A unique collaboration model based on true collaboration and joint implementation
The Partnership
Aus4Transport, the AUD30 million grant Program that supports Vietnam in the development of an enhanced transport infrastructure network and contributes to economic growth and poverty reduction, is the fruit of more than 25 years of collaboration between the Government of Vietnamand the Australia.
Background
Since 1995 the Australian Department of Foreign Affairs and Trade (DFAT) has been closely cooperating with the Ministry of Transport (MOT) of Vietnam, providing technical and financial assistance to support the development of Vietnam’s infrastructure sector.
Over the years, both countries have joined efforts on several major engineering projects, including the My Thuan bridge, the Southern Coastal Corridor, or the Cao Lanh bridge, to name just a few. Australia has also been very active in building capacity amomg MOT officials and helping to establish policies that are leading Vietnam towards international best practice and standards.
Vietnam’s Transport Sector
Vietnam’s transport infrastructure has expanded significantly in the last three decades. However, the quality of Vietnam’s transport network still requires attention, especially to improve the condition of infrastructure and facilitate multi-modal transport. These limitations hinder Vietnam’s socio-economic development and impede international competitiveness. For that reason, improved transport infrastructure is one of the top strategic priorities of the Vietnamese Government.
However, despite the proactive approach of the Ministry of Transport, its resources are scarce and attempts to secure foreign investors for Public-Private Partnerships have, to date, not been very successful. Currently, the budget allocated to MOT covers only 15-20% of its investment needs and its ability to borrow from Multilateral Development Banks is limited, as Vietnam has transitioned from the category of low-income to middle-income country.
Because of this imperative need to bring the development of the transport network up to speed with Vietnam’s economic growth, the Australian financial and technical assistance is key to the national, regional and local socio-economic development of the country.
The Partnership in a Nutshell
Strong collaboration between DFAT and MOT
Based on over 25 years of transport infrastructure support
Coordinated by the Program Steering Committee
High-level oversight once or twice a year
Regular Meetings of the Technical Working Group
Main stakeholders meeting monthly to ensure smooth progress
Shared Strategic Priorities
Aligned to Vietnamese and Australian key interests
Long-term approach
Allowing knowledge and practice to establish within MOT’s operations
Support for Policy Change
Integrating best international practice within Vietnamese regulations
Next steps
The transport infrastructure collaboration between the Government of Australia and the Government of Vietnam, which has been successfully operating since February 2018, is preparing for a deep review that will identify how the second phase could best continue strengthening Vietnam and Australia’s economic partnership.
The Australian Department of Foreign Affairs and Trade (DFAT) is currently working on the design of the potential second phase of Aus4Transport after an independent review team recommended the Program to be extended for a period of 3 to 5 years. The Program Design Refresh will consider opportunities to improve efficiency, maximise program impact and ensure sustainability of the outcomes delivered.
