Vietnam Plans Pilot Auctions of Toll Collection Rights on North–South Expressway Sections
Deputy Prime Minister Nguyễn Văn Thắng said Vietnam plans to pilot auctions or tenders for toll collection rights on selected projects, particularly sections of the North–South Expressway. He also discussed public investment disbursement and financing through official development assistance.
On the morning of November 12, Deputy Prime Minister Nguyễn Văn Thắng told the National Assembly during a question-and-answer session that Vietnam plans to pilot auctions and tenders for toll collection rights on selected projects, particularly sections of the North–South Expressway. The Ministry of Finance and the Ministry of Construction are coordinating the effort. Under this arrangement, the state would finance and build the infrastructure before handing it over to businesses to operate and collect tolls.
Deputy Prime Minister Nguyễn Văn Thắng answers questions at the National Assembly on the morning of November 12.（VietVance）
Nguyễn Văn Thắng said Vietnam’s current public–private partnership projects are mainly financed by businesses, which then collect tolls to recover their costs. The toll collection period is typically about 20 years, while bank loans usually run for about 10 to 12 years, so businesses must also contribute their own capital. Under the public–private partnership law, the state may cover 50% to 70% of the investment, depending on a project’s location and viability. For projects built by the state and then handed over to businesses to operate, he said businesses would avoid risks associated with land clearance, construction and price fluctuations, which could encourage their participation.
On public investment, Nguyễn Văn Thắng said the government is working to complete its full-year disbursement plan. About 74% of public investment funds had been disbursed nationwide in the first 10 months. He expects public investment to add 1.7 percentage points to economic growth, helping Vietnam pursue its 10% growth target this year. Some contractors may receive an advance of 30% of the contract value after signing, to buy materials and prepare for construction.
Nguyễn Văn Thắng also said Vietnam can no longer access low-cost official development assistance funding as it did in the past, but still has considerable room to borrow. He advocated continuing to raise such funds while fully calculating financing costs and reviewing conditions for construction and contractor selection to ensure the loans are used effectively and safely.
Source: VietVance
