The Most Profitable Toll Road Operator in Vietnam: State to Inject $1.6 Billion, Half of $260 Million Revenue Pays Interest and Covers Forex Losses

Deputy Prime Minister Ho Duc Phoc has signed a decision approving the investment plan and additional charter capital for the Vietnam Expressway Corporation (VEC) for the period of 2024 – 2026.

Accordingly, the approved charter capital of VEC by the end of 2026 is VND 39,366 billion, an increase of VND 38,251 billion compared to the present.

The additional charter capital will come from the Enterprise Development Fund, amounting to VND 1,562 billion over the three years from 2024 to 2026, and the state budget already allocated to the Ministry of Transport (now the Ministry of Construction) for investing in five expressway projects, with VEC as the investor. A total of VND 36,689 billion has been disbursed so far.

According to Minister of Finance Nguyen Van Thang, before the capital increase, VEC’s charter capital stood at only VND 1,115 billion, while the total investment in expressway projects undertaken by the enterprise exceeded VND 108,000 billion, creating a huge gap that caused financial difficulties for VEC and prevented it from meeting the debt-to-equity ratio regulations.

VEC Achieves Record Revenue in 2024

In 2024, VEC recorded net revenue of over VND 6,227 billion, a 22.7% increase compared to 2023. The company’s gross profit reached more than VND 3,603 billion, a 28% year-on-year increase.

Financial expenses amounted to over VND 3,015 billion, mainly comprising interest expenses (accounting for about 57% of total financial expenses).

After deducting expenses, the company’s post-tax profit stood at VND 725 billion, with the parent company’s post-tax profit reaching approximately VND 721 billion, a 16.7% increase compared to 2023.

VEC’s Notable Projects

VEC is currently the investor and manager of several crucial transportation infrastructure projects, with total investments amounting to hundreds of thousands of billions of VND.

Notably, the VEC Consortium was recently assigned to implement Package 3 of the Vanh Dai 4 – Hanoi Capital Region project, with a total investment of over VND 56,000 billion. The project is expected to be completed by 2027.

Previously, VEC was the investor in the Ben Luc – Long Thanh Expressway project, with a total investment of nearly VND 30,000 billion. This expressway is considered the southern artery and has completed about 80% of the work, with an expected opening in 2026.

As of the end of 2024, the uncompleted construction value of this project was VND 19,356 billion.

Another important project is the Ho Chi Minh City – Long Thanh – Dau Giay Expressway, with a total investment of nearly VND 20,000 billion in phase 1. There are proposals to expand this expressway from 4 to 8-10 lanes to meet the growing transport demand.

The Noi Bai – Lao Cai Expressway, with an investment of about VND 18,000 billion, is a strategic route connecting Hanoi with the northwestern provinces and the Lao Cai international border gate. It has been in operation since 2014.

Additionally, VEC operates other significant expressways, including Da Nang – Quang Ngai (VND 34,500 billion), Cau Gie – Ninh Binh (VND 8,974 billion), and Tuyen Quang – Phu Tho (VND 3,700 billion), contributing to the completion of the national expressway network.

With the continued assignment of large and strategic projects, VEC affirms its role as a leading force in Vietnam’s transportation infrastructure development.