The government said in a statement on its website that the country will have to seek funding from new sources, including from the private sector, due to constraints on the state budget.

Vietnam has been relying heavily on the state budget for developing its roads, waterways and railways, which have been inadequate to support the country’s economic growth, which has been among the highest in Asia in recent years.

Official development assistance, including low-interest loans and grants from foreign donors, has also been a key source of funds for infrastructure projects in Vietnam, but that is expected to shrink as Vietnam has now become a middle-income country.

The country’s budget deficit is also widening as revenue from crude oil, which accounts for around a quarter of total state budget revenue, has fallen significantly following the recent decline in global crude oil prices. The government said the budget deficit is expected to increase to 6.5% of the gross domestic product over the next couple of years from an estimated 5.3% this year.

Earlier this year, Prime Minister Nguyen Tan Dung said Vietnam will “create favorable conditions” to encourage private and foreign investment in infrastructure projects, adding that projects using the state budget are more prone to corruption.

Vietnam has been focusing its resources on building roads without paying enough attention to developing its railway and waterway systems, said La Ngoc Khue, former deputy minister of transport at a conference Monday in Hanoi.

According to a report released at the conference by the Bank for Investment and Development of Vietnam, only 32% of the roads in Vietnam are in good condition, while the remaining 68% are substandard and need to be rebuilt or upgraded.

By Vu Trong Khanh - The Wall Street Journal - September 8, 2015