HCMC – The Vietnamese Government has proposed injecting VND38.25 trillion into the state-owned Vietnam Expressway Corporation (VEC) to enhance its finances and support ongoing expressway projects.
The proposal, submitted to the National Assembly, requests approval to reallocate VND36.69 trillion from public investment funds already designated for the Ministry of Transport (MOT) to supplement VEC’s charter capital.
This funding includes VND10.06 trillion from state budget-sourced reciprocal funds, VND24.13 trillion from official development assistance (ODA), and VND2.5 trillion earmarked for the Noi Bai-Lao Cai and Cau Gie-Ninh Binh expressways.
Additionally, the Government is seeking the National Assembly’s approval to increase VEC’s charter capital by VND38.25 trillion during the 2024-2026 period. This includes VND1.56 trillion from VEC’s Development Investment Fund and VND36.69 trillion from state budget allocations for five expressway projects under VEC’s management.
Currently, with charter capital of only VND1.12 trillion, VEC faces difficulties securing funding, particularly through commercial loans and infrastructure bond issuance. This financial constraint poses a challenge to meeting its 2021-2025 development targets and future project expansions.
The proposed capital injection is expected to bolster VEC’s financial capacity, improve funding access, and enhance expressway project management to support long-term growth.
Under the approved investment plan, VEC will utilize its own capital for key infrastructure projects, including the Ben Luc-Long Thanh Expressway (over VND7.55 trillion), the expansion of the HCMC-Long Thanh Expressway (around VND15 trillion), and the Yen Bai-Lao Cai Expressway (VND7 trillion) between 2021 and 2025.
The total estimated investment for these projects is VND14.89 trillion for 2021-2025 and VND17.05 trillion for 2026-2030.
