HCMC – The Ministry of Construction has proposed expanding the North-South Expressway using public capital, citing difficulties in attracting investors under the public-private partnership (PPP).
In a report on plans to expand certain sections of the eastern North-South Expressway under the PPP, the Ministry of Construction has recommended prioritizing sections along the Hanoi-HCMC corridor to meet national planning standards.
There are 18 component projects within this scope, including eight launched in 2017-2020 and 10 in 2021-2025, with a total length of 1,144 kilometers.
The ministry has suggested expanding these routes to six lanes, with an estimated total cost of around VND152.1 trillion.
The ministry has estimated that if the 18 expressway sections were divided into separate BOT (build-operate-transfer) projects, as done previously, four public investment projects from the 2017–2020 phase could be financially viable.
These projects, covering a total of 255 kilometers and requiring around VND26.7 trillion, include the Mai Son-National Highway 45, National Highway 45-Nghi Son, Nghi Son-Dien Chau, and Phan Thiet-Dau Giay sections.
As key gateway routes with high traffic demand, they are projected to recoup investment through toll collection within 3 to 13 years, without needing support from the state budget.
Regarding the three BOT projects (Dien Chau-Bai Vot, Nha Trang-Cam Lam, and Cam Lam-Vinh Hao), the ministry noted that since investors have already mobilized resources for implementation, expanding these routes to six lanes would pose significant challenges.
The remaining 11 component projects, funded by public investment, have a combined length of 711 kilometers and a total investment of over VND100 trillion. These are mostly located in areas with currently low transport demand.
If the expressway expansion is carried out under the public-private partnership (PPP), the average capital recovery period through toll collection could reach up to 27 years. Some projects, such as the Quy Nhon-Chi Thanh section, may face financial infeasibility and would require state budget support.
Currently, public investment capital already allocated or under implementation accounts for about 57% of the total cost to expand the expressway to six lanes.
To accelerate public investment disbursement and ensure efficiency, the ministry said state funds should continued to be used for the expansion, followed by toll collection starting in January 2026 to reimburse the state.
This approach would help maintain reasonable, non-commercial toll rates while balancing the interests of the Government, the public, and businesses.
