- In the condition that the central budget can only meet part of demand, a series of new motorway projects for the next decade will have to mobilise capital from other sources and be assisted by new mechanisms and policies to meet the nation’s goal of having about 5,000 km of expressways by 2030.
Targeting 5,000 km of expressways by 2030
According to a report from the Ministry of Transport, Vietnam is currently operating 1,046 km of expressways and is expected to complete an additional 916 km by 2023.
The ministry is striving to push the total length of highways to 2.079km by 2025, 5,000 km by 2030 and over 9,000 km by 2050.
For its 5,000-km goal in the next decade, a draft plan on the network for the 2021-2030 period eyes the completion of a large number of motorways.
Specifically, five of them will be built in the northern midland and mountainous areas, including Cho Moi - Bac Kan, Ha Giang - Noi Bai - Lao Cai, Hoa Binh - Moc Chau - Son La, Dong Dang - Tra Linh, and Phu Tho - Cho Ben.
The Red River Delta region will have Ring Roads 4 and 5 in the Capital Region, while the north central and the central coastal region will build the Vinh - Thanh Thuy expressway.
The Central Highlands will see four new highways namely Tan Phu - Bao Loc, Bao Loc - Lien Khuong, Buon Ma Thuot - Van Phong, and Quy Nhon - Pleiku.
The numbers of expressways in the southeast region and Mekong Delta region will be eight each. Those in the former will be Dau Giay - Tan Phu, Bien Hoa - Vung Tau, Chon Thanh - Duc Hoa, Ho Chi Minh City - Chon Thanh, HCM City - Moc Bai, Go Dau - Xa Mat, and Ring Roads 3 and 4 of HCM City Region. Meanwhile, those in the latter will be Can Tho - Soc Trang - Tran De, Soc Trang - Bac Lieu - Ca Mau, Chau Doc - Can Tho, My An - Cao Lanh, An Huu - Cao Lanh, Cao Lanh - Lo Te - Rach Soi, Ha Tien - Rach Gia, and Hong Ngu - Tra Vinh.
With the planning, the ministry is expecting favourable transport conditions to gradually ease geographical distance restrictions among regions, cutting travel time and speeding up urbanisation in disadvantaged areas.
Strong decentralisation to local governments
The ministry has calculated that approximately 350.93 trillion VND, including 219.52 trillion VND from the State budget, will be needed for the 2021 – 2025 period. The figures for 2026 – 2030 will be about 395.67 trillion VND and 209.16 trillion VND, respectively.
To mobilise such huge amount, the ministry proposed the Government use between 3.5 and 4.5 percent of the nation’s annual gross domestic product (GDP) on developing transport infrastructure, with priorities given to public private partnership (PPP) projects which are unattractive to investors but bring about effective socio-economic outcomes for disadvantaged areas.
The ministry also suggested the Government continue to lure and effectively use official development assistance (ODA) and preferential loans from international sponsors.
The Government should form credit packages to support PPP projects and include highway projects among those entitled to preferential credit as regulated in the Government’s Decree 32/2017/ND-CP, the ministry said.
It added that the Government should also promote strong decentralisation to localities to run investment in transport infrastructure. The State capital for a project from central and local budgets does not include costs for site clearance and resettlement and does not exceed 50 percent of the total investment, the ministry suggested./.
|At a May meeting on expressway construction for 2021-2025 with an orientation to 2030, the Prime Minister requested that the direction to 2025 and vision to 2030 must clarify expressway investment demand, and keep abreast of the actual conditions, difficulties and obstacles to determine the right situation and take appropriate steps.
The goal is to basically complete the eastern part of the North-South expressway with an estimated length of about 3,000 km by 2025 and to have about 5,000 km of expressways by 2030.