Over 6.2 billion USD needed for expanding North-South expressway

A section of the North–South Expressway with a limited four-lane configuration has been put into operation. (Photo: Vietnam+)

Hanoi – The Ministry of Construction has proposed expanding the 1,144-km eastern wing of North-South expressway from Hanoi to Ho Chi Minh City from four to six lanes, at an estimated cost of 152.1 trillion VND (around 6.2 billion USD).

In its report to the Prime Minister, the ministry outlined special investment mechanisms, including the appointment of contractors for consultancy and construction packages, with a preference for firms that have previously worked on sections of the expressway. Additionally, construction companies will be exempted from mining permits for common building materials.

If approved, the ministry aims to secure the legislature’s investment policy approval by June 2025, with construction expected to begin in the fourth quarter of this year. The project is projected to disburse between 23–35 trillion VND (940 million - 1.43 billion USD) in 2025, with the remaining between 2026 and 2027.

Officials emphasised that the upgrade is essential to accommodate rising traffic demand, support the target of 8% GDP growth, and help achieve a GDP of 500 billion USD in 2025. It is also expected to enhance traffic safety and address the limitations of the current four-lane expressway.

PM urges stronger efforts to complete expressway target Prime Minister Pham Minh Chinh has asked for greater efforts from ministries, sectors, and localities to realise the goal of completing 3,000 km of expressways nationwide by December 31, 2025.

Nearly 1,200 km of North-South corridor expressway put into operation The North-South corridor expressway, running from Huu Nghi border gate to Ca Mau, is 2,063 km long as designed. As of May 2024, a total of 1,187 km have been put into operation, 861 km are under construction, and the remaining 15 km are under preparation for investment.

Public bonds crucial for fast-tracking North-South Expressway The need to accelerate the North-South Expressway project by securing funding through public bond issuance with attractive interest rates to ensure swift completion and at acceptable cost is critical for regional economic growth.

East expressway axis localities tighten links Four localities along the eastern portion of the North-South Expressway are strengthening connectivity as part of the race to pull in foreign capital.