HCMC – Deputy Prime Minister Ho Duc Phoc has told the Vietnam Expressway Corporation (VEC) to settle nearly VND5.5 trillion in bond debt owed to the Ministry of Finance (MoF).
VEC has reimbursed over VND2.5 trillion of the VND5.3 trillion principal which the ministry represented VEC to pay for the Cau Gie–Ninh Binh and Noi Bai–Lao Cai expressways. This means it still owes around VND2.8 trillion in principal but the amount of interest is VND5.5 trillion, according to a report of VEC.
The ministry has repeatedly told VEC to fulfill its debt obligations under its credit agreements. From 2024 to 2030, VEC is required to repay the ministry a total of VND9.5 trillion.
VEC has highlighted the urgent need for VND9.4 trillion to complete the Ben Luc–Long Thanh expressway. Without debt rescheduling, the company risks a cash flow shortfall that could jeopardize its ability to service official development assistance (ODA) loans and fund critical projects, including the expansion of the HCMC–Long Thanh expressway.
To address these challenges, VEC has proposed raising its charter capital to VND40 trillion, which it believes could enable the company to mobilize up to VND120 trillion for ongoing and future projects.
Deputy Prime Minister Phoc stated that extending VEC’s debt repayments would require approval from the National Assembly. He directed the ministry to reassess VEC’s repayment plan, focusing on clarifying the outstanding principal and interest amounts.
Phoc also acknowledged regulatory gaps in the transition from capital allocation to charter capital investment, which have complicated financing for five expressway projects, four of which have already been approved by the PM.
The Government has recommended that VEC explore borrowing from government bond proceeds to settle its debts and continue project implementation. VEC was instructed to finalize a comprehensive proposal, detailing its repayment and capital increase plans, for submission to the National Assembly in December.
