Vietnam copes with rapid urbanization, decentralization, high rates of economic growth, and globalization. There was wide agreement that a significant investment gap exists vis-à-vis municipal infrastructure investment. At the time, it was unlikely that the private financial markets in Vietnam were going to become in the near to medium term adequately deep or broad enough to meet Vietnam’s infrastructure financing needs. The absence of an appropriate institutional and legal framework at the provincial level for attracting private capital in infrastructure further compounded the problem. In general, Vietnam had not yet been able to establish appropriate channels for attracting direct and indirect long-term private sector investment into developmental infrastructure.