The Government has just submitted a proposal to add VND38,251 billion in charter capital to the parent company - Vietnam Expressway Corporation (VEC).
Minister of Finance Nguyen Van Thang - Photo: National Assembly
On the afternoon of February 17, on behalf of the Prime Minister, Minister of Finance Nguyen Van Thang presented a proposal to add VND38,251 billion in charter capital to the parent company - Vietnam Expressway Corporation (VEC) from two sources.
Two additional sources of capital
Accordingly, the additional amounts include about VND 1,562 billion from the enterprise development investment fund recorded in the investment project to form assets serving production and business.
Along with that, nearly 36,690 billion VND from the state budget has been disbursed to invest in 5 expressway projects invested by VEC.
This amount will include VND10,062 billion in counterpart funds from the budget; VND24,127 billion in ODA capital for projects implemented in the form of transferring loan capital for re-lending into budget allocation and VND2,500 billion in budget allocation for the Noi Bai - Lao Cai and Cau Gie - Ninh Binh projects.
Minister Nguyen Van Thang said that the increase in charter capital from disbursed public investment sources ensures the principle of capital preservation.
Accordingly, the amount of budget spent will be transferred to the enterprise's charter capital and VEC is responsible for preserving the allocated capital.
However, the minister said that the current Law on Public Investment and current regulations do not have provisions on allocating capital for projects and converting it into budget capital to supplement charter capital for state-owned enterprises.
Not to mention, the charter capital expected to be invested additionally in VEC is 38,251 billion VND, so the decision on the policy is under the authority of the National Assembly, serving as the basis for the Prime Minister to decide on investment.
In addition, the increase in charter capital for the parent company - VEC from public investment sources, has disbursed investment in the construction of 5 expressway projects invested by VEC, so according to Mr. Thang, it does not create budget expenditures and public debt, and does not directly impact the state budget.
Additional capital is also necessary because according to the development strategy to 2030, vision 2035, VEC needs to mobilize a large amount of capital to invest in new expressways and expand projects under management.
Of which, the period up to 2025 needs about 14,890 billion VND, and the period up to 2030 needs 30,500 billion VND. Therefore, after the charter capital is supplemented, VEC will be eligible to mobilize capital from credit institutions to carry out investment projects.
Auditing capital increase for VEC
Mr. Le Quang Manh, member of the National Assembly Standing Committee - Photo: National Assembly
Examining this content, Mr. Le Quang Manh, member of the National Assembly Standing Committee, said that the majority of opinions of the Finance and Budget Committee agreed that it is necessary to increase the charter capital for VEC in the 2024-2026 period to increase financial capacity and develop expressway projects.
Accordingly, the competent authority has concluded and agreed in principle to allow the use of public investment capital allocated to the Ministry of Transport to invest in the project.
This amount includes counterpart capital from the state budget, ODA in projects implemented in the form of converting loan capital for re-lending into budget allocation and budget allocation capital for projects to be converted into additional budget capital for VEC.
However, the auditing agency requested the Government to direct agencies to calculate, accurately determine and take responsibility for the data when implementing this policy.
This is to ensure effective use of capital, no loss of capital and State assets, as well as to handle issues related to management, accounting, capital preservation and development plans when supplementing charter capital for VEC.
The State Audit, within the scope of its duties and powers, shall audit compliance with regulations on charter capital increase as well as capital management and use of the parent company - VEC in accordance with the provisions of the State Audit Law, and report to the National Assembly at the session scheduled for October 2025.
According to the Government, VEC is assigned to invest, develop, manage and maintain the national expressway system, and is the investor of 5 expressway projects with a total length of 540km, with a total investment of 108,865 billion VND.
To date, VEC has completed investment and put into operation 4/5 projects with a total length of 490km, accounting for about 27% of the total length of expressways in Vietnam.
With a charter capital of VND 1,115.13 billion, while the total investment in VEC's highway projects is very large, VEC always faces difficulties in not ensuring the debt/equity ratio according to current law.
Source: https://tuoitre.vn/de-xuat-them-38-251-ti-dong-von-dieu-le-cho-tong-cong-ty-dau-tu-duong-cao-toc-20250217145217597.htm
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