The State holds 100% of charter capital at the Vietnamese highway giant.

The State holds 100% of the charter capital at the "giant" of Vietnam's highways.

Vietnam Expressway Corporation will maintain its organizational model as an enterprise in which the State holds 100% of the charter capital and operates under the parent company - subsidiary group model.

A section of Cau Gie – Ninh Binh expressway invested and operated by VEC.

The Chairman of the State Capital Management Committee at Enterprises has just signed a decision approving the Project to Restructure Vietnam Expressway Corporation (VEC) for the period up to 2025.

Accordingly, VEC will continue to operate in the business lines approved by competent authorities, including the main business lines of investing in the construction of other transport infrastructure works in all forms; investing in the construction, management, maintenance and organization of toll collection on national highways; exploiting and providing services along highways, etc.

VEC continues to maintain its organizational model as an enterprise in which the State holds 100% of the charter capital and operates according to the model of a parent company - subsidiary group. The State Capital Management Committee at enterprises is the agency representing the owner; the enterprise is ranked as a special-class corporation.

Regarding the plan to reorganize the parent company and its subsidiaries and affiliated companies, the Project clearly states that VEC will reorganize the Information Technology Department into the Information Technology Center (a dependent accounting unit); reorganize and convert the Da Nang - Quang Ngai Expressway Operation Center into the Central Expressway Operation Company under the model of a one-member limited liability company; carry out procedures to dissolve the My Thuan - Can Tho Expressway Investment Joint Stock Company, etc.

In the period from now to 2025, VEC will complete procedures related to additional investment in charter capital; restructure loans, ensure the ability to repay loans to financial institutions, propose financial mechanisms to ensure sufficient resources to continue investing in future projects.

In addition, VEC transfers assets formed from State investment capital in the project into State investment capital in the enterprise at the same time as the process of additional investment in charter capital.

It is known that the State Capital Management Committee at Enterprises has proposed the Government to consider and approve the report to the National Assembly to decide on the investment policy to supplement the charter capital for the parent company - VEC in the period of 2024 - 2026, which is 38,251 billion VND, including 1,562 billion VND from the Development Investment Fund at the enterprise, 36,689 billion VND from the state budget disbursed for investment in the construction of 5 expressway projects invested by VEC (10,062 billion VND of counterpart capital from the state budget, 24,127 billion VND of ODA capital in projects implemented in the form of converting loan capital for re-lending into state budget allocation, 2,500 billion VND of state budget allocation capital for the Noi Bai - Lao Cai and Cau Gie - Ninh Binh projects).

VEC was established in October 2004 with the main business lines of investing in construction, management, maintenance and toll collection of national expressways.

Carrying out the tasks assigned by the Government, VEC has been the investor of 5 expressway projects (550km with a total investment of 108,865 billion VND; state budget capital accounts for 44.4%, VEC mobilized capital accounts for 55.6%).

As of November 2024, VEC has completed and put into operation 4/5 projects (490km, accounting for about 27% of the total length of expressways in Vietnam).

The expressways invested and put into operation by VEC have contributed to reducing costs and completing synchronous logistics infrastructure, developing the socio-economy, and enhancing national competitiveness...

According to the Development Strategy to 2030, vision to 2035; Production and business plan and development investment to 2025 approved by the State Capital Management Committee at enterprises, VEC will balance from equity capital to replace public investment capital to implement the Ben Luc - Long Thanh Expressway Project (VND 7,547.57 billion), invest in expanding the Ho Chi Minh City - Long Thanh section of the Ho Chi Minh City - Long Thanh - Dau Giay Expressway Project (total investment of about VND 15,000 billion); invest in expanding the Yen Bai - Lao Cai section of the Noi Bai - Lao Cai Expressway Project (total investment of about VND 7,000 billion).

Source: https://baodautu.vn/nha-nuoc-nam-100-von-dieu-le-tai-ong-lon-duong-cao-toc-viet-nam-d230653.html