"Removing obstacles" for the Bac Giang – Lang Son BOT expressway project.

The project was completed at lightning speed, solving the problem of traffic congestion and accidents on National Highway 1.

The BOT project to invest in and construct the Bac Giang - Lang Son City expressway section from Km45+100 to Km108+500, combined with upgrading the surface of National Highway 1 section from Km1+800 to Km106+500, has been implemented since 2015.

As you may recall, more than two years after the groundbreaking ceremony, this project remained stalled due to incomplete procedures and contracts. The then-investor (led by UDIC) demonstrated weakness by failing to raise sufficient equity capital as required.

The project's situation only changed for the better when the Ministry of Transport (now the Ministry of Construction ) proposed that Deo Ca Group replace the previous investor, "rescuing" the project with a total investment of over 12,000 billion VND, entirely without using state capital.

Just two years later, on January 15, 2020, this nearly 65-kilometer-long expressway officially opened for operation. Experts consider it a remarkable achievement in terms of progress in the transportation sector, fulfilling the aspirations of the Government and the people.

To ensure transparency and objectivity in the project implementation process, Deo Ca Group proactively invited the State Audit Office to conduct inspections and supervision. In the period from 2017 to 2020 alone, five audit conclusions were issued. These conclusions noted the difficulties and obstacles faced by the project and the investor, assessed compliance with the law, and recommended that the State consider providing budgetary support for the project.

According to the investor's representative, after more than 5 years of operation, the expressway has served over 11 million vehicles safely and smoothly, while National Highway 1 has served over 18 million vehicles, ensuring stable traffic flow. However, obstacles regarding the allocation of state budget funds to support the project remain unresolved.

According to the BOT contract, the project is allowed to collect tolls to recover investment costs at two toll stations on National Highway 1 (at Km24+800 and Km93+160) and other stations on the expressway. In reality, during operation, toll revenue only reached 31.06% of the initial financial plan, insufficient to cover the principal and interest payments to the bank.

According to the investor's representative, the project requires the removal of one toll station on National Highway 1 (the toll station at Km24+900), leading to a reduction in revenue throughout the toll collection period (a reduction of nearly 5,500 billion VND according to the financial plan), affecting the traffic distribution ratio between National Highway 1 and the expressway, and reducing traffic volume on the expressway.

The 63km Bac Giang - Lang Son expressway was completed at a rapid pace in just two years after being rescued. However, more than five years after its completion, the project's financial obstacles, which are causing difficulties for the investor, still remain.

In addition, the failure to implement the planned toll increases under the BOT contract resulted in losses of 171 billion VND. The policy of exempting or reducing tolls for approximately 5,000 vehicles within a 10 km radius around the Km93+160 toll station caused a revenue decrease of 72 billion VND during the period 2018-2024.

Therefore, the People's Committee of Lang Son province reported to the Government in Document No. 402/BC-UBND dated August 13, 2024, and Submission No. 23/TTr-UBND dated March 6, 2024, requesting an additional VND 4,600 billion from the state budget for the project (accounting for 37.75% of the total investment, less than the 50% stipulated in Clause 1, Article 69 of the PPP Law).

To date, investors are still anxiously awaiting the resolution of obstacles from competent authorities so that the project can continue to operate effectively. “When the project encountered difficulties, the investor accepted the challenge of mobilizing resources, working simultaneously, and resolving issues to bring the project to completion, creating momentum for socio-economic development in the region. Therefore, when facing inadequacies in institutional policies, investors urgently need the joint efforts of local authorities and management agencies to resolve these difficulties,” a representative of the investor stated.

There are outstanding issues that need to be addressed and resolved definitively by the state authorities.

Speaking to the press, Mr. Ho Minh Hoang, Chairman of the Board of Directors of Deo Ca Group, affirmed that the completion of the Bac Giang - Lang Son expressway project is the result of the unity of the people and especially the close support and guidance of the People's Council and People's Committee of Lang Son province throughout the years.

Specifically, during a period when the project faced difficulties due to a case involving the previous investor, causing it to stall for nearly 5 years, the then Secretary of the Lang Son Provincial Party Committee, Mr. Tran Sy Thanh (now the Chairman of the Central Inspection Committee), directly encouraged the new investor, Deo Ca Group, to take responsibility for "rescuing" the project. He also agreed on a plan to remove one toll station to avoid the inconsistency of placing stations at both ends of the route, as the previous investor had agreed with the State, which would conflict with the interests of the people. This project was completed with 63 km in just 18 months (a record for the fastest land clearance and highway construction at that time).

Continuing in that spirit, Mr. Nguyen Quoc Doan (now Deputy Chief Inspector of the Government), Secretary of the Lang Son Provincial Party Committee for the 2021-2024 term, also repeatedly encouraged and supported investors and businesses involved in the project, proactively resolving obstacles in the Bac Giang - Lang Son BOT project and promoting the connection of the Huu Nghi - Chi Lang expressway to eliminate the bottleneck (when there were still 30 km left to reach Lang Son City). All of this created the foundation for connecting and implementing the Dong Dang - Tra Linh - Cao Bang project by reducing the investment from 42,000 billion VND to 21,000 billion VND through route optimization.

“The spirit of partnership from the leaders of Lang Son province throughout the years has been a solid foundation for the project to be completed on schedule, contributing to creating a basis for the implementation of the next two key projects, Huu Nghi – Chi Lang and Dong Dang – Tra Linh. This is also an important step towards the goal of completing 3,000 km of expressways nationwide by 2025 as directed by the Prime Minister,” commented the investor's representative.

In the process of finding solutions to the obstacles, the coordinated involvement of agencies, including the Government Inspectorate and the Party Committee and government of Lang Son province, is considered a key factor in ensuring fairness, transparency, and promoting the early completion of the project support mechanism.

In late July 2025, the Bac Giang – Lang Son expressway project was included in the list of projects facing difficulties and obstacles under review by the Government Inspectorate, as compiled by the Ministry of Construction.

*At numerous meetings, investors have expressed their hope that the obstacles will be resolved by the competent authorities so that the project can continue to operate effectively.*

In its inspection report dated October 14, 2025, the Government Inspectorate concluded that, in the context of very difficult state budget resources, and in implementing the Party's policy on mobilizing resources for investment in transportation infrastructure through public-private partnerships, the investment in the Bac Giang - Lang Son expressway project using investor capital, completed and put into operation, met the schedule, quality, and investment objectives. This contributed to reducing traffic volume, congestion, and traffic accidents on National Highway 1, shortening travel time, creating momentum for socio-economic development, enhancing the competitiveness of the economy, and improving the quality of life for people in the localities through which the road passes.

In its conclusion, the Government Inspectorate affirmed that the Bac Giang – Lang Son BOT project, once put into operation, along with the Hanoi – Bac Giang expressway (completed in 2016) and the Huu Nghi – Chi Lang expressway (commenced in April 2024, expected to be completed in 2026), will form a complete expressway axis connecting Hanoi with the Huu Nghi international border gate. The formation of this interconnected expressway axis will contribute to increasing transport capacity, promoting international trade, and simultaneously boosting socio-economic development in the Northeast region and enhancing national competitiveness.

According to the Government Inspectorate, the project failed to achieve its initial objectives, was inefficient, and at the time of the inspection, revenue did not meet the financial plan outlined in the BOT contract and its appendices. As a result, DNDA's toll revenue was insufficient to cover interest and principal payments on bank loans.

Besides the impact of the COVID-19 pandemic causing a decrease in traffic volume, the Government Inspectorate pointed out that the traffic forecast was inaccurate, and the actual traffic volume was much lower than the initial forecast, leading to a revenue deficit and rendering the approved financial plan of the project unsustainable.

In particular, the decision not to collect tolls at the Km24+900 toll station on National Highway 1 due to objective circumstances at the time of implementation, as well as the exemption of tolls for vehicles around the Km93+160 toll station on National Highway 1, has affected the project's financial plan.

Associate Professor Tran Chung, Chairman of the Vietnam Association of Road Transport Infrastructure Investors (VARSI), believes that the slow processing of procedures for increasing state capital according to the policy approved by competent authorities, or the slow resolution of existing obstacles in many current BOT transport projects, is significantly affecting the progress of PPP projects and the morale of investors.
“Laws need to be constructive and developmental, but frankly, in the past, the PPP Law has not ensured fairness for participating entities. The law also does not specify who will act as an arbitrator to resolve conflicts between participating entities during the implementation of PPP projects. The slow handling of obstacles in projects makes it more difficult for investors to complete their dossiers when policies change. This is a huge waste of time, dampens aspirations, and causes investors to lose opportunities to contribute to the country's development,” Mr. Chung emphasized.

Source: https://congthuong.vn/go-vuong-cho-du-an-bot-cao-toc-bac-giang-lang-son-429880.html