On the afternoon of February 10, the National Assembly Standing Committee gave its opinion on the plan to invest in additional charter capital for the 2024-2026 period of the parent company - Vietnam Expressway Corporation (VEC).
Reporting at the meeting, Minister of Finance Nguyen Van Thang said that currently, the charter capital of the parent company - VEC is very low (VND 1,115 billion) compared to the investment scale (about VND 108,865 billion), so VEC is facing difficulties in mobilizing capital sources to invest in expressway projects, ensuring the completion of the 5-year production and business plan and development investment for the period 2021-2025, Development Strategy to 2030, vision to 2035 (investment capital demand for the period 2021-2025 is VND 14,890 billion, the period 2026-2030 is VND 17,053 billion), especially for capital sources with low capital costs such as commercial loans and construction bond issuance.
On the other hand, recognizing the capital contribution of the State owner through the value of assets formed from investment activities, enhancing the effectiveness of State investment capital, creating conditions for VEC to develop sustainably; strengthening financial capacity, ensuring the implementation of commitments to customers and financial partners, improving access to credit, ensuring the basis for depreciation and accounting for assets such as expressways, promoting the core leading role in investment/management and operation of expressways.
“Therefore, the investment in additional charter capital for the parent company - VEC is necessary and urgent, in accordance with the policies/tasks assigned by the Central Party, the National Assembly, and the Government, ensuring the completion of the 5-year production, business and investment development plan for the period 2021-2025, the Development Strategy to 2030, with a vision to 2035,” Mr. Nguyen Van Thang emphasized.
According to the Minister of Finance, in its role as the State representative as the investor of expressway projects, VEC has initially completed its goal of serving the national expressway network development strategy by mobilizing about VND 108,865 billion from domestic and foreign capital sources to invest in 5 expressway routes with a length of 540 km.
The expressways invested and put into operation by VEC have played a role in the socio-economic development of the country as stated in the purpose of establishing VEC. On the other hand, with the role of managing, operating and exploiting expressways assigned by the State, VEC has put into operation 490 km of 4/5 expressway projects, accounting for about 27% of the total length of expressways in Vietnam today...
Therefore, increasing charter capital is the basis and motivation to help VEC have the ability to access capital sources and conditions to invest in expansion projects and new projects, contributing to the driving force to promote development for localities where the project passes through, at the same time helping VEC develop in depth, bringing products with the best service quality to customers as well as contributing to the overall development of the locality.
From the practical model of VEC's organization and operation, it can be seen that the additional investment in charter capital helps VEC promote the model of a state-owned enterprise investing in development, management, operation and exploitation of expressways, demonstrating its core and leading role in the development of the national expressway network.
Regarding the determination of capital level and source of additional investment in charter capital, Minister Nguyen Van Thang said that the re-determined charter capital level for the parent company - VEC for the 3-year period (2024-2026) is: 39,366 billion VND. Of which, 38,251 billion VND is added from other sources, 1,562 billion VND from the Development Investment Fund at the enterprise is recorded in the investment project to form assets to serve the production and business activities of the enterprise.
Examining the above issue, Mr. Le Quang Manh, Chairman of the National Assembly's Finance and Budget Committee, said that the majority of opinions in the Standing Committee of the Finance and Budget Committee agreed with the necessity of investing additional charter capital for the parent company - VEC for the reasons stated in the Government's Submission No. 50/TTr-CP.
According to Mr. Le Quang Manh, regarding the level of additional investment capital for charter capital, the majority of opinions of the Standing Committee of the Committee agreed with the Government's proposal to use the amount of VND 1,562 billion from the Enterprise Development Investment Fund to increase the charter capital for the parent company - VEC. Particularly for the capital source of VND 36,689 billion from the state budget that has been disbursed to invest in the construction of 5 expressway projects invested by VEC: the Government is requested to report to the competent authority for consideration and approval before reporting to the National Assembly for consideration and decision on the policy of increasing the charter capital for the parent company - VEC.
The Standing Committee of the Finance and Budget Committee also recommended that the National Assembly Standing Committee request the Government to report to the competent authority the plan for additional investment in charter capital for the 2024-2026 period (VND 38,251 billion) for the parent company - VEC, including the use of VND 36,689 billion from the state budget that has been disbursed for investment in the construction of 5 expressway projects to increase charter capital for the parent company - VEC. Based on the consent of the competent authority, the Government urgently completes the additional documents to submit to the National Assembly for consideration and decision on the policy of increasing charter capital for the parent company - VEC at the 9th Extraordinary Session.
Source: https://daidoanket.vn/chinh-phu-de-xuat-bo-sung-von-dieu-le-cho-vec-10299658.html
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