| As the foundation of a nation's economic growth, many governments have focused on infrastructure and basic industry. But owing to the shortage of capital funds, particularly in developing countries, the governments are so hard to invest in the construction of infrastructures. So TOT—a kind of new project investment &financing came into being. Comparing with the traditional investment & financing, TOT has shown its great strength. For example, TOT can absorb large quantity of funds from abroad to put into the construction of infrastructures, which can also decrease the government's great pressure on capital. Moreover, government in TOT does not need any financial guarantee. So it helps the government avoid the risks on debt. In addition, TOT can introduce the advanced technology and management, raise the operating efficiency and use capital of TOT to build other infrastructure projects... Now different countries in the construction of infrastructure and basic industry have implemented TOT widely.Since the reform and opening- up in Vietnam, the nation's economy has been developed rapidly. But infrastructure and basic industry have been the bottleneck in the process of economic growth. On one hand, also encounters the scarcity of capital just like the other developing countries. On the other hand, the industrial structure of foreign investment is not good. Most of them have been thrown into manufacturing industries, housing and real estate industries. The proportion in infrastructures is much lower. Under this situation, it is very urgent for Vietnam to recommend and spread TOT projects in order to guide the efficient use of foreign investment and promote the development of economy.TOT way has offered one shortcut to foreign investor to manage the market of Vietnamese infrastructure, so that the foreign investor can share in the revenue from the Vietnamese economy of high-speed development; TOT way has possible offered the financing of participating in the infrastructure... |
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