The Van Don – Mong Cai project, to be developed with a VND7 trillion loan from China, remains a hot topic of debate.
Le Thanh Van, member of the National Assembly’s Finance Committee, said it was necessary to be cautious when borrowing money from China to develop the highway.
“The Cat Linh – Ha Dong elevated railway shows that when doing business with China, we will take losses if we aren't skeptical,” he said.
“At first, they (China) suggested developing the railway project at a low cost, but later tried every possible way to raise the investment capital,” he said, emphasizing that he personally does not agree about the Van Don – Mong Cai project.
Meanwhile, Pham Chi Lan, a renowned economist, said: “As a taxpayer, I object to the plan to borrow money from China to develop the Van Don – Mong Cai project”.
“Is there any other country which have so many problematic projects in Vietnam like China?” she asked.
| The Quang Ninh provincial authorities still insist on the importance of the project, saying that the highway would play a very important role in the development of the economy in the region and in Vietnam. |
Too many projects related to China have shown serious problems. They have low quality, prolonged implementation and are very expensive though the initial investment capital is low.
Meanwhile, Do Thien Anh Tuan, a lecturer at the Fulbright Economics Teaching Program (FETP), showed doubts about the efficiency of the project.
“I still cannot see the financial and technical plans which prove the efficiency of the project,” he said.
Noting that the Ministry of Transport has said that no other investor, except China, has shown the interest in the project, Tuan said that it was necessary to learn more about this.
Promoting reform and developing economy in developing countries like Vietnam is the priority of the World Bank (WB) and the Asian Development Bank (ADB). Tuan believes that if the Van Don – Mong Cai project can bring economic efficiency, WB and ADB will fund the project.
“The fact that they (WB and ADB) do not intend to fund the project can show doubts about the project’s economic feasibility,” he commented.
The Quang Ninh provincial authorities still insist on the importance of the project, saying that the highway would play a very important role in the development of the economy in the region and in Vietnam.
Tuan said that if still implementing the project, it is Quang Ninh provincial authorities, not the Ministry of Transport, which must come forward to borrow and pay debts.
“Those, who eat cake have to pay,” he commented.
