Private enterprise proposes to invest in expanding the North-South expressway under the PPP method

Deo Ca Group has proposed to the Prime Minister that it plans to join forces with domestic enterprises to expand the eastern sections of the North-South Expressway under the public-private partnership (PPP) model.

Recently, the Government has resolutely implemented investment in the eastern North-South Expressway project to meet the needs of socio-economic development, ensure national security and defense, and gradually complete the infrastructure connecting economic and political centers and key economic regions.

Of which, about 1,375km of investment has been carried out with a scale of 2 to 4 lanes, including 654km (phase 2017-2020) completed and put into use, 721km (phase 2021-2025) is being urgently completed and put into use in 2025-2026.

However, the exploitation process has caused some problems due to the limited scale of 2-lane or 4-lane highways such as: potential risks of insecurity, traffic jams, traffic accidents, not meeting the needs of economic development in the condition of forecasted traffic volume tending to increase due to changes in economic growth targets in the current conditions of the promulgation of National Technical Regulations on Highways.

Deputy Prime Minister Tran Hong Ha directed the Ministry of Construction to study the project to expand eastern sections of the North-South Expressway.

To address the above situation, in the Conclusion Notice No. 229/TB-VPCP dated May 14, 2025, Deputy Prime Minister Tran Hong Ha directed the Ministry of Construction to study the project to expand the eastern sections of the North-South Expressway, including calculating the option of transferring toll collection rights combined with upgrading and expanding assets according to the planning and urgently completing the dossier to submit to the National Assembly at the 9th Session of the 15th National Assembly, striving to start construction of a number of component projects in December 2025.

Resolution 68-NQ/TW continues to spread to businesses in the transport sector. Recently, Deo Ca Group has sent a document proposing to Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha to study investment in expanding the eastern sections of the North-South Expressway under the PPP method.

According to Mr. Nguyen Quang Huy, General Director of Deo Ca Group, since the policies and laws on the PPP model still had many limitations and shortcomings, Deo Ca Group has been proactive, creative, and joined forces with many other domestic enterprises to come up with solutions to invest in the country's important transport infrastructure under the PPP method, gradually affirming its leading position in this field with large-scale projects nationwide, ensuring progress and quality with modern technology and techniques.

“With the spirit and responsibility of implementing Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development, we are clearly aware that businesses cannot just wait for barriers, limitations, and prejudices to be removed, but must accompany from the beginning to contribute to the success of a major and unprecedented policy of the Party and State,” said Mr. Nguyen Quang Huy.

The Resolution has clarified practical issues that Vietnamese enterprises have experienced, at the same time the State flexibly has policies on ordering, limited bidding or designated bidding and has preferential policies to encourage the private economic sector to participate with the State in strategic areas...

In particular, promoting the PPP method in investment in economic, cultural and social infrastructure is identified as the main direction, with socio-economic efficiency as the measure of choice.

Construction of asphalt concrete pavement on the North-South expressway.

The document of Deo Ca Group stated that, considering the capacity of Vietnamese enterprises and Deo Ca Group in the process of implementing the development of the country's infrastructure system, on the basis of the Conclusion Notice No. 229 of Deputy Prime Minister Tran Hong Ha on the implementation of research to expand the eastern sections of the North-South Expressway, Deo Ca Group proposed that the Prime Minister chair a meeting with relevant ministries and branches to consider:

Firstly, Deo Ca Group is assigned to coordinate with the Ministry of Construction to study and select a route to propose the North-South Expressway expansion project in the East, phase I, investing under the PPP method on the principle that enterprises proactively arrange finance (from legal domestic capital sources), not using State budget capital, balancing revenue to repay the project and contributing to the State budget during the exploitation process.

Second, assign the Ministry of Construction to preside over and work with the Ministry of Finance with Deo Ca Group to consider the policy of public investment combined with PPP investment in the expansion phase of the eastern North-South expressway. Deo Ca Group will preside over the study and proposal of a project connecting domestic enterprises to join forces to implement it.

Also on the basis of the approved proposal for the expansion project of the eastern North-South Expressway, Deo Ca Group also proposed that the Prime Minister assign this enterprise to implement the project using the PPP method according to the policy in Part III, Section 6 of Resolution 68-NQ/TW and the provisions of the PPP Law and the Road Law.

The investor commits to using equity capital and mobilizing domestic capital sources to implement the project, and at the same time contributing to the State budget on the basis of organizing investment capital balance and counting and auditing actual revenue flow of the routes.

To shorten the implementation progress and promote investment efficiency, Deo Ca Group proposed that the project be applied with specific mechanisms and policies on compensation, support, resettlement; dumping sites and mineral exploitation for materials; the investment decision maker is allowed to apply the form of appointing investors; converting forest use purposes to other purposes and temporarily using forests.

Construction of road tunnel on the North-South expressway.

During the project implementation, the investor will take over all existing works to manage and exploit, organize toll collection to implement the road expansion construction to ensure safe and continuous traffic. Investment under the PPP method will help save the state budget in the context of the budget needing to focus on many other economic development goals, while ensuring effective management and exploitation of state assets.

“A similar investment method has been successfully applied to the Hai Van tunnel project and is currently being implemented in the Ho Chi Minh City-Trung Luong-My Thuan expressway expansion project,” said Mr. Nguyen Quang Huy.

When appointed as the investor to implement the project, Deo Ca Group, the head of the consortium, pledged to promptly carry out procedures to start the project to celebrate the 79th anniversary of National Resistance Day (December 19, 1946 - December 19, 2025) and welcome the 14th National Party Congress.

According to research by Deo Ca Group, just investing in expanding 5 expressway sections that are being exploited but not yet collecting tolls (Mai Son-National Highway 45, National Highway 45-Nghi Son, Nghi Son-Dien Chau, Vinh Hao-Phan Thiet and Phan Thiet-Dau Giay) under the PPP method will reduce the burden on the State budget by more than 37,000 billion VND.

In case of investment in expanding the entire North-South Expressway (over 1,100km) under the PPP method, the State budget will be saved by VND 152,000 billion. However, in order to shorten the implementation time of the expansion project, Deo Ca proposed to combine public investment and PPP investment.

With experience in investing in more than 300km of expressways under the PPP method and participating in the construction of more than 500km of expressways, Deo Ca Group believes that organizing the construction of expanded routes combined with toll collection will help optimize capital sources, ensure revenue transparency, thereby affirming the feasibility and effectiveness of the financial plan.

Source: https://baotuyenquang.com.vn/doanh-nghiep-tu-nhan-de-xuat-dau-tu-mo-rong-duong-cao-toc-bac-nam-theo-phuong-thuc-ppp-212218.html