The Minister of Health, Dao Hong Lan, highlighted three key reasons why the second facilities of Bach Mai Hospital and Viet Duc Friendship Hospital, with a combined investment of nearly VND 10 trillion, have remained incomplete 10 years after groundbreaking.

In a petition submitted before the 8th session of the 15th National Assembly, voters in Ha Nam Province urged the government to take decisive actions to expedite the completion of the two projects. They emphasized the importance of these facilities in easing overcrowding at central hospitals and improving healthcare accessibility for surrounding provinces.

In response, Minister Dao Hong Lan outlined the background and challenges surrounding these projects.

Background of Bach Mai and Viet Duc hospitals' second facilities

Minister Lan explained that the projects were approved in 2014 with a design capacity of 1,000 beds each and a total investment of approximately VND 4.99 trillion per project (USD 205 million at current exchange rates). Of this, VND 4.5 trillion came from the state budget, with the remainder sourced elsewhere. Construction began in 2015, with an initial completion target set for 2020, later extended to 2024.

As of now, over 90% of the infrastructure and architectural work has been completed. The projects are divided into EPC (Engineering, Procurement, and Construction) packages with adjustable pricing contracts.

However, the projects faced delays due to challenges in contract price adjustments. These difficulties led contractors to halt construction in December 2020.

Reasons for project delays

Minister Lan identified three main reasons for the delays:

Complexity of large-scale EPC projects: These were among the health sector’s largest EPC projects. Both the Ministry of Health and contractors underestimated the complexities involved, especially in managing these types of contracts.

Limited capacity of the investor: The project's managing entity lacked adequate knowledge of contract law and experience in overseeing EPC projects, which further exacerbated the delays.

Impact of the COVID-19 pandemic: The pandemic diverted the Ministry of Health’s resources toward combating COVID-19, leaving limited capacity to address the obstacles faced by these projects.

Additional complications arose due to the need for design adjustments, including the addition of new departments and functional changes to meet the specialized requirements of Bach Mai and Viet Duc hospitals. Initial contracts did not clearly define principles or methods for price adjustments, making it difficult to amend the agreements following these changes.

Current status and future plans

Construction resumed in November 2024 after a resolution to the contract pricing issues. Minister Lan confirmed that the Ministry of Health would prioritize resources to ensure completion by 2025.

Deputy Minister of Health Le Duc Luan revealed that the original medical equipment procurement plans for the projects, approved in 2014–2015, would be reviewed and updated. Each project is expected to allocate VND 1 trillion (USD 41 million) for new equipment purchases.

On January 8, 2025, the Government Inspectorate announced a 40-day inspection of the projects, covering the period from January 1, 2014, to December 31, 2024. This review may extend to activities outside this timeframe if necessary.

The investigation was initiated following a directive from General Secretary To Lam, who called for transparency in these projects and requested a conclusive report by March 31, 2025.

Vo Thu