More than two dozen road construction projects prioritised for investment in 2021-2025

August 25, 2021 | 21:29

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The Ministry of Transport (MoT) has issued Report No.7066/TTr-GTVT asking the prime minister's approval for the road system plan for the 2021-2030 period, with a vision to 2050.

More than two dozen road construction projects prioritised for investment in 2021-2025

By 2030, 5,000km of highways will be operational

In its draft plan, the MoT targets that by 2030, Vietnam would successfully complete a system of highways connecting economic and political centres, key economic regions, seaports, and international airports. In addition, around 5,000 kilometres of highways would be constructed.

The ministry also highlighted 25 road construction projects prioritised for investment in 2021-2025.

Accordingly, the total investment capital in the road network by 2030 is expected to account for about 48 per cent of the investment in the transport industry.

The MoT would also prioritise state budget to support investment projects in the form of public-private partnerships (PPP) and projects that cannot attract foreign capital or those in disadvantaged and vulnerable zones.

The ministry would also encourage local authorities to apply for official development assistance and the state budget, to make funding efficient.

Assoc. Prof. Dr. Tran Chung, chairman of the Vietnam Association of Road Traffic Investors, said that the local government should come up with a breakthrough mechanism and prioritise financial resources to further boost transport infrastructure development. In the past five years, no PPP infrastructure projects have been implemented because investors have depended on credit sources from financial institutions, while banks have limited lending activities to infrastructure projects due to their risky nature.

He also added that businesses can raise capital from bond issuance and unlock financial resources in society, instead of their "wait-and-see” approach or merely depending on banks’ capital.

"To build 5,000km of expressway by 2030, we need a more comprehensive, thorough development plan under intensive supervisory process to mobilise significant resources. Furthermore, a favourable policy mechanism is an essential part of the game," Chung said.

The list of 25 projects prioritised for investment in 2021-2025 includes the following items:

1. Four sections of the North-South Expressway to the East

2. Belt Road No.3 Ho Chi Minh City

3. Belt Road No.4 Hanoi

4. Chau Doc-Can Tho-Soc Trang-Tran De Expressway

5. An Huu-Cao Lanh Expressway

6. Chon Thanh-Duc Hoa Expressway

7. My An-Cao Lanh Expressway

8. Cao Lanh-Lo Te-Rach Soi Expressway

9. Buon Ma Thuot-Van Phong Expressway

10. Bien Hoa-Vung Tau Expressway

11. Ho Chi Minh City-Moc Bai Expressway