Monday,  Jul 16, 2018,04:23 (GMT+7) 0 0
Road maintenance fund alone fails to meet demand
The Saigon Times Daily
Wednesday,  Sep 27, 2017,18:28 (GMT+7)

Road maintenance fund alone fails to meet demand

The Saigon Times Daily

HCMC - The road maintenance fund has collected nearly VND30 trillion (about US$1.32 billion) from automobile owners nationwide over the past five years but it cannot meet the country’s actual financial needs for road maintenance, said the Ministry of Transport.

According to Lao Dong newspaper, since it was established in 2013, the fund has contributed 65% to the country’s total investment in road maintenance.

In 2017 alone, the fund is expected to collect over VND7 trillion. Thanks to the number of vehicles having risen in recent years, road maintenance fee collection revenues have increased 106-255% annually.

However, the fund can only meet 45% of the country’s actual demand for road maintenance, with the balance coming from the State budget.

According to the Ministry of Transport, as of 2012, Vietnam had about 280,000 kilometers of road. Most of the roads have deteriorated and are narrow, causing traffic accidents and jams.

Since the road maintenance fund was established, road maintenance nationwide has improved. Some 65% of the road maintenance fund is distributed to localities to do road repairs and upgrades.

However, many localities have cut their own budget for road maintenance after their projects are financed by the fund. Besides, complicated procedures for capital disbursement have resulted in slow and poor maintenance.

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