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A bird’s-eye view of the Ministry of Transport’s conference this morning – Photo by Ta Hai.
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At the conference evaluating the performance of the Ministry of Transport in the first six months of 2024, held on July 3rd, Mr. Uong Viet Dung, Chief of the Office of the Ministry of Transport, stated that the Ministry had achieved positive results across all sectors during this period.
40% of the investment plan disbursed in the first six months
The disbursement of public investment capital in the first six months reached VND 25,500 billion, accounting for 40% of the planned capital. The Ministry of Transport commenced construction on seven road projects and one railway project, and completed four projects, including two highway projects invested under the BOT form: Cam Lam – Vinh Hao and Dien Chau – Bai Vot.
With the completion of these projects, all 11 North-South Expressway projects in the Eastern phase for the 2017-2020 period have been put into operation, reducing travel time from Hanoi to Vinh and from Ho Chi Minh City to Nha Trang. This brings the total length of expressways in the country to over 2,000 kilometers. Projects in the fields of railways and aviation are also on track to meet their deadlines.
To improve state management, the Ministry of Transport has completed the connection and data sharing between its Public Service Portal and 50 out of 63 local Public Service Portals. It has also substantially finished the foundational database for roads, railways, and inland waterways.
Since the beginning of the year, vehicle inspection centers have maintained a normal operating status, with no reports of congestion.
Expediting the construction of rest stops
According to Mr. Lam Van Hoang, Director of the Vietnam Expressway Corporation, following the Government and Prime Minister’s directives, temporary rest stops have been established on newly opened expressway routes in the initial months. These rest stops are managed by Project Management Boards and aim to meet the immediate needs of travelers.
As of now, five out of eight rest stops belonging to four expressway projects, including Mai Son-National Highway 45, Vinh Hao-Phan Thiet, Phan Thiet-Dau Giay, and Cam Lam-Vinh Hao, have selected investors. The Vietnam Expressway Corporation expects that by early July 2024, the investor selection process will be completed, leading to contract negotiations and signings.
“In parallel with contract negotiations, the relevant parties will coordinate with investors to finalize the necessary procedures and commence construction of the rest stops in a ‘run and queue’ manner,” said Mr. Lam Van Hoang. He also urged local authorities to cooperate closely in land clearance to ensure that essential rest stop facilities have construction sites.
For the remaining rest stops on the North-South Expressway in the East, the Vietnam Expressway Corporation is coordinating with relevant parties to finalize procedures and issue tender documents. This ensures that the rest stops will be operational when the expressway is completed.
Unifying solutions for eight problematic BOT stations
Regarding the proposal to address difficulties and problems in transportation BOT projects, Mr. Lam Van Hoang stated that in July 2024, the Vietnam Expressway Corporation would work with three localities to finalize reports for three BOT projects.
Additionally, the Corporation will advise the Ministry of Transport’s leadership in negotiating with investors and banks to unify solutions and determine the level of sharing among parties for the eight projects under the Ministry’s management.
Based on this, the Vietnam Expressway Corporation will consolidate the proposal and report it to the Party Committee of the Ministry of Transport for approval before submitting it to the Standing Committee of the Government in early August 2024. The goal is to submit it to the Politburo for approval in time for the 8th session of the National Assembly (opening in October 2024).
The Vietnam Expressway Corporation requested that the former Project Management Boards, which were assigned as investors, assign leaders and project officers to coordinate closely with the Corporation during the negotiation and solution finalization process. The Corporation also requested cooperation from relevant departments and units within the Ministry.
Strengthening coordination with localities in expressway construction
Given that expressway projects often span multiple provinces and cities, the Director of the Vietnam Expressway Corporation requested that localities proactively coordinate closely regarding technical requirements, norms, and prices, as well as related procedures, to ensure uniformity and synchronization during implementation.
“In the past, coordination between localities in managing construction material sources has not been optimal. Therefore, localities need to proactively collaborate to address difficulties and obstacles related to construction materials. They should also promptly report to the Prime Minister, Deputy Prime Minister, and the National Steering Committee for guidance and support from relevant ministries and sectors,” he added.
Moreover, based on on-site inspections of ongoing expressway projects, some local investors have been found to have thin management apparatuses with uneven capacities. The Director suggested that localities strengthen and streamline their apparatuses to enhance project management capabilities.
For projects in the preparation phase, the Vietnam Expressway Corporation requested localities to coordinate closely with the Ministry of Planning and Investment to expedite the progress of project appraisal and approval. Simultaneously, they should proactively prepare tender documents and draft contracts so that investor and contractor selection processes can be initiated immediately after project approval, meeting the construction commencement deadlines.
For projects with multiple consulting units, the Corporation requested that investors assign a capable and experienced consulting unit to take the lead and be primarily responsible for ensuring the compatibility and uniformity of technical issues related to surveys and designs for the entire project.
Deputy Minister of Transport, Mr. Nguyen Danh Huy, acknowledged the Minister of Transport’s resolute leadership and his requirement for investors to ensure the synchronous completion of all related items, including rest stops, intelligent transportation systems (ITS), and non-stop toll collection systems (ETC), by the time the expressways are completed.
“Project Management Boards must review and address any remaining site clearance issues for rest stops. It is unacceptable for investors to be selected and funds to be available, but there is no construction site due to land clearance problems,” the Deputy Minister emphasized.
Some expressway projects completed ahead of schedule by up to eight months
Speaking at the conference, Minister of Transport Nguyen Van Thang appreciated the efforts and achievements of the transport sector in the first six months of 2024, despite numerous challenges and difficulties. He highlighted the resolution of prolonged difficulties, especially in sea sand exploitation procedures, and the potential for some North-South Expressway components to be completed three to six months ahead of schedule, or even eight months earlier.
The Minister also noted the commencement of the last two projects on the Ho Chi Minh Road, which concretizes the goal of completing the entire route by 2025. He acknowledged the Ministry of Transport’s continued position as one of the ministries with high disbursement rates for public investment capital in the country.
Regarding institutional building and completion, the Minister mentioned breakthroughs such as the passage of the Road Law at the 7th session of the National Assembly. This law contributes to enhancing state management efficiency, reducing administrative procedures, promoting decentralization, and removing obstacles for businesses.
Recognizing the significant tasks ahead for the transport sector in the remaining months of 2024, the Minister of Transport requested the Department of Legal Affairs to coordinate with relevant agencies and promptly build and complete documents detailing the implementation of the Road Law and the Law on Road Traffic Order and Safety. Specifically, he mentioned the electronic payment decree for road transport, the toll collection decree for expressways, and the toll collection decree for roads based on vehicle heads, with a deadline of August 15, 2024.
The Minister emphasized the importance of ensuring that decrees and circulars are ready for implementation as soon as the laws take effect. He also urged swift action to implement the decentralization of national highway management to provinces and cities as soon as the Road Law comes into force.
The Power of Lizen: Consistently Winning Massive Bids
Lizen has achieved a significant milestone by successfully deploying and implementing major high-speed construction projects in 2023. The company’s revenue has reached 2,030.5 billion VND, which is twice the amount compared to 2022. However, the post-tax profit has reached its lowest point in the past 6 years, dropping down to only 118.3 billion VND.
Three Economic Growth Scenarios for Ho Chi Minh City in Q1 2024
At the socio-economic meeting reviewing the results of January and setting the goals for February 2024, held this morning (1/2), the Ho Chi Minh City Institute for Research and Development has presented three economic growth scenarios for the first quarter of Ho Chi Minh City.
Maximize highway speed to 90 km/hr
The Ministry of Transport (MoT) has recently issued a communication to relevant units regarding the adjustment of operating speeds for divided-investment expressways designed with 4 motorized vehicle lanes and a median barrier (2 lanes for each direction).
