High expectations for a highway connecting to the sea.

CONNECTING THE SEA AND THE FOREST

In June 2022, the 3rd session of the 15th National Assembly passed a resolution on the investment policy for the first phase of the Khanh Hoa - Buon Ma Thuot expressway project. According to this resolution, the project aims to create a horizontal axis connecting the Central Highlands with the South Central coastal region; connect with vertical axes, maximizing the effectiveness of projects already invested in and under investment; connect economic centers and seaports, meeting transportation needs; and create space and momentum for the development of the Central Highlands and the South Central coastal region…

The Khanh Hoa - Buon Ma Thuot expressway project has a total length of approximately 117.5 km. The project starts at Nam Van Phong port (Khanh Hoa province) and ends at the Ho Chi Minh bypass road east of Buon Ma Thuot city (Dak Lak province). The Ministry of Transport plans to invest nearly 22,000 billion VND in phases; divided into three component projects: 1 (32 km), 2 (37.5 km), and 3 (48.5 km), respectively managed by the People's Committee of Khanh Hoa province, the Ministry of Transport, and the People's Committee of Dak Lak province.

A view of the Van Phong Economic Zone, Khanh Hoa.

Mr. Le Cong Du, Deputy Director of the Dak Lak Department of Transport, believes that the construction of the Khanh Hoa - Buon Ma Thuot expressway is a very correct policy of the State, creating a new face for Dak Lak as well as the Central Highlands provinces, where transportation infrastructure is still limited and weak. "The road will make a significant contribution to upgrading infrastructure, promoting socio-economic development of the mountainous province of Dak Lak and creating a ripple effect for the Central Highlands and South Central regions," Mr. Du observed.

COFFEE EXPORT FACTORY WILL BE NEAR SEAPORT

Known as the "coffee capital" of the country, Dak Lak boasts over 210,000 hectares of coffee plantations, with an annual production of nearly 510,000 tons and exports exceeding 200,000 tons. For a long time, this large volume of exported coffee has been transported by road, a distance of nearly 400 km from Dak Lak to ports in Ho Chi Minh City for distribution to international markets. However, not only coffee but also many other agricultural products exported by businesses and localities have experienced significant congestion at Ho Chi Minh City ports at times. Therefore, the Khanh Hoa - Buon Ma Thuot expressway project will help reduce Dak Lak's reliance on the route to Ho Chi Minh City for coffee transportation, providing export businesses with a cost-effective logistics advantage. Mr. Le Duc Huy, General Director of Dak Lak 2.9 Import-Export Company Limited, believes that when this expressway is completed, along with the upgrading of Van Phong seaport (Khanh Hoa) to an international port, the distance for transporting coffee from Dak Lak to export ports will be just over 100 km. "Not only will it benefit freight transportation costs, but this expressway will also contribute to improving transportation infrastructure and attracting more investors to Dak Lak and the Central Highlands," Mr. Huy assessed.

The Phuong Hoang Pass on National Highway 26 restricts transportation and trade compared to the expressway.

As a key point on the expressway, Buon Ma Thuot City will receive additional growth impetus from this important route. Mr. Vu Van Hung, Chairman of the Buon Ma Thuot City People's Committee, believes that once the expressway is completed and put into use, it will create new development directions for residential areas, urban centers, and industrial zones and clusters, taking advantage of the upgraded transportation infrastructure. "This expressway will play a supporting role in developing Buon Ma Thuot City into a central urban area of ​​the Central Highlands region, in accordance with the central government's policy; attracting more investment in economic sectors and creating positive development momentum for the city," Mr. Hung said.

Mr. Nguyen Duc Son, director of a real estate company in Dak Lak, believes that the Khanh Hoa - Buon Ma Thuot expressway project brings expectations to investors in exploiting the potential and advantages of the area. According to Mr. Son, recently, the real estate market along the planned expressway route has shown many signs of fluctuation, land prices are no longer "stagnant," and many investors see this area as having many new and attractive opportunities…

Residents of the mountainous region also expressed excitement about the news of the Khánh Hòa - Buôn Ma Thuột expressway construction. Ms. Lê Thảo Phương, a resident of Buôn Ma Thuột, said that after researching, this expressway is the shortest route connecting the highlands to the tourist coastal region of Khánh Hòa. "Previously, traveling by car from Buôn Ma Thuột to Nha Trang via National Highway 26 took about 4 hours, but thanks to the expressway, the travel time will be reduced by almost half, making it more convenient for both residents and tourists, and boosting tourism growth in both Đắk Lắk and Khánh Hòa. I hope this road will be started and completed soon," Ms. Phương said.

Construction on the project must begin before June 30, 2023.

In mid-May, the Ministry of Transport issued a directive requiring project management boards to quickly complete the approval of technical designs for the bidding packages, ensuring the basis for preparing cost estimates, bidding documents, and selecting construction contractors, in order to meet the commencement deadline for the Khanh Hoa - Buon Ma Thuot expressway project before June 30, 2023, as stipulated in Government Resolution 89 dated July 25, 2022. The Ministry of Transport also requested the People's Committees of the provinces to direct the implementation of land clearance for the component projects, ensuring the handover of at least 70% of the land area for the project's commencement.

Contributing to an average growth rate of 1.5%.

In a related report, the People's Committee of Dak Lak province assessed that the Khanh Hoa - Buon Ma Thuot expressway will be a strategic route, playing an important role in awakening and exploiting the development potential of Dak Lak as well as the Central Highlands region. When put into operation, the project will impact the economic development of localities and the region by approximately 0.9% - 2.1%, averaging 1.5%. The construction of the expressway will further connect the economy in general and tourism in particular between the Central Highlands and the South Central coastal region.

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