return icon

Government invests in 12 more projects along North-South Expressway

The Government proposed another 12 projects covering 729km of road on the North-South Express, according to the Ministry of Transport.

Construction of Mai Son-Highway section 45 on the North-South Expressway. Photo

Last Tuesday, the Government submitted the National Assembly a pre-feasibility study of the 12 projects.

All 12 projects were proposed to be implemented in the form of public investment.

After that, the government will collect fees or franchise fee collection to recover capital.

Previously, the ministry proposed the public-private partnership (PPP) investment form for four out of the 12 projects.

The 12 projects would capitalise a total investment of VND146,990 billion (US$6.49 billion), of which the construction costs are VND95,837 billion ($4.23 billion), site clearance and resettlement are VND19,097 billion ($843.5 million), project management, and consulting fees of VND12,015 billion ($530.8 million), and provision expense at VND20,041 billion ($885.2 million).

The 12 projects include Bai Vot - Ham Nghi, Ham Nghi - Vung Ang (in Ha Tinh Province) Vung Ang - Bung, Bung - Van Ninh and Van Ninh - Cam Lo (in Ha Tinh, Quang Binh and Quang Tri provinces), Quang Ngai - Hoai Nhon, Hoai Nhon - Quy Nhon, Quy Nhon - Chi Thanh (in Quang Ngai, Binh Dinh and Phu Yen provinces), Chi Thanh - Van Phong and Van Phong - Nha Trang (in Phu Yen and Khanh Hoa provinces), Can Tho - Hau Giang, Hau Giang - Ca Mau (in Can Tho, Hau Giang, Kien Giang, Bac Lieu and Ca Mau provinces).

The Government also set out a two-year roadmap to prepare for investment, site clearance and resettlement, to start the projects in mid-2023 and have them completed by 2025.

Regarding the reasons for not investing in four projects in the PPP form, the Government said that the actual implementation of PPP projects in recent years encountered many difficulties and problems.

From 2017 to 2020, the Government carried out 11 projects on the North-South Express, of which eight were PPP investments and three were public investments.

However, due to the outbreak of the COVID-19 pandemic, banks spent a large amount of credit capital to support businesses and people, so they could no longer prioritise credit for medium and long-term loans anymore.

So, five PPP-invested projects of road sections of Mai Son – Highway 45, Vinh Hao - Phan Thiet, Phan Thiet - Dau Giay, Highway 45 - Nghi Son and Nghi Son - Dien Chau were converted for public investment.

The three PPP-invested projects of Dien Chau - Bai Vot, Nha Trang - Cam Lam and Cam Lam - Vinh Hao were assessed to be financially efficient, but there was still difficulty in mobilising capital.

It was expected that the total amount of credit loans from banks of the three projects was about VND6,500 billion ($287.5 million) out of VND9,000 billion ($398.1 million) of loan demand.

According to the Government's assessment, expressway projects had a large total investment and a long capital recovery thanks to taxes on tolls.

During the implementation of the contracts, the projects’ revenue might be reduced due to the impact of many factors, so investors and credit institutions consider expressway projects to be an unattractive investment field with many potential risks.

Additionally, PPP highway projects had not yet attracted investors with financial potential, so capital mobilisation depends on only banks.

The Government had guided the ministry to consider investment plans for all projects under the PPP form. However, in the current context, the probability of success is not very high.

In the event of failure, investment must be sought from different avenues, to ensure the schedule of completion by 2025 is met.

Source: Vietnam News

More than 700km of North-South Expressway to be built

More than 700km of North-South Expressway to be built

The Ministry of Transport has submitted plans to build more than 700 kilometres of extra road on the east sections of the North-South Expressway.

Govt wants public funding for all North-South expy subprojects

Govt wants public funding for all North-South expy subprojects

The Government on November 15 suggested that the National Assembly (NA) approve public funding for all 12 subprojects of the 729-kilometer North-South expressway project in the 2021-2025 period.


Curbing inflation: the optimal goal of monetary and fiscal policies

Monetary and fiscal policies have been tightened to fight inflation in Vietnam (though it is among the lowest in the world), instead of aiming to recover production and boost growth, which is needed after several years of pandemic.

Businesses seek capital as banks run out of ‘credit quota’

Businesses in many fields have voiced their concerns about the lack of capital from banks.

Businesses complain about customs procedures, import taxes

Businesses still must visit ministries in Hanoi to complete paperwork, which they consider a big waste of time and money. They are also concerned about high import taxes.

Vietnam contributes to International Law Commission

Vietnamese Ambassador Nguyen Hong Thao has pledged to make more contributions to the progress and development of international law, for peace, friendship, cooperation and sustainable development worldwide.

Pencak silat fighter enjoys golden year

Pencak silat fighter Quang Thi Thu Nghia has had amazing year of competition when she has won titles from all competitions that she took part in.

Pop singer to compete at MTV Europe Music Awards

Pop singer Pham Dinh Thai Ngan from HCM City will represent Vietnam at the MTV Europe Music Awards (MTV EMA) 2022.

PM hosts national committee on digital transformation’s third session

Prime Minister Pham Minh Chinh chaired the third meeting of the National Committee on Digital Transformation on August 8 to assess digital transformation pace during the first half of 2022 and devise tasks for the time ahead.

Liem to face off against chess king Carlsen at FTX Crypto Cup

Vietnam’s leading chess player Le Quang Liem has revealed that he will take on Norwegian chess king Magnus Carlsen at the FTX Crypto Cup which is scheduled to take place in Miami, USA, from August 15 to August 21.

Vietnam ranks third overall at ASEAN Para Games 2022

Vietnamese athletes bagged seven more gold medals on August 5, the last competition day of the ASEAN Para Games 2022, retaining their third place in the medal tally.

Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development