SOLUTIONS TO PROMOTE DIVERSIFICATION OF INVESTMENT CAPITAL FOR ROAD TRANSPORT DEVELOPMENT IN VIETNAM

Abstract

In terms of the ensuring the growth and development of the national economy, road transport is seen as a key factor to consider. It also serves as a channel to develop other socio-economic sectors. During the recent years, the investment capital in Vietnam has increased and diversified in terms of both volume and form of mobilization. Besides the State capital, investment drive has been ensured through participation from the whole society. The annual capital, however, only meets more than 54% of the demand. There are several objective and subjective reasons for capital shortage: planning has not kept pace with economic development, management has shortcomings such as lack of a support policy in case of risks, loans from commercial banks are mainly short-term, policies to encourage investment in the form of BOT and BT, among others, are not attractive enough to the private sector and the whole society. The objective of this article is to examine the existing conditions of capital for road transport development. The authors use the questionnaire method with measurements done using the 5-point Likert scale and a 3-step survey process. Using SPSS and a sample size of 250, the authors explore the role of factors that strongly hinder or strongly influence the diversification policies. This is the base for them to propose urgent solutions to promote diversification of investment capital for road transport development in Vietnam.