global Infrastructure Perspective report.
The report aggregates research in 50 countries across seven continents, based on data from national data archives and databases from sources such as the World Bank, InfraLatAm, OECD and others.
The study estimates the cost of equipping the infrastructure to support world economic growth and initially narrowing infrastructure gaps to about $ 94 trillion by 2040.
Therein lies the largest demand for infrastructure, at $ 52 trillion in the Asia region, accounting for 55 percent of global demand. With the investment demand of up to $ 28 trillion in infrastructure, China accounts for more than half of Asia demand, or 30 percent of global demand.
Worldwide, it is projected that urban population will increase rapidly, resulting in huge demand for infrastructure support. In ASEAN countries, the urban population of Cambodia will rise from 22% by 2015 to 39% by 2040, Indonesia from 54% to 88%, Malaysia from 74% to 86%, Myanmar from 34% to 50%, Philippines from 44% to 67%, Thailand from 48% to 56% and Vietnam will up from 34% to 50%.
According also to this report, the demand for infrastructure investment in Vietnam is $ 605 billion in 2016-2040. Considering the ratio of infrastructure investment to GDP, the demand for it in Vietnam is 5.87%, the highest in Southeast Asia and second in Asia after China.
Vietnam is expected to meet 83% of total infrastructure investment needs. The largest gap is in the road sector with 70% increase in capital requirements to meet anticipated demand.
The report says that in order to achieve the UN's sustainable development goals, Vietnam will need to significantly increase its investment in clean water infrastructure. Total investment needs that include items within the UN objective will almost double the total infrastructure investment in current trends.
According to another research related to Infrastructure and Procurement Plan of InfraCompass, Vietnam is a better performer than the average of emerging countries.
But like many other countries, Vietnam may need to do more with the licensing process and the regulatory environment.
