New PPP law improves quality of public service (VOV) -Maintaining the balance between public ownership and outright privatization for Public-Private Partnerships (PPP) is the key to delivering quality public services, said ADB Country Director for Vietnam, Tomoyuki Kimura. Kimura made the remarks at the launch of the Asian Development Outlook 2014 economic publication in Hanoi on April 1, which parallels the main launch of ADB’s flagship publication in Hong Kong, China. He suggested that Vietnam strengthen its legal framework to encourage more private investment in developing public infrastructure, making the cost of constructing it more affordable and in turn reducing the fees charged for services, especially benefiting the poor. A longer-term challenge is improving the quality of infrastructure in Vietnam, he emphasised, adding that attracting private investment through the PPP model has many advantages to this end.  It contributes to funding infrastructure projects, gaining access to international expertise as well as access to advanced modernised technology that improves the quality of the physical infrastructure in addition to the quality of services, he said. Asian Development Outlook 2014 forecasts Vietnam’s GDP growth to rise slightly to 5.6% in 2014, picking up further to 5.8% in 2015. Inflation is projected to average 6.2% in 2014, assuming reasonably stable food production, moderate policy stimulation, and only slight depreciation of the dong. Inflation is forecast to average 6.6% in 2015 as economic activity picks up. It advocates financial sector reforms be undertaken including stepped up efforts by State Bank of Vietnam to supervise bank lending, merger and restructuring of some weaker banks, and eased restrictions on foreign investment in domestic banks. It also acknowledges initiatives regarding the new loan classification and provision standards intended to close the gap with international norms that will come into effect in June 2014 are a positive step for the economy. Asian Development Outlook 2014 is a flagship publication, which provides assessment of recent economic developments in Asia and the Pacific and medium-term macroeconomic projections for the region. VOV