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Unlocking Transport Potential: Vietnam’s Ambitious 2025 Infrastructure Plan

18 December, 2024

The North-South Expressway’s Hoài Nhơn-Quy Nhơn section is in its final stages – Photo: Giao thông Newspaper

At the Ministry of Transport’s (MoT) working conference on November’s tasks and key December 2024 assignments, held on December 12, the Planning and Investment Department reported that in 2024, the MoT was assigned a capital plan of VND56,666 billion by the Prime Minister. During the implementation process, an additional VND18,815 billion was supplemented, bringing the total capital plan for the entire transport sector this year to VND75,481 billion.

Disbursement rate reached 70% in the first 11 months

As of the end of November 2024, the MoT disbursed approximately VND52,750 billion, equivalent to 70% of the assigned plan. This figure is lower than the same period last year (75% in 2023). However, it remains higher than the country’s average disbursement rate of 60.4%.

To achieve the target of disbursing at least 95% of the assigned capital plan, as directed by the Government, the MoT needs to disburse nearly VND23,000 billion in the last two months of 2024. The ministry acknowledged that this is a significant challenge and requires the efforts and determination of investors/project management boards, as well as close supervision from relevant agencies within the ministry.

According to Mr. Luu Quang Thin, Deputy Director of the Planning and Investment Department, the disbursement progress of the North-South Expressway projects for the 2017-2020 period has been slow and has not met requirements. Therefore, in the coming time, investors need to focus on accelerating the implementation of supplementary items (intelligent transport systems, toll stations…), striving to deploy them in December 2024 as a basis for disbursement; and complete the procedures for project completion and settlement to speed up the disbursement progress for 2024.

Regarding the North-South Expressway projects for the 2021-2025 period and several cross-expressways under construction (Bien Hoa-Vung Tau, Khanh Hoa-Buon Ma Thuot, etc.), the MoT continues to coordinate with local authorities to promptly resolve site clearance issues, relocate technical infrastructure works, and provide quarries for the projects. In addition, temporary payment, acceptance, and immediate payment upon completion of work volumes should be implemented to disburse the allocated capital.

For projects with capital extended from 2023 to 2024 (valued at VND3,370 billion from 13 projects), investors/project management boards should focus on implementation and prioritize disbursing the extended capital plan as regulated (only about VND1,360 billion out of VND3,370 billion has been disbursed so far, reaching 40%).

Regarding projects in the preparation stage, the MoT affirmed that it would resolutely accelerate the investment preparation procedures and ensure the timely commencement of projects according to the plan. This is especially crucial for projects utilizing surplus budget revenues from 2022, which have urgent progress requirements and substantial allocated capital for 2024, such as Cam Ly Bridge, tunnels and bridges on National Highway 1 (under the Railway Project Management Board), Cho Moi-Bac Kan Expressway (Project Management Board 2), and the route connecting Noi Bai-Lao Cai Expressway with Tuyen Quang-Phu Tho (Phu Tho Department of Transport).

Total capital allocation for 2025 exceeds VND87,000 billion

On December 6, 2024, the Prime Minister issued Decision No. 1523/QD-TTg, detailing the state budget estimates for 2025. Accordingly, the MoT was assigned VND71,135 billion (including surplus revenues from 2021, 2022, and 2023, the total capital plan for 2025 amounts to approximately VND87,000 billion).

The Planning and Investment Department emphasized that 2025 is of particular importance as it is the final year to accomplish the goals set by the 13th National Congress. It is also the year when nearly 1,000 kilometers of expressways are expected to be put into operation, and when preparation for several large-scale and urgent projects should be initiated (such as the high-speed railway and the railway connecting to China), amidst anticipated changes in organizational structure and personnel.

To fulfill the disbursement task for 2025, the Planning and Investment Department will continue to coordinate with investors to advise the Minister of Transport on allocating the 2025 plan to specific projects before December 31, 2024. Investors are responsible for formulating detailed disbursement plans on a monthly and quarterly basis, identifying critical paths for disbursement for each project, and reporting to the ministry before January 31, 2025, to serve as a basis for management, evaluation, and performance assessment.

Commencement of the Lao Cai-Hanoi-Hai Phong Railway Project in 2025

Regarding the high-speed North-South railway project, the Planning and Investment Department requested the Railway Project Management Board to promptly carry out tasks related to selecting consultants for the feasibility study report. Additionally, the Transport Development and Strategy Institute was assigned to finalize the proposal for developing human resources in the railway sector and the proposal for developing the railway industry.

For the Lao Cai-Hanoi-Hai Phong railway project, with a total investment of about $8.37 billion, the typical time for investment preparation is around 3-4 years. However, the Planning and Investment Department acknowledged that fulfilling the requirement of the Central Committee and the Prime Minister to commence the project in 2025 would be a significant challenge.

Therefore, the Railway Project Management Board should urgently submit the pre-feasibility study report to the MoT in December 2024 for feedback from relevant agencies. They should also coordinate in implementing the procedures for establishing the State Appraisal Council, completing the appraisal of the pre-feasibility study report before February 28, 2025, finalizing the dossier for submission to the Government before March 31, 2025, and presenting it to the National Assembly for approval of the investment policy at the May 2025 session.

The Vietnam Railway Authority, in collaboration with the Railway Project Management Board, should finalize the proposal for the investment policy of the project and submit it to the MoT in December 2024 for feedback from relevant agencies. They should strive to report to the Politburo in March 2025.

Additionally, the MoT will continue to carry out investment preparation procedures for other important projects, such as the Ho Chi Minh City-Trung Luong-My Thuan Expressway, the Ho Chi Minh City-Long Thanh Expressway, the Hanoi-Yen Vien-Phai Lai-Cai Lan Railway, and expressways to be implemented in the 2026-2030 period. The MoT will also coordinate in handling projects that have been halted or delayed to prevent wastefulness.

Phan Trang