World Bank2014-04-012014-04-012013-09https://hdl.handle.net/10986/17568A fundamental challenge for Vietnam is to improve the affordability and efficiency of infrastructure investment. The fragmentation of public infrastructure investment results in duplication and waste, and is a major underlying cause of investment inefficiency. Bond issuance has been the most prominent form of debt financing at the sub-national level. At the provincial level, significant disconnects exist between total planned investment needs in infrastructure, and the effective demand for such investment. The success of any initiative to improve the financing of municipal infrastructure in Vietnam hinges on advances in the broader landscape of policy reform as part of the country's long-term development. Meeting these challenges requires a comprehensive approach that addresses issues of governance, financing, and execution. This report has been formulated with the objective of informing the Government of Vietnam (GOV) on how the financing framework for municipal infrastructure in the country can be strengthened. It is based on an assessment of the constraints and opportunities that sub-national governments face in accessing financing for infrastructure development. It also draws upon lessons and good practices from international experience in this area, considering their relevance for Vietnam. A set of recommendations and implementable actions is provided, recognizing the broader context of ongoing reforms that are needed on institutions, incentives and the availability of information.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSASSET MANAGEMENTAUCTIONAUCTIONSBALANCE SHEETBANKING SECTORBIDBIDSBONDBOND ISSUANCEBOND ISSUEBOND ISSUESBOND MARKETBORROWING CAPACITYBUDGETINGCAPITAL BASECAPITAL FORMATIONCAPITAL GRANTSCAPITAL INVESTMENTCAPITAL MARKETSCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANK LOANSCOMMERCIAL BANKINGCOMMERCIAL BANKSCOMMERCIAL LOANSCOMPETITIVE BIDDINGCONTINGENT LIABILITIESCORPORATE BONDSCREDIT ENHANCEMENTCREDIT RATINGCREDIT RATINGSCREDIT RISKSCREDITORSCURRENCYCURRENCY RISKDEBTDEBT DEFAULTDEBT FINANCINGDEBT MANAGEMENTDEBT MARKETSDEBT OBLIGATIONSDEBT REPAYMENTDEBT REPAYMENTSDEBT RESTRUCTURINGDEBT SERVICEDEBTSDEMAND FOR BONDSDEVELOPMENT BANKDISBURSEMENTDISCLOSURE REQUIREMENTSDOMESTIC BORROWINGECONOMIC DEVELOPMENTECONOMIC GROWTHELECTRICITYENABLING ENVIRONMENTEQUITY CAPITALEQUITY MARKETSEQUITY STAKESEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXPENDITUREEXPENDITURE RESPONSIBILITIESEXPENDITURESEXTERNAL FINANCEFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL PERFORMANCEFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCIAL SUSTAINABILITYFISCAL DECENTRALIZATIONFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN FUNDSFOREIGN INVESTORSFOREIGN LOANGOVERNMENT BONDGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT GUARANTEEGOVERNMENT REVENUEGOVERNMENT REVENUESGOVERNMENT SUPPORTGROSS DOMESTIC PRODUCTIMPLICIT GUARANTEESINCOME LEVELINFORMATION DISCLOSUREINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCEINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINSTITUTIONAL DEVELOPMENTINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINTEREST RATEINTEREST RATESINTERGOVERNMENTAL TRANSFERSINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTINGINVESTMENT CAPITALINVESTMENT DECISIONSINVESTMENT FUNDINVESTMENT FUNDSINVESTMENT PORTFOLIOINVESTMENT PROJECTSINVESTMENT RATEINVESTMENT REQUIREMENTSINVESTOR INTERESTLAND USELAND VALUELAND VALUESLEGAL FRAMEWORKLENDERLENDERSLENDING DECISIONSLENDING INTEREST RATELEVIESLEVYLICENSESLOAN AGREEMENTLOCAL CURRENCYLOCAL GOVERNMENTLOCAL GOVERNMENT REVENUESLOCAL GOVERNMENTSLOCAL INFRASTRUCTURELOCAL MARKETLONG-TERM CAPITALLONG-TERM INSTRUMENTMACROECONOMIC STABILITYMANAGEMENT OPERATIONSMARKET ECONOMYMARKET FAILURESMARKET INFRASTRUCTUREMARKET MAKERSMARKET PRICEMARKET SIZEMATURITIESMATURITY MISMATCHESMATURITY PERIODMATURITY PERIODSMATURITY STRUCTUREMDFMUNICIPAL BONDMUNICIPAL BOND ISSUANCEMUNICIPAL BOND MARKETMUNICIPAL BONDSMUNICIPAL FINANCEMUNICIPAL INFRASTRUCTUREMUTUAL FUNDSNATIONAL GOVERNMENTSNON-PERFORMING LOANNON-PERFORMING LOANSNPLOUTSTANDING AMOUNTOUTSTANDING DEBTOUTSTANDING DEBTSPAYMENT OF DEBTPAYMENT OF INTERESTPENSIONPENSION FUNDSPORTSPRIVATE CAPITALPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPROPERTY RIGHTSPROVINCIAL GOVERNMENTSPUBLICPUBLIC ASSETSPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC DEBTSPUBLIC FINANCEPUBLIC FINANCESPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SECTOR DEBTREGULATORY FRAMEWORKREPAYMENTREPAYMENT CAPACITYRESERVERETURNRETURNSREVENUE SHARINGRISK ASSESSMENTSRISK FACTORRISK MANAGEMENTROADSSECURITIESSETTLEMENTSETTLEMENT SYSTEMSHORT MATURITYSHORT-TERM DEPOSITSSTATE BANKSUB-NATIONAL BORROWERSSUB-NATIONAL DEBTSUB-NATIONAL FINANCESSUBNATIONAL GOVERNMENTSTAXTAX RATESTAX REVENUESTIMELY PAYMENTTRANSPARENCYTREASURYTRUST FUNDTRUST FUNDSURBAN PLANNINGURBAN SERVICESURBANIZATIONVALUATION10.1596/17568