Speeding up the progress of the 72.03 billion USD metro project; Investing 19,784 billion VND to build the Nam Dinh - Thai Binh expressway
Accelerating the progress of the Metro Development Project in Hanoi and Ho Chi Minh City worth 72.03 billion USD; Investing 19,784 billion VND to build 60.9 km of 4-lane Nam Dinh - Thai Binh expressway...
Those were two of the notable investment news stories of the past week.
Accelerating the progress of the Metro Development Project in Hanoi and Ho Chi Minh City worth 72.03 billion USD
The People's Committees of Hanoi and Ho Chi Minh City are requested to focus resources on reviewing procedures and completing the dossier of the Project on developing the urban railway network system until 2035 before November 8, 2024.
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| A section of the Ben Thanh - Suoi Tien urban railway line is about to be put into operation by the Ho Chi Minh City People's Committee. |
The Ministry of Transport (MOT) has just sent an official dispatch to the People's Committees of Hanoi and Ho Chi Minh City regarding the Project to develop the urban railway network system of Hanoi and Ho Chi Minh City by 2035.
Specifically, the Ministry of Transport requested the two cities to focus resources, review procedures, complete the Project dossier and send it to the Ministry of Transport before November 8, 2024 to implement the next procedures; at the same time, arrange personnel, provide complete documents, proactively coordinate with the Ministry of Transport to complete the Project, Submission, and Draft Conclusion of the Politburo.
Under the direction of Deputy Prime Minister Tran Hong Ha, the Ministry of Transport is responsible for compiling a Project dossier to submit to the Government Standing Committee before October 10, 2024.
However, up to now, the Ministry of Transport has only received the Project report from the Ho Chi Minh City People's Committee, but has not yet received the Project report from the Ho Chi Minh City People's Committee, so the synthesis of the Project documents has been slower than the Deputy Prime Minister's direction.
To ensure consistency in the content of the Project, the Ministry of Transport recommends that the two cities promptly review and determine the investment rate for urban railways (elevated and underground); the basis for selecting technology; the ability to master technology, operate and exploit (determine the agency in charge of receiving technology, equipment, locomotives, and carriages); human resource training needs and plans; resource mobilization plans; management and exploitation models; implementation mechanisms and policies, etc.
In addition, on October 17, 2024, the Ministry of Finance held a meeting with the Ministry of Transport, the Ministry of Planning and Investment, the People's Committee of Hanoi and the People's Committee of Ho Chi Minh City to calculate and assess the impact of public debt when synchronously implementing key national railway investment projects.
“The Hanoi People's Committee and Ho Chi Minh City People's Committee are requested to closely coordinate with the Ministry of Finance to soon have a report assessing the overall impact of public debt when implementing investment projects,” the Ministry of Transport's official dispatch stated.
In the report on the Urban Railway Network Project of Hanoi and Ho Chi Minh City by 2035, compiled by the Ministry of Transport and sent to the Government leaders in mid-September 2024, the goals of covering the urban railway network of the two above-mentioned localities have been relatively clearly defined.
Accordingly, Hanoi City aims to complete about 598.5 km of urban railway, of which by 2030, it strives to put into operation about 96.8 km; by 2035, it strives to put into operation about , taking on 50-55% of the public passenger transport market share; by 2045, it strives to put into operation about 200.7 km, taking on 65-70% of the public passenger transport market share and completing urban railway routes according to the Capital planning and the adjusted Capital Construction Master Plan.
Meanwhile, the Ho Chi Minh City People's Committee aims to complete about 510.02 km of urban railways, of which by 2035, it strives to put into operation about 183 km, taking on 30-40% of the public passenger transport market share; by 2045, it strives to put into operation about 168.36 km, taking on 40-50% of the public passenger transport market share; by 2060, it strives to put into operation about 158.66 km, taking on 50-60% of the public passenger transport market share and complete the urban railways according to the Ho Chi Minh City Master Plan and the adjusted Ho Chi Minh City Master Plan.
The urban railway projects in Hanoi and Ho Chi Minh City, when completed, will not only change the traffic landscape of the two largest cities but also contribute to reducing traffic congestion and accidents.
To ensure consistency in investment and operation, the Ministry of Transport proposed some main general technical parameters for the urban railway system in the two cities: 1,435 mm gauge, double track; design speed of 80-160 km/h; overhead power supply system or third rail power supply; automatic train operation; vehicles using EMU distributed power trains.
Regarding the implementation roadmap, the Ministry of Transport plans to complete the urban railway lines according to the current planning by 2035, with a total length of about 580.8 km; by 2045, complete about 369.1 km (Hanoi City about 200.7 km; Ho Chi Minh City about 168.4 km); by 2060, complete about 158.66 km in Ho Chi Minh City/
The capital investment needs for developing the urban railway network in the two cities are as follows: by 2035, about 72.03 billion USD is needed; by 2045, about 44.43 billion USD is needed; by 2060, about 40.61 billion USD is needed. Of which, by 2030, the central budget is proposed to support about 11.82 billion USD and by 2035, the central budget will support about 6.29 billion USD.
Postponing the submission of the proposal for the Vietnam-Laos Railway PPP Project worth VND 27,485 billion
The investor consortium proposed to postpone the submission of appraisal and approval documents for the Pre-Feasibility Study Report of the Vung Ang - Tan Ap - Mu Gia Railway Project under the PPP method.
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| Illustration photo. |
The consortium of Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company has just requested the Ministry of Transport to approve the adjustment of the time for submitting the appraisal and approval documents of the Pre-Feasibility Study Report of the Vung Ang - Tan Ap - Mu Gia Railway PPP Project.
Accordingly, the Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company Joint Stock Company will submit the initial report on November 26, 2024; submit the final report 1 month later and complete the pre-feasibility study report on the basis of the expected State budget capital allocation (if any) by mid-January 2025.
In October 2023, the Ministry of Transport approved the consortium of Lao Petroleum Trading Company - Deo Ca Group Joint Stock Company as the investor to propose the project to prepare a pre-feasibility study report for this railway project under the PPP method.
The consortium must submit the project proposal to the headquarters of the Railway Project Management Board (Ministry of Transport) before October 10, 2024. In case the proposed investor fails to submit the proposal within the above deadline, it is understood that the proposed investor is no longer interested in studying the project.
It is known that the consulting unit has basically completed the site survey and is urgently completing the documents according to regulations.
However, in recent times, Lao Petroleum Trading Company has been facing difficulties due to the impact of the macro economy and the restructuring of the parent company, so there has not been good coordination for the Investor Consortium to propose the project to complete its tasks.
In addition, the forecasting of transportation demand (goods/passengers) for the project depends on the forecast results of the Vientiane – Thakhek – Mu Gia Railway Project, which currently has no specific results.
For technical technology content, the investor consortium needs a lot of time to select and evaluate as well as refer to different railway engineering technologies from China, Europe, Japan, etc.
In addition, more time is needed to thoroughly study station locations, domestic and international connections to suit relevant planning, as well as study appropriate investment options to ensure harmonious interests among parties involved in the Project implementation.
The Vung Ang – Tan Ap – Mu Gia railway project belongs to the Vientiane – Vung Ang railway line, is part of the railway network planning for the period 2021 – 2030, with a vision to 2050, approved under Decision No. 1769/QD-TTg dated October 19, 2021 of the Prime Minister, with an investment roadmap before 2030.
This is an important project, part of the overall Vietnam - Laos Railway Project, one of the priorities of the Governments of Vietnam and Laos, demonstrated in the implementation of high-level agreements between the two Parties and two States on economic development and infrastructure development.
In March 2022, FLC and Lao Petroleum Trading Company also signed a memorandum of understanding to cooperate in developing the Vientiane - Vung Ang railway project connecting Laos - Vietnam.
The Vientiane – Vung Ang railway has a total length of 554.7 km, spanning Laos and Vietnam. The project has a double track scale, 1,435 mm gauge, speed of 150 km/h, total investment of about 149,550 billion VND, implemented under the PPP method.
In particular, the Mu Gia - Tan Ap - Vung Ang section is also proposed to be invested under the PPP method with a total length of about 103 km, including 8 stations (1 main station, 7 intermediate stations) with a total investment of about 27,485 billion VND.
This railway will connect Vientiane to Vung Ang port, connecting with the Laos-China railway, expected to create an extended freight route to northern Laos and southern China.
The terminus of this railway line, Vung Ang port, will play an important role in promoting economic activities of the two countries through trade and maritime transport, towards the markets of Northeast Thailand, China, Korea and Japan.
Nearly 27.26 billion USD of foreign investment capital registered in Vietnam, the growth trend is slowing down
Total foreign investment capital registered in Vietnam in the first 10 months reached nearly 27.26 billion USD, up only 1.9% over the same period last year. Notably, newly registered capital decreased compared to the same period in 2023.
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| Amkor's project to increase investment capital by an additional 1.07 billion USD has helped foreign investment capital adjust and maintain its "form". |
According to data just released by the Foreign Investment Agency (Ministry of Planning and Investment), as of October 31, 2024, the total registered foreign investment capital in Vietnam reached nearly 27.26 billion USD, an increase of 1.9% over the same period in 2023.
Of these, in terms of new registration, there were 2,743 projects, with total registered capital reaching nearly 12.23 billion USD, up 1.4% and down 2.5% respectively over the same period last year.
Meanwhile, regarding capital adjustment, there were 1,151 projects registered to adjust investment capital, up 6%, with the total registered capital increase reaching nearly 8.35 billion USD, up 41.7% over the same period.
Regarding investment through capital contribution and share purchase, in 10 months, there were 2,669 capital contribution and share purchase transactions by foreign investors, with a total capital contribution value of more than 3.68 billion USD, down 10.4% and 29% respectively compared to the same period.
Looking at the above figures, it can be seen that although foreign investment capital in Vietnam is still in a positive trend, it is showing signs of slowing down. In 10 months, the total registered foreign investment capital in Vietnam increased by only 1.9%, down 9.7 percentage points compared to the increase in 9 months.
In particular, new investment capital decreased by 2.5% after a period of strong growth. The number of newly registered projects also increased slightly by only 1.4% compared to the same period last year. And the reason pointed out by the Foreign Investment Agency is that new investment projects in October 2024 were small in scale, with only a few projects having investment capital from over 100 million USD to over 300 million USD. Meanwhile, in October 2023, there were 3 projects with large investment capital from over 500 million USD to 1.5 billion USD.
Investment capital through capital contribution and share purchase is also continuing to decline. On the contrary, adjusted investment capital in the 10 months is still maintaining a strong increase (41.7%). This is a positive point related to the picture of attracting foreign investment in Vietnam from the beginning of the year to the year.
Another positive point is that disbursed capital still maintains its performance. According to the figures announced by the Foreign Investment Agency, in 10 months, about 19.58 billion USD of foreign investment capital was disbursed, an increase of 8.8% over the same period in 2023.
Also a positive trend is that many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), manufacturing of components, electronic products, products with high added value... have received new investment and capital expansion in 10 months.
Commenting on the situation of attracting foreign direct investment (FDI) into Vietnam, the Foreign Investment Agency said that investment capital continues to focus on provinces and cities with many advantages in attracting foreign investment (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion...), such as Bac Ninh, Ho Chi Minh City, Quang Ninh, Hai Phong, Ba Ria - Vung Tau, Binh Duong, Hanoi, Dong Nai, Bac Giang, Ninh Thuan. These 10 localities alone accounted for 79.9% of new projects and 70.9% of the country's investment capital in 10 months.
Figures from the Foreign Investment Agency also show that in the past 10 months, foreign investors have invested in 18 out of 21 sectors of the national economy.
Of which, the processing and manufacturing industry took the lead with a total investment capital of nearly 17.1 billion USD, accounting for nearly 62.6% of the total registered investment capital, down 13.5% over the same period. The real estate business ranked second with a total investment capital of nearly 5.23 billion USD, accounting for nearly 19.2% of the total registered investment capital, 2.38 times higher than the same period. Next were the electricity production and distribution industries; wholesale and retail with a total registered capital of nearly 1.12 billion USD and nearly 1 billion USD respectively. The rest were other industries.
In terms of investment partners, there were 106 countries and territories investing in Vietnam in the first 10 months of 2024. Of which, Singapore took the lead with a total investment capital of more than 7.79 billion USD, accounting for nearly 28.6% of the total investment capital, up 61.3% over the same period in 2023. China ranked second with more than 3.61 billion USD, accounting for 13.3% of the total investment capital, up 5.4% over the same period. Followed by Korea, Japan, Hong Kong...
Da Nang needs 538 billion VND to invest in the National Highway 14B intersection connecting Da Nang - Quang Ngai Expressway
The total estimated investment for the National Highway 14B intersection connecting Da Nang - Quang Ngai Expressway is 538 billion VND. Da Nang City proposed 269 billion VND from the central budget, the City will arrange the remaining capital.
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| Hoa Lien - Tuy Loan expressway is under construction. |
On November 5, the Department of Transport of Da Nang announced that the City People's Committee has just proposed to the Ministry of Transport to request investment policy for the National Highway 14B intersection connecting Da Nang - Quang Ngai Expressway (Tuy Loan intersection).
According to the People's Committee of Da Nang City, Tuy Loan intersection was approved by the Ministry of Transport in 2018, including the main routes of Da Nang - Quang Ngai Expressway and Hoa Lien - Tuy Loan Expressway with a scale of 4 lanes; branch of National Highway 14B including 2 motor lanes and 1 merging lane on each side.
However, according to the Decision Approving the Road Network Planning for the period 2021 - 2030, with a vision to 2050, the Da Nang - Quang Ngai and Hoa Lien - Tuy Loan expressways will be invested with a scale of 6 lanes before 2030; National Highway 14B 14B according to the Da Nang City Planning for the period 2021-2030, with a vision to 2050, will have a scale of 6 lanes.
Therefore, Da Nang City proposes that the Ministry of Transport unify the investment to complete the bridge section to ensure compliance with the road network planning for the 2021-2030 period and the Da Nang City Planning to ensure synchronization and meet the future needs of the city.
Total investment after adjusting the scale is expected to be 538 billion VND.
The city proposed that the Ministry of Transport report to the Prime Minister to assign the Ministry of Planning and Investment to arrange capital from the central budget for Da Nang City to implement the Project, about 269 billion VND, equivalent to 50% of the total investment, from the medium-term public investment capital for the period 2021-2025 and 2025.
Da Nang City will allocate the remaining capital to implement the project in accordance with the direction of the Prime Minister in Notice No. 417/TB-VPCP dated September 13, 2024.
According to the People's Committee of Da Nang City, separating the Tuy Loan intersection project into an independent project and assigning the city as the managing agency will create favorable conditions for investment implementation, contributing to speeding up the project's completion in the coming time.
Investing in the intersection of National Highway 14B with the Da Nang - Quang Ngai Expressway not only benefits the traffic infrastructure but also promotes socio-economic development and improves the quality of life for people.
Proposal to establish public ownership of assets of National Highway 51 BOT Project
The Ministry of Transport has just sent an official dispatch to the Ministry of Finance requesting that the ministry soon establish public ownership of the assets of the National Highway 51 expansion project, section Km0+900-Km73+600, in Dong Nai and Ba Ria - Vung Tau provinces under the form of a BOT contract.
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| A section of National Highway 51 through Dong Nai. |
The Ministry of Transport said that the management and maintenance of the main route of National Highway 51 is very urgent; at the same time, road traffic infrastructure assets are special assets, serving public purposes, people's livelihood, economic development and ensuring national security and defense... In any circumstances and conditions, the State management agency must organize the management and exploitation of assets to ensure continuous, smooth and safe traffic.
“Therefore, the Ministry of Transport continues to request the Ministry of Finance to unify the establishment of public ownership of the assets that have been handed over by the project enterprise to the Vietnam Road Administration to support competent State agencies to promptly organize and implement the management, maintenance and exploitation of assets according to regulations,” the leader of the Ministry of Transport proposed.
This is the third time in the past 6 months that the Ministry of Finance has been asked to establish public ownership of the assets of the BOT project to expand National Highway 51 in Dong Nai and Ba Ria - Vung Tau provinces.
It is known that the investor has requested to temporarily suspend project maintenance work on these assets and hand over the Project assets to the Vietnam Road Administration by the end of January 2023.
By April 19, 2023, the Project investor BVEC had handed over 72.7 km including the road length and bridge length over 25 m belonging to the section from Km0+900-Km73+600 National Highway 51 to the Vietnam Road Administration.
However, the investor has not yet handed over the operator's house, toll collection equipment system, as well as other assets serving the Project.
To ensure continuous management, maintenance and exploitation of transport infrastructure assets, ensure traffic safety, and protect and extend the exploitation period of transport infrastructure assets, the Vietnam Road Administration has received the assets handed over by BVEC to carry out management, maintenance and preservation of assets.
According to the contract between the Vietnam Road Administration and BVEC signed in 2009, the total toll collection period for the BOT project to expand National Highway 51 is 20.66 years, of which the toll collection period to recover capital is about 16.66 years (from August 3, 2012 to March 27, 2029); the toll collection period to generate profit is 4 years (from March 28, 2029 to March 28, 2033).
By the end of February 2017, the project's capital recovery fee collection period was adjusted to 20 years, 6 months and 11 days, that is, from July 1, 2009 to January 12, 2030, and 4 years of profit-generating fee collection.
At the end of 2018, due to some changes related to input factors and recommendations from the State Audit, the Vietnam Road Administration recalculated the time to collect tolls to generate profit and reduced the time to generate profit from 4 years to 9 months.
To avoid BVEC from collecting tolls beyond the time limit, on January 9, 2023, the Vietnam Road Administration issued Document No. 137/CDBVN to temporarily suspend toll collection at toll stations under the BOT Project to invest in expanding National Highway 51 from 7:00 a.m. on January 13, 2023 while negotiations between the two sides have not yet ended.
There are currently two issues that have not reached consensus between the investor and the Vietnam Road Administration regarding the contract fee for the BOT project to expand National Highway 51: the equity preservation fee of 8.7%/year and the time for collecting tolls to generate profit.
At the end of October 2024, the Ministry of Transport issued a document directing the Vietnam Road Administration and relevant agencies to urgently resolve the existing problems of the BOT project to invest in expanding National Highway 51 in accordance with its authority and legal regulations.
Ho Chi Minh City proposes to retain at least 21% of budget to prioritize infrastructure investment
The Ho Chi Minh City People's Committee has just reported the summary of the Project to adjust the budget regulation ratio for Ho Chi Minh City in the period of 2022 - 2025, with a vision for 2026 - 2030 (under the Ho Chi Minh City Management Innovation Breakthrough Program).
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| The intersection connecting Ben Luc – Long Thanh Expressway with National Highway 1 through Binh Chanh District, Ho Chi Minh City. Photo: Le Toan |
The summary report shows that the budget allocation rate for the City has continuously decreased from 33% in 2000 to 18% in the period 2017 - 2020. By the period 2022 - 2025, it will increase to 21%.
Meanwhile, the City needs more resources for investment because in recent times, the City has contributed a high proportion to the country's economic growth (about 23% of national GDP).
Furthermore, the City has the highest budget revenue transferred to the Central Government in the country with an annual contribution of 27% of the national budget revenue.
However, the City is facing many new and increasing challenges such as: economic growth compared to the whole country is decreasing, the export ratio compared to the whole country is decreasing, the superiority in competitiveness of the investment and business environment is also decreasing, inadequate traffic infrastructure, greatly hindering the faster and sustainable development of the City.
In August 2020, the Ho Chi Minh City Party Committee submitted a document to the Politburo on the policy of implementing the Project to adjust the budget allocation rate for the City in the period of 2022 - 2025 to 23% and the period of 2026 - 2030 to 26%. However, the City was only approved at 21%.
Retaining 21% of the budget has helped the City have resources to invest in key infrastructure projects and improve people's welfare, increasing income for officials, civil servants, public employees and workers.
Regarding the direction and tasks of developing Ho Chi Minh City until 2030, with a vision to 2045, the City proposes to keep the City's budget regulation rate at 21% until the end of 2025 and continue to keep it at no lower than 21% in the following years to create conditions for the City to have resources to invest in developing key infrastructure projects and implementing strategic tasks and breakthroughs.
Regarding solutions to effectively use resources for development investment, the City focuses on disbursing public investment capital, determined to complete the public investment plan, and accelerate the implementation of key projects.
The city will review, classify and develop plans and roadmaps to have solutions to handle difficulties and problems that have existed for many years, especially important national projects, key projects, and projects using ODA capital that are behind schedule.
The state capital in PPP projects is for "support" not "capital contribution"
Discussing the Draft Law amending and supplementing a number of articles of the Law on Planning, the Law on Bidding, the Law on Investment, and the Law on Investment under the public-private partnership (PPP) model, the majority of National Assembly deputies agreed with the Government's proposal to allow the application of a state capital ratio of more than 50%, but not exceeding 70% of the total investment in some specific cases.
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| Applying the PPP investment method will bring long-term investment efficiency when private investors commit to organizing business, operating, maintaining and servicing the project for 20-30 years. |
However, there are also opinions suggesting to consider this regulation, because if using 70% of state capital, it should be used for public investment. There are also opinions suggesting that there is no need to regulate the limit on the use of state capital, the specific ratio will be determined based on the financial plan of each project.
In particular, there are opinions suggesting to clarify that when using 70% state capital, the PPP project enterprise will have 70% state capital contribution, 30% private capital, becoming a state-owned enterprise.
In the explanatory report sent to the National Assembly deputies, the Ministry of Planning and Investment clarified: In Submission No. 675/TTr-CP, the Government reported specifically on the practical implementation of infrastructure investment projects to create momentum for socio-economic development in some disadvantaged regions.
These projects have low initial transportation demand, so they need more state capital participation to ensure feasibility when attracting investment under the PPP method. Meanwhile, some projects, just calculating the cost of site clearance and resettlement, have exceeded 50% of the total investment of the project.
In case of investing in all the above urgent projects with public investment, the pressure on the state budget will be very large, not ensuring the ability to balance.
“In addition, applying the PPP investment method will bring long-term investment efficiency when private investors commit to organizing business, operating, maintaining and servicing the project for 20-30 years, the state budget will not have to be allocated to carry out these activities,” the Ministry of Planning and Investment explained in cases where the state capital ratio can be applied at more than 50%, up to 70% of the total investment.
Furthermore, it is also necessary to stipulate a limit on state capital participation in PPP projects. This will be the basis for state agencies to consider and choose the appropriate investment method for the project (public investment or PPP investment); as a condition to determine the ability to balance and arrange the budget in each period.
The regulation of state capital limits also aims to support the state budget to attract private investors but still ensures specific conditions to avoid widespread application that does not meet investment efficiency.
In particular, the Ministry of Planning and Investment clarified that, according to the provisions of the PPP Law and international practice, the State capital participation in a PPP project is of the nature of "supporting" investors and project enterprises to increase the financial feasibility of the project, not of the nature of "contributing capital" to the enterprise to share profits.
Therefore, the PPP project enterprise established by the investor is a private enterprise, operating under the law on enterprises and complying with the signed project contract. The state capital will be paid and disbursed to the investor and the project enterprise according to the progress and ratio committed in the contract.
The Government submitted to the National Assembly an adjustment to the investment policy of the Long Thanh Airport Project.
On November 6, the Government issued Document No. 747/CP – TTr to the National Assembly on adjusting the investment policy of the Long Thanh International Airport Project.
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| Construction of Long Thanh International Airport Phase 1. |
Accordingly, based on the need for investment and the ability to balance investment capital, the Government recommends that the National Assembly consider and adjust Resolution No. 94/2015/QH13 dated June 25, 2015 on the Project investment policy and Resolution No. 95/2019/QH14 dated November 26, 2018 on the Feasibility Study Report of Phase 1 of the Project in the Joint Resolution of the 8th Session of the 15th National Assembly as a basis for implementation.
Specifically, the Government proposed that the National Assembly adjust the scale and implementation time of Phase 1 in Clause 6, Article 2 of Resolution No. 94/2015/QH13 to: "invest in the construction of 2 runways in the North and 1 passenger terminal and synchronous auxiliary items with a capacity of 25 million passengers/year, 1.2 million tons of cargo/year; completed and put into operation by the end of 2026 at the latest".
Adjust the investment scale of Phase 1 in Clause 1, Article 1 of Resolution No. 95/2019/QH14 to: "invest in the construction of 2 runways in the North and 1 passenger terminal and synchronous auxiliary items with a capacity of 25 million passengers/year; 1.2 million tons of cargo/year".
The Government also proposed that the National Assembly allow the Government to organize the approval of the Feasibility Study Report adjusting Phase 1 of the Project under its authority without having to report to the National Assembly for approval.
Thus, in addition to the completion schedule being extended to the end of 2026 instead of the end of 2025, the Long Thanh International Airport Project Phase 1 will have an additional runway.
In Submission No. 747, the Government stated that at the time of submitting the project investment policy for approval, due to difficulties in determining capital sources to invest in Phase 1 of the project, the National Assembly decided that Phase 1 of the project would only invest in the construction of 1 runway in the northern area of the Port.
In case Long Thanh International Airport has to temporarily suspend operations due to an incident on runway 1, Tan Son Nhat International Airport will play a supporting role for Long Thanh.
In Phase 2, the Project will invest in building an additional open-configuration runway in the South of the Port (runway 2) to meet the exploitation capacity of about 50 million passengers/year; Phase 3 will invest in building 2 additional runways including 1 runway in the North (runway 3) and 1 runway in the South (runway 4) to meet the exploitation capacity of about 100 million passengers/year.
However, during the implementation of Phase 1, Vietnam Airports Corporation (ACV) - the investor of Component 3 Project realized that the construction of runway 3 right next to and 400 m north of runway 1 under investment, to put into operation synchronously with Phase 1 will bring many benefits to the management, operation and contribute to improving the investment efficiency of Long Thanh International Airport.
Specifically, the addition of a second runway at Long Thanh International Airport phase 1 will meet the exploitation needs when one runway has problems.
It is known that according to the planning, Tan Son Nhat International Airport can serve about 50 million passengers/year. In 2023, Tan Son Nhat's exploitation output reached over 41 million passengers. It is expected that by 2030, the total air transport demand of Ho Chi Minh City and neighboring provinces will be about 71 million passengers/year.
Thus, if runway 1 of Long Thanh International Airport has a problem, flights will have to be transferred to Tan Son Nhat. At that time, Tan Son Nhat will be overloaded, planes will have to wait in the air, causing additional costs and affecting the environment.
Therefore, the immediate construction of runway 3 will meet the needs of exploiting Phase 1 of Long Thanh International Airport when runway 1 has an incident, without having to switch to Tan Son Nhat; at the same time, it will provide good support for Tan Son Nhat in case of an incident.
In case after Phase 1 is put into operation, investing in the construction of runway No. 3 will disrupt the operation of the Port due to the need to connect infrastructure, technical control systems... with runway No. 1.
In addition, the construction of runway 3 will affect the operation of the Port due to dust generated during construction.
The government said that currently, to ensure the operational clearance of runway 1, the foundation of runway 3 has been basically leveled to the design elevation, only needing to build the road surface structure and install equipment to be able to operate.
Therefore, the investment cost is only about 3,304 billion VND, used from post-bidding savings and reserves, so it does not exceed the total investment of 99,019 billion VND of Component Project 3 implemented by ACV.
Thus, with no increase in investment costs, the Port's capacity and operational efficiency increase, thereby contributing to improving the investment efficiency of Phase 1 and Phase 2 of the Project.
In addition, investing in runway 3 in Phase 1 has many advantages such as: it is consistent with the Port Planning approved by the Prime Minister; the site has been cleared and handed over to ACV; the roadbed has been basically leveled to the design elevation; saving costs and construction time; the capital has been arranged by ACV because it is still within the approved total investment.
“This investment not only improves the investment efficiency of Phase 1 and Phase 2 of the Project but also contributes to completing the national important transport infrastructure system, thereby reducing logistics costs, improving the competitiveness of the economy, and serving well the task of ensuring national defense and security,” the Government affirmed.
Da Nang plans to start construction of a project worth more than VND817 billion in 2025
The main drainage project from the downstream of the drainage canal of the High-Tech Park to the flood drainage canal of Hoa Lien commune was approved by the City People's Council on December 15, 2022. The City People's Committee approved the construction investment project on April 11, 2024 and assigned the Management Board of Infrastructure Development Projects of Da Nang Industrial and High-Tech Parks as the investor.
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Main drainage project from downstream of High-tech Park canal to Hoa Lien flood drainage canal with an investment of more than 817 billion VND. |
The project will invest in canals and regulating lakes, including the 1.64 km long southern canal, the 0.574 km long northern canal, two regulating lakes, cross drainage works, traffic, medium voltage lines, transformer stations, lighting and irrigation canal restoration... with a total investment of VND 817,186 billion.
According to the Department of Construction of Da Nang City, the Management Board of Infrastructure Development Projects of Da Nang Industrial and High-Tech Parks is also coordinating with the People's Committee of Hoa Vang District to carry out the project's site clearance work. Of which, 528/874 records have been counted.
According to the Department of Construction of Da Nang City, the main drainage project from the downstream of the drainage canal of the High-Tech Park to the flood drainage canal of Hoa Lien commune is expected to start construction in May 2025. This project belongs to the group of works and projects that will start and be completed to celebrate the 50th anniversary of the liberation of Da Nang city and the Party Congress at all levels for the 2025-2030 term.
Requiring strategic investors to disburse all capital within 5 years is very difficult.
At the regular press conference on the afternoon of November 7, Mr. Pham Tuan Anh, Head of the Planning and Synthesis Department (Department of Planning and Investment of Ho Chi Minh City), informed about the problems and difficulties arising after one year of implementing Resolution 98 on piloting a number of specific mechanisms and policies for the development of the City.
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| Mr. Pham Tuan Anh, Head of the General Planning Department (Department of Planning and Investment of Ho Chi Minh City) informed at the press conference. Photo: Trong Tin |
According to Mr. Pham Tuan Anh, after one year of Resolution 98 coming into effect, the City has recorded a number of difficulties and problems arising.
The first is related to the content of identifying strategic investors to enjoy preferential levels, preferential forms, and participate in investment according to simpler regulations and procedures than current regulations.
According to Resolution 98, strategic investors must commit to disbursing the entire total investment capital within 5 years from the date of investment policy decision or investment license issuance. This will affect the implementation of investors participating in large projects.
“For example, Can Gio International Transit Port requires a huge amount of capital. In addition to construction investment, the port needs to transfer goods according to its designed capacity, so it takes a lot of time. Recently, when appraising the project, the Ministry of Planning and Investment reported to the Prime Minister this difficulty, disbursing all the total capital within 5 years is very difficult and reduces the feasibility of the project,” said Mr. Tuan Anh.
Second, Resolution 98 allows the use of Ho Chi Minh City's budget to support other localities for inter-regional projects and connectivity projects. For example, Ring Road 3, Ring Road 4 and some expressways.
The city can provide partial budget support to implement items in the beltway project. However, there are no specific instructions on the procedures for other localities to receive and approve this source of capital.
Mr. Tuan Anh said that this content still causes confusion for the City and localities when implementing. The City People's Committee has proposed that the Ho Chi Minh City National Assembly Delegation and the People's Council propose that the National Assembly update and supplement this content into the Law on Public Investment, or amend, supplement, and clarify it further in Resolution 98.
Another problem presented by Mr. Pham Tuan Anh is that Resolution 98 allows the implementation of PPP projects in Thu Duc City. In fact, Thu Duc City has been decentralized and delegated the authority to handle procedures for projects, however, the sequence of implementation steps has not been clarified and needs to be supplemented.
More than 40 German enterprises come to Dong Nai to seek investment opportunities
On November 7, Dong Nai Provincial People's Committee received and worked with a delegation of more than 40 German enterprises led by Mr. Alexander Ziehe, Chairman of the Association of German Enterprises in Vietnam, who came to Dong Nai to explore investment opportunities.
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| Vice Chairman of Dong Nai Provincial People's Committee Vo Van Phi (standing) speaks at the working session with German businesses. |
At the working session, informing German enterprises, Mr. Vo Van Phi, Vice Chairman of Dong Nai Provincial People's Committee, said that there are currently 12 projects of German enterprises investing in Dong Nai with an investment capital of over 273 million USD.
German enterprises operating in Dong Nai have achieved effective investment and business results and complied with legal regulations on investment, environment, construction, labor, etc., making important contributions to the local economic and social development.
The Vice Chairman of Dong Nai Provincial People's Committee said that by 2026, Long Thanh International Airport in Dong Nai will complete and put into operation phase 1. This project will create development momentum not only for Dong Nai but also for the entire Southern key economic region.
At that time, Dong Nai province will have full means of transportation including: road, air, rail, inland waterway, to increase investment attraction in the locality.
With the infrastructure being completed, Mr. Alexander Ziehe, Chairman of the Association of German Enterprises in Vietnam, commented that Dong Nai is an attractive destination for German investors thanks to its easy connectivity to seaports and airports and developing infrastructure.
This is demonstrated by the fact that the province has attracted a number of outstanding projects from German enterprises in the past year, such as the project of Ziehl-Abegg Vietnam Co., Ltd. in Nhon Trach district; the Pearl Vietnam Factory project in Long Thanh district.
In addition, some German enterprises are investing in Dong Nai such as Bosch, Schaeffler, Bayer, Neumann Gruppe, Friwo, Framas... expanding their investment.
“I am very impressed with the open and professional environment that Dong Nai is building for the foreign business community, including German businesses,” Mr. Alexander Ziehe commented.
However, at the meeting, some German enterprises investing in Dong Nai reported that they are facing difficulties and problems with administrative procedures related to land; congestion in port areas and industrial zones, causing delays in transporting goods; and difficulties in visa and license procedures for experts and senior managers.
German businesses recommend that Dong Nai Provincial People's Committee simplify administrative procedures, shorten the process of granting environmental approvals and work permits. Businesses also recommend that Dong Nai consider reducing taxes for businesses that expand or reinvest.
Receiving comments from German enterprises, Mr. Vo Van Phi, Vice Chairman of Dong Nai Provincial People's Committee, directed departments, branches, Tax Department, Customs Department... to record difficulties, problems, proposals and recommendations of enterprises for consideration, resolution and overcoming in order to improve the investment environment of the province.
The leader of Dong Nai Provincial People's Committee affirmed that Dong Nai Provincial Government always creates favorable conditions for enterprises to invest, produce and do business in the province.
Investment in Ho Chi Minh City's Ring Road 4 prioritizes capital from PPP
The Ho Chi Minh City Department of Transport has just issued Document No. 14660/SGTVT-KH reporting to the Ho Chi Minh City People's Committee on the completion of the Pre-Feasibility Study Report for the Project to build Ring Road 4, Ho Chi Minh City.
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| Route map of Ring Road 4, Ho Chi Minh City. |
According to the current report, the Department of Transport is coordinating with the consulting unit and related units to review the overall Pre-Feasibility Study Report of the Ho Chi Minh City Ring Road 4 Project.
On October 25, 2024, the Ministry of Planning and Investment held a meeting with leaders of the People's Committees of provinces and cities where the Project passes through, including Ho Chi Minh City, Long An, Binh Duong, Dong Nai, and Ba Ria - Vung Tau.
Based on reports from local leaders and opinions from leaders of specialized agencies under the Ministry of Planning and Investment, Minister of Planning and Investment Nguyen Chi Dung agreed with localities on a number of contents to speed up the investment progress of the Ring Road 4 Project, Ho Chi Minh City.
In particular, research investment methods to propose suitable and feasible investment methods according to the principle of prioritizing investment in the form of PPP (note to update the current BT method that the Government is submitting to the National Assembly).
In case it is necessary to arrange State budget capital to participate in the Project to increase feasibility, localities shall prioritize balancing local budget capital sources.
Localities can propose specific mechanisms and policies to implement component projects through their localities (if necessary).
To ensure the progress of completing the Pre-Feasibility Study Report of the Ring Road 4 Project, the Ho Chi Minh City Department of Transport recommends that the City People's Committee send a document to the People's Committees of Long An, Binh Duong, Dong Nai, and Ba Ria - Vung Tau provinces to request review and early completion of the dossiers of component projects in the area according to the content agreed upon in the meeting at the Ministry of Planning and Investment on October 25, 2024.
Quang Tri is about to have another 250-bed hospital
Recently, the Management Board of the 268 Military Hospital Construction Investment Project (new facility), Military Region 4 is selecting a contractor to implement the 4 Military Hospital Project (facility 2) under the Logistics Department, Military Region 4.
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| Perspective of Military Hospital 4 |
The project has a total investment of 550 billion VND from the State budget, including 6 construction packages and is currently being widely bid online. The specific packages include: Package XL-04 for construction of the main building (176.997 billion VND); Package XL-05 for construction of solid waste building, power station, medical gas building (36.953 billion VND); Package XL-06 for construction of infectious disease internal medicine building (43.809 billion VND); Package XL-07 for construction of housing for officers and employees (46.64 billion VND); Package XL-08 for construction of air conditioning system, fire protection system (78.471 billion VND); Package XL-10 for construction of outdoor power supply system, 22kV line, transformer station (7.2 billion VND).
The project includes hospital block items with a scale of 250 beds, barracks block, including: office building, conference hall, duty house, commander's house, guest house, staff house, dining room, multi-purpose sports hall, technical infrastructure, equipment, accompanying tools... with a total floor area of about 34,000 m2.
The project is built in Cam Lo district, Quang Tri province with the design to serve the work of "combining military and civilian medicine", ready to respond to emergency situations and carry out rescue missions in 3 southern provinces of Military Region 4: Quang Binh, Quang Tri, Thua Thien - Hue as well as neighboring Laos.
The bids are expected to be opened on November 13 and 17, 2024.
Investing 19,784 billion VND to build 60.9 km of 4-lane Nam Dinh - Thai Binh expressway
The Chairman of Thai Binh Provincial People's Committee has just signed Decision No. 1799/QD-UBND approving the Investment Project to build the Ninh Binh - Hai Phong Expressway, the section through Nam Dinh and Thai Binh provinces under the PPP method. This is a project proposed by Geleximco Group as the investor.
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| Illustration photo. |
The project has a starting point (Km 19+300) at the beginning of the Day River overpass in Nam Dinh, in Nghia Thai commune, Nghia Hung district, Nam Dinh province; the end point (Km 80+200) at the intersection between the new National Highway 37 and the coastal road, in Thuy Trinh commune, Thai Thuy district, Thai Binh province.
The total length of the project route is about 60.9 km (of which the section through Nam Dinh province is 27.6 km long; the section through Thai Binh province is 33.3 km long) and will be built according to expressway standards (TCVN 5729:2012), 4 complete lanes with a roadbed width of 24.5 m, and a design speed of 120 km/h.
The project will build 23 bridges on the main route, of which the longest bridge is the Red River overpass connecting Thai Binh and Nam Dinh, 1,115 m long; 4 overpasses; 4 intersections; and an intelligent traffic management system.
On the route, it is planned to build 1 rest stop at Km 33+500 (Truc Ninh district, Nam Dinh province) and 1 at Km 51+900 (Kien Xuong district, Thai Binh province). The investment, business and exploitation plan of the rest stop is implemented in accordance with the provisions of law (not within the scope of this project).
Total land use demand is about 538.44 ha (including planned resettlement areas; not including rest stop areas), of which residential land is about 8.91 ha; agricultural land is about 453.85 ha; land for construction of educational and training facilities is about 0.38 ha; land for production and business is about 2.1 ha; other non-agricultural land is about 73.2 ha (including land types: traffic, irrigation, cemetery land, energy construction land).
With the above investment scale, the total investment of the Project excluding interest is 19,149.275 billion VND; the total investment including interest is 19,784.55 billion VND.
The project implementation period is from 2023, basically completed in 2027, and put into operation from 2028.
In this Project, the capital that the investor and project enterprise are responsible for arranging is 10,447.55 billion VND (52.81%); the State capital is 9,337.00 billion VND (47.19%) which is reserved for supporting the construction of works, infrastructure systems of 6,200.00 billion VND and paying compensation, site clearance, and resettlement support costs of 3,137 billion VND.
With the investor's profit rate of 10.78%/year; loan interest rate of 9.33%/year; starting ticket prices (in 2028) for 5 groups of vehicles are respectively: 2,100 - 3,000 - 4,400 - 8,000 - 12,000 (VND/km)... The project will collect fees to recover capital within 25 years and 4 months.
The form of investor selection for the Project is domestic open bidding; the time to organize investor selection is the 4th quarter of 2024.
The Chairman of the People's Committee of Thai Binh province assigned the Management Board of Investment Projects for Construction of Traffic Works of Thai Binh province to manage the State capital participating in the project to ensure savings and efficiency, to avoid negativity, loss, waste and to comply with the provisions of law.
This unit will also preside over and coordinate with relevant agencies to complete the bidding documents, submit them to competent authorities for consideration and approval as a basis for selecting investors to implement the project; at the same time, organize the selection of investors in accordance with the provisions of law.
According to the Ministry of Transport, the Ninh Binh - Hai Phong expressway is of great importance, connecting the provinces in the South of the Red River, the North Central region with Lach Huyen international gateway port, connecting the coastal provinces in the Red River Delta; investing in the expressway will open up new development space for the South of the Red River Delta and the North Central region; contributing to ensuring traffic safety; reducing logistics costs.
Once completed, the route will connect with expressways such as the North-South Expressway, Hanoi-Hai Phong Expressway, National Highway 10, National Highway 1, National Highway 21, the new National Highway 37; economic development axes such as the economic development axis of Nam Dinh province, the new Nam Dinh-Lac Quan road, and the Thai Binh-Con Vanh road.
At the same time, it helps connect with Cat Bi International Airport, Van Don International Airport, seaports, and Mong Cai International Border Gate. With the nature and role of an inter-regional road, the investment and synchronous operation of the Ninh Binh - Hai Phong expressway will contribute to increasing the ability to connect traffic with roads in the region and between the coastal localities of the North.
In the fourth quarter of 2024, it is expected that 4 more sand mines will be licensed for the Ring Road 3 Project - Ho Chi Minh City.
The Ho Chi Minh City Department of Transport said that 6 sand mines have been licensed and are supplying sand for the Ring Road 3 Project through Ho Chi Minh City. It is expected that in the fourth quarter of 2024, 4 more sand mines will be licensed.
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| Construction of Ring Road 3 through Hoc Mon district, Ho Chi Minh City. Photo: Le Toan |
The information was announced by the Ho Chi Minh City Traffic Construction Investment Project Management Board (Traffic Board) on November 7.
According to the Ho Chi Minh City Department of Transport, the site clearance for the Ring Road 3 project through Ho Chi Minh City has reached 99.8% and is expected to be completed in November 2024. During the project implementation, many difficulties have been encountered, leading to prolonged compensation, support, and resettlement.
The reason is that the purchase and sale of many owners leads to difficulties in identifying owners and legal origins;
In Binh Chanh district, there are many cases where people own small areas, compensation costs are not enough to carry out financial procedures on resettlement, leading to stabilization of new residence.
In addition, the percentage of land in some localities such as the city.
Regarding the guarantee of the supply of construction materials, the transport briefing said that the localities have committed to support the Belt project 3 of Ho Chi Minh City with a total volume of 10 million m3 of sand, of which Vinh Long: 1.4 million m3; Tien Giang: 6.6 million m3 and Ben Tre: 2.0 million m3.
The localities have supported and drastically in the implementation of mining permits.
Up to now, contractors have actively mobilized from domestic commercial sand, Cambodian sand and sand are supported from localities to ensure the construction progress of weak ground and auxiliary work of the project.
The transport briefcase together with the construction contractors continues to coordinate closely with localities to accelerate the procedures for licensing the next tissue and proactively coordinate the supply of materials to the construction site from sand mines supported by localities to ensure the progress of the project.
The 3 -region Ring Road project of Ho Chi Minh City is 76 km long, passing 4 localities including Ho Chi Minh City, Dong Nai, Binh Duong and Long An with a total investment of VND 75,300 billion.
Over 3 years, Tam Anh - An Hoa Industrial Park only liberated 10 hectares
Vice Chairman of Quang Nam Province, Mr. Ho Quang Buu has just issued a written request to accelerate the compensation and site clearance of construction investment and business projects in Tam Anh - An Hoa Industrial Park.
Accordingly, Quang Nam province requires Nui Thanh district, Department of Natural Resources and Environment, the Management Board of economic zones and industrial parks of the province to coordinate in timely settlement of dossiers, procedures and existing contents and problems in compensation and site clearance (GPMB) of the project.
In case of problems beyond the authority, promptly report to the provincial People's Committee for consideration and settlement ...
According to the recommendations of An An Hoa Industrial and Urban Zone Joint Stock Company, the investor implementing the Tam Anh - An Hoa Industrial Park Project, the project's land clearance today has many difficulties.
According to this enterprise, up to now, it has been 3 years and 6 months from the date the project is approved by the Prime Minister, the compensation is only 10.66 ha/435.6ha.
An An Hoa Industrial and Urban Park Joint Stock Company suggested that Quang Nam province are interested in site clearance for the project, to start construction soon, attract secondary investors.
Tam Anh - An Hoa Industrial Park Project is adjusted to the progress of 4 stages.
Specifically, phase 1 will invest on an area of about 111 hectares; phase 2 will invest in an area of about 137 hectares; phase 3 has an area of about 147 hectares;
In March 2021, the Prime Minister decided to invest in building and trading infrastructure of Tam Anh - An Hoa Industrial Park (Nui Thanh district).
The project is implemented by An An Hoa Industrial and Urban Park Joint Stock Company with a land use of 435.8 ha.
Kon Tum rented more than 175,618 m2 of land to implement Dak To 1 hydroelectric project
The People's Committee of Kon Tum Province has just decided to give Dak Lot 1-3 Hydroelectric Co., Ltd. to rent 175,618.11 m2 of land in Mang Krí village, Nguk stamp commune, Kon Plong district, Kon Tum province to build Dak Lot 1 hydropower.
In the underground area of 8.481.61 m2; the ground area of the ground, water surface 167.136.5 m2. 2: 13.011.7 m2; auxiliary area: 10.561.8 m2;
The purpose of land use is the energy project, public lighting (implementing the construction of Dak Lot 1 hydropower project under the decision to approve the policy No. 420/QD-UBND dated May 16, 2021; Decision No. 579/QD-UBND dated September 9, 2024 on adjustment of the policy).
For underground works; the factory manager;
The form of land lease is the State for leasing land to pay for the annual land rent.
The Provincial People's Committee assigns the Department of Natural Resources and Environment to transfer the land cadastral information to the competent tax authority to determine the financial obligations as prescribed; With the State as prescribed.
The Department of Planning and Investment shall assume the prime responsibility for, and coordinate with relevant units, monitor, inspect and urge the implementation of the Dak Lot 1 hydropower project of Dak Lot 1-3 hydropower Co., Ltd. according to the goals, scale and progress of the project approved by competent state agencies as prescribed.
The Provincial Tax Department identifies, guides and promptly notify Dak Lot 1-3 hydroelectric Co., Ltd. to carry out dossiers, procedures and fully comply with financial obligations to the State in determining the unit price of land lease, land use levy, fees, fees and other financial obligations of the project in accordance with regulations, ensuring not to lose state budget.
The People's Committee of Kon Plong performs the state management function for land use, construction investment, environmental protection and the observance of other relevant legal provisions of Dak Lot Hydropower Co., Ltd., Lot 1-3; Violations related to the investment, construction and use of land (if any) ... related to the project of Dak Lo 1 hydropower project according to its competence.
Dak Lot 1-3 Hydroelectric Co., Ltd. urgently allocated all resources to complete the construction of works under the investment project approved by the competent authority;
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