The Government proposed that the National Assembly allow the use of public investment capital that has been assigned to the Ministry of Transport (MOT) to invest in the project with an amount of VND 36,689 billion (including VND 10,062 billion of counterpart capital from the state budget, VND 24,127 billion of ODA capital in projects implemented in the form of converting loan capital for re-lending into state budget allocation, VND 2,500 billion of state budget allocation capital for the Noi Bai - Lao Cai and Cau Gie - Ninh Binh projects) to convert into charter capital for VEC.

The Government also proposed that the National Assembly approve the investment policy to supplement the charter capital for VEC in the 2024 - 2026 period of VND 38,251 billion, including VND 1,562 billion from the Enterprise Development Investment Fund, VND 36,689 billion from the state budget (public investment capital has been assigned to the Ministry of Transport to invest in 5 expressway projects invested by VEC and has been disbursed).

According to the Government's assessment, VEC's charter capital is very low (VND 1,115 billion) compared to the investment scale (about VND 108,865 billion), so VEC has difficulty mobilizing capital sources to invest in expressway projects, ensuring the completion of the 5-year production, business and investment development plan for the period 2021 - 2025, Development Strategy to 2030, vision to 2035, especially for capital sources with low capital costs such as commercial loans and construction bond issuance.

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Photo: VEC

The additional charter capital will create conditions for VEC to develop sustainably, enhance financial capacity, ensure the implementation of commitments to customers and financial partners; at the same time, improve access to credit, ensure the basis for depreciation and accounting for assets such as expressways, promote the core and leading role in investment activities, management and exploitation of expressways.

According to the Development Strategy to 2030, vision to 2035 and the Production, Business and Investment Development Plan to 2025 approved by the State Capital Management Committee at Enterprises, VEC will balance 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 Expressway section (VND 15,000 billion), invest in expanding the Yen Bai - Lao Cai Expressway section (VND 7,000 billion).

VEC's estimated total investment for the above projects in the 2021 - 2025 period is VND 14,890 billion, and in the 2026 - 2030 period is VND 17,053 billion.

Vietnam Expressway Corporation (VEC) is a state-owned enterprise established in 2004, with the main business lines being investment in construction, management, maintenance and toll collection of national expressways.

To date, 5 expressway projects invested by VEC include: Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Ho Chi Minh City - Long Thanh - Dau Giay, Da Nang - Quang Ngai and Ben Luc - Long Thanh.

Phuong Dung