Xuan Quynh LLC Joins PHILUX Global Funds to Participate in Luxembourg-based Infrastructure Fund for Vietnam and Laos
New York, Nov. 29, 2020 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com, PHIL), announced today that Xuan Quynh Limited Liability Company, a Vietnamese infrastructure construction and development company, has signed an
agreement with PHI Luxembourg Development SA, the mother holding company for PHILUX Global Funds SCA, SICAV-RAIF, to join its “PHILUX Infrastructure Fund” compartment as a new partner in the
first-ever Luxembourg-based infrastructure fund initiated for investment in Vietnam and Laos.
As one of the fastest growing economies in ASEAN, Vietnam is currently demanding for more foreign financial investment and technical assistance to narrow its infrastructure gap. According to the Global Infrastructure Outlook, Vietnam requires an investment of US$605 billion to meet 83 per cent of its infrastructure goals by 2040. Among the sectors that have been given utmost priorities are the urban transportation, road, rail and port infrastructure.
Currently, just 20 per cent of the country’s national roads are paved, and a recently approved plan to build Vietnam's North-South high-speed railway, which allows passengers to travel between capital Hanoi and Ho Chi Minh City in about eight hours, will cost about 26 billion U.S. dollars.
The rising population in major cities in recent years has strained and exceeded capacity of the existing connectivity networks and utilities systems. With 50% of Vietnam’s population expected to be living in cities, Hanoi and Ho Chi Minh are building rapid transit systems exceeding US$22 billion in the hope of reducing private vehicle ownership and improving air quality.
Various expressway projects are planned and underway to improve connectivity within major cities. Similarly, development and upgrading of urban utilities infrastructure are announced and there are 44 planed PPP projects with total investment value worth up to US$ 120 billion in the road and power sectors.
Besides supporting infrastructure development for industrial zones, transportation, urban areas, seaports and airports in Vietnam, Xuan Quynh LLC intends to utilize the Luxembourg infrastructure fund for a number infrastructure projects in Laos as well.
Laos is one of the fastest growing economies in Southeast Asia region, with its average GDP growth rate for the last 20 years exceeding the level of 7 percent annually, one of the highest among ASEAN states. Nonetheless, inadequate infrastructure has been usually referred to as a major constraint to socio-economic development in Laos. Rapid economic growth has come with an increase in energy demand while power infrastructure in Laos is still under development. Telecommunication is another issues that needs to be addressed. But the most critical issue of Laos’ infrastructure is the road transportation system. As a completely landlocked country, road transport is the only means for improving socio-economic development through infrastructure. Unfortunately, road infrastructure in Laos is still limited, and according to the World Bank, only 56% of the rural population in Laos has access to all-season road. Thus, turning the country from a land-locked into a land-linked one is one of the most priorities of the Lao government, and this will see Laos as a connection hub among neighboring countries, bridging the more advanced economies of China, Thailand and Vietnam.