From a starting point of almost zero, VEC's Board of Directors has researched strategic directions, gradually removed difficulties in human resources and material resources, and built a position in the field of highway construction investment.

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Mr. Tran Xuan Sanh - Former Chairman of the Board of Members and General Director of VEC. Photo: NVCC

"Running and queuing at the same time", racing to meet project investment progress

Since its inception, VEC has shouldered the heavy task and great expectation of being a core enterprise in the investment of the national expressway system. VEC's business operation method is: Investment - Exploitation - Capital Recovery and Ownership.

Although the model is similar to the Korea and Japan Expressway Corporations, KEC and NEXCO, the initial investment for VEC is not the same as Korea and Japan. While the charter capital assigned by the Government of your country is 5 billion USD, VEC is only assigned charter capital through the right to collect tolls on National Highway 1 at Cau Gie and Phu Dong stations for a period of 10 years.

In the early days of establishment, facing numerous difficulties, starting from nothing, VEC "went and explored the path", step by step solving the problems of human resources, material resources and mechanisms to have a foundation for development.

Regarding human resources: As a newly established unit, VEC does not have any personnel while the assigned tasks require thousands of workers. We - some initial key staff (Chairman of the Board of Members, General Director, Chief Accountant) coordinated with the Department of Organization and Personnel ( Ministry of Transport ) to review human resources in the industry, propose to the Minister to mobilize, arrange, and form the basic apparatus of VEC.

From the initial workforce, the work of propaganda, promotion, and recruitment of labor force continues to be promoted to have enough staff and production lines. In parallel with the building of the force, the Board of Directors simultaneously starts the work of preparing investment projects. During this period, the work is both running and lining up.

Regarding material resources: VEC's initial charter capital is not in cash but in assets, through the right to collect highway tolls worth about 1,000 billion VND, collected within 10 years.

To get a large amount of cash at once, the only way is to franchise. From there, VEC must apply for a franchise mechanism and solve the capital source after 3 years.

During the period when the toll collection rights have not been sold, all operating costs depend on bank loans with high interest rates, partly supported by businesses in the industry through the direction of the Ministry of Transport.

Regarding the operating mechanism: The business model is new, so the Investment Law of 1996 is not yet sufficient for implementation. The biggest problem is the imbalance between the charter capital and total investment, VEC's nominal capital is 1,000 billion but VEC has to mobilize 100,000 billion VND.

To resolve the above “bottleneck”, VEC has reported to the Government and Ministries and branches. That is also the reason why Decision 1202 on special mechanisms applied to projects invested by VEC was issued.

5 core issues to create breakthroughs and overcome difficulties

The challenge is huge, but after only 5 years, VEC has affirmed its expected role and position when it was established, which is to become a core enterprise in investing in expressway projects using commercial loans.

To meet investment resources, VEC had to issue project bonds with an interest rate of 16%/year. However, VEC's business activities have brought about very high socio -economic efficiency.

At that time, VEC had mobilized capital of 5 billion USD, at the same time promoted investment in 5 major expressway projects, with a length of more than 530km and researched and prepared 3 more projects in the pre-feasibility stage.

Up to now, after 20 years of construction and development, VEC has maintained its leading position in the group of expressway investors in terms of investment volume and value. Many expressways invested and operated by VEC have been actively contributing to the economic development of the country in general and the localities along the expressway in particular.

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Launching ceremony of Vietnam Expressway Development Investment Company on December 4, 2004. Photo: NVCC

To overcome difficult times and achieve remarkable achievements, we cannot fail to mention 5 core issues:

Firstly, VEC has gathered a team of human resources with high professional qualifications and ethics, proficient in work content, especially internationally related work.

Second, thanks to the solidarity and unity of the entire organizational system, from leaders to officers, employees, and workers, all working towards the goal of building a strong and sustainable company.

Third, personnel work is built on the basis of a public, democratic, and transparent process, selecting the right person for the right job and position.

Fourth, work management is clear and coherent, the operation chain runs smoothly, without pushing or backlog of work.

Fifth, build a spirit of dedicated work for cadres, employees and workers, regardless of day or night. That spirit is not only promoted within VEC but also inspires cadres of ministries, branches and international friends.

Celebrating the 20th anniversary of the founding (October 6, 2004 - October 6, 2024), with the sentiments of a member who was a key leader, a founding member, and the person who directly created the VEC brand logo and is used to this day, I wish all officers, employees, and workers of the corporation to continue to unite, be unanimous, and continue to promote the good traditions of previous generations, bringing the corporation to develop more and more firmly and continuously grow.

Tran Xuan Sanh - Former Chairman of the Board of Directors and General Director of VEC