Examining the development strategy of the "giant" of Vietnam's highways until 2030
In the period up to 2030, Vietnam Expressway Corporation - VEC is assigned to achieve an average revenue growth rate of 9%/year and an average profit growth rate of 27%/year.
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| A section of the Ho Chi Minh City – Long Thanh – Dau Giay expressway operated and exploited by VEC. |
Mr. Nguyen Hoang Anh, Chairman of the State Capital Management Committee at Enterprises, has just signed Decision No. 286/QD-UBQLV approving the development strategy until 2030, vision to 2035; Production, business and investment development plan until the end of 2025 of VEC.
Core role in highway development
The most prominent highlight in this decision is that the State Capital Management Committee at Enterprises assigned VEC to play a core role in the mission of developing the national expressway system according to the plan, focusing on the field of investment, development, exploitation and operation of expressways and business of value-added services along the routes.
VEC will also have to focus on promoting all strengths and resources to participate in investing in the development of the national expressway system; promote research and propose appropriate investment forms, in which state capital plays a supporting and leading role to attract maximum resources from other economic sectors.
In the development strategy to 2030, with a vision to 2035, VEC continues to operate under the parent company - subsidiary model; the main business lines are investment in construction, management, operation, exploitation and maintenance of expressways; assigned to manage expressway infrastructure assets, calculating the state capital component in the enterprise and increasing charter capital according to the roadmap based on the state capital invested in projects invested by VEC.
In the period up to 2025, VEC is assigned to complete the Ben Luc - Long Thanh expressway to put into operation to ensure quality; complete the remaining items of the Da Nang - Quang Ngai route; study and prepare for investment in expanding the expressways assigned to VEC to manage and operate in order to improve the efficiency of operation and implementation after completing the increase in charter capital for VEC, including: Ho Chi Minh City - Long Thanh - Dau Giay expressway project, Ho Chi Minh City - Long Thanh section; synchronous investment to complete service areas and rest stops on the Da Nang - Quang Ngai, Ho Chi Minh City - Long Thanh - Dau Giay, Ben Luc - Long Thanh routes.
In the period up to 2030, VEC will invest in expanding the Cau Gie - Ninh Binh section, Dai Xuyen - Liem Tuyen section; Noi Bai - Lao Cai section, Yen Bai - Lao Cai section; Ho Chi Minh City - Long Thanh - Dau Giay section, Ho Chi Minh City - Long Thanh section on the basis of increasing charter capital and transferring assets, provinces and state capital in enterprises; studying participation in the investment phase to complete on a complete scale to improve the efficiency of some routes such as Quang Ngai - Hoai Nhon and Phan Thiet - Dau Giay on the North - South expressway axis.
The Chairman of the State Capital Management Committee at Enterprises assigned VEC to study and participate in investing in the remaining expressways in the planning, such as Bao Ha - Lai Chau and Quang Nam - Quang Ngai (expressways connecting with expressways that VEC is assigned to manage and operate); study and participate in routes that are not highly financially effective but serve the goals of national security and defense, socio-economic development, hunger eradication and poverty reduction, and are difficult to attract other economic sectors to participate with appropriate mechanisms to promote the role of state-owned enterprises in which the State holds 100% of the charter capital.
During this period, VEC achieved an average revenue growth rate of 9%/year and an average profit growth rate of 27%/year.
In the field of highway exploitation, by 2025, VEC will manage and exploit 800km of highways, striving to manage and exploit 1,500km of highways by 2035; establish North - Central - South operation management centers to proactively manage operation activities, provide toll collection data reconciliation services, and monitor operation activities for highway projects inside and outside VEC; effectively manage and use highway assets through organizing maintenance, repair, and effective maintenance of highway infrastructure invested by VEC.
Mobilizing resources to upgrade 3 expressways
Established in October 2004, VEC is a state-owned enterprise that invests, manages, maintains and collects tolls to recover capital for the national expressway system. With the operation and exploitation of 485 km, belonging to 4/5 expressway projects, accounting for 42% of the total length of national expressways, VEC has been creating changes in transport infrastructure, contributing significantly to the socio-economic development of the country and localities where expressways run through. 
Also in Decision No. 286, the State Capital Management Committee at Enterprises also approved VEC's Production, Business and Investment Development Plan until the end of 2025.
Accordingly, by the end of 2025, VEC will achieve total revenue of VND 32,420 billion; profit after tax of VND 4,161 billion; and pay the state budget deductible VAT of VND 3,375 billion.
In the next 2 years, VEC will have to accelerate the implementation of the Ben Luc - Long Thanh Expressway Project to complete and put into use with quality assurance and progress in 2025; complete project adjustment procedures to deploy and complete the remaining items of the Da Nang - Quang Ngai route in 2025; complete the final settlement of the Cau Gie - Ninh Binh, Noi Bai - Lao Cai and Ho Chi Minh City - Long Thanh - Dau Giay Expressway Projects; deploy the investment in expanding the Ho Chi Minh City - Long Thanh - Dau Giay route, the Ho Chi Minh City - Long Thanh section (VEC arranges and mobilizes investment capital for the project). The total investment of the above projects is 79,060 billion VND; the capital demand is 14,890 billion VND.
VEC expressways are regularly maintained and repaired, periodically repaired, and unexpected damage is fixed to ensure operational quality; ETC system operations on routes are strictly controlled, system errors are promptly fixed, ensuring smooth, transparent, and effective operation. Maintain and promote traffic growth and revenue growth higher than 5 years ago.
In particular, VEC is studying to participate in bidding for exploitation and operation of North-South expressway sections invested by public investment capital; and promoting the implementation of settlement of exploitation and operation work in previous years.
The leaders of the State Capital Management Committee at Enterprises assigned VEC, based on the restructuring plan of the Corporation approved by competent authorities, to submit to competent authorities for consideration and approval of the increase in charter capital; at the same time, focus resources and promote working with competent authorities to approve the investment plan to expand the expressways currently in operation of VEC.
The Chairman of the State Capital Management Committee at Enterprises assigned the Board of Directors of VEC to be responsible for organizing the implementation of the Development Strategy to 2030, vision to 2035, the Production, Business and Investment Development Plan to the end of 2025 in accordance with regulations; proactively develop specific action plans, programs and roadmaps to ensure practical, effective implementation, preservation and development of state capital invested in enterprises.
The Board of Directors of VEC must seriously supervise, inspect and examine the implementation of the law, the implementation of goals, strategies, plans and assigned tasks; evaluate the performance of subsidiaries, managers and representatives according to regulations. Periodically report to the State Capital Management Committee at enterprises on the implementation of the Strategy and Plan according to regulations.
“During the implementation process, if difficulties or problems arise beyond the authority, report to the Committee and relevant agencies for timely resolution; be responsible to the Committee and inspection and examination agencies for proposed contents and reported data,” the Chairman of the State Capital Management Committee at Enterprises assigned the task.
Previously, the Chairman of the State Capital Management Committee at Enterprises signed Decision No. 59/QD-UBQLV approving the 2024 production, business and investment development plan of the parent company - VEC.
The State Capital Management Committee at Enterprises assigned the parent company - VEC to achieve total revenue of VND 5,873.1 billion, total expenses of VND 5,076.6 billion; pre-tax profit of VND 796.5 billion, after-tax profit of VND 638 billion; taxes and other payables to the State of VND 577.5 billion.
The representative of the State capital portion at the parent company - VEC is responsible for coordinating with relevant agencies to complete the following procedures after the competent authority approves the Project: Policy on the restructuring plan of the Corporation; completing the process and procedures for submitting to the competent authority for approval of additional charter capital according to the financial restructuring plan approved by the National Assembly in Resolution No. 63/2022/QH15 dated June 16, 2022 on converting loans for re-lending, Government guarantees into state budget allocation for 4 VEC Projects; strictly implementing the conclusions of the inspection and examination agencies.
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