While Ho Chi Minh City has greenlit 23 sports and cultural projects under public-private partnership (PPP) agreements, concerns arise as experts note a reluctance among private investors to back these initiatives.
These projects target the construction, renovation, or enhancement of performance arts centers, theaters, and sports facilities; however, apprehensions about their attractiveness to private sector investors are on the rise.
Vu Tu Thanh, Deputy Regional Managing Director of the U.S.-ASEAN Business Council, an advocacy group fostering trade connections between the U.S. and ASEAN members, highlighted that some theater and stadium projects lack sufficient revenue-to-cost ratios to entice investor contributions.
Karasawa Masayuki, a representative from the Japan International Cooperation Agency’s Vietnam office, proposed that HCMC authorities explore alternative models beyond the existing build-transfer (BT) framework.
He suggested contemplating the build-operate-transfer (BOT) model, wherein investors manage the project for a designated period before returning it to the government, as it might provide more incentives for private investment.