Đà Nẵng-Quảng Ngãi Expressway is built by the Việt Nam Express Corporation. VNA/VNS Photo

HÀ NỘI – The Việt Nam Expressway Corporation (VEC) has the capacity to maximise resources for expanding and investing in expressway projects after receiving additional funding.

According to the corporation’s leader, the National Assembly’s approval of additional capital worth VNĐ38.251 trillion (US$1.5 billion) to VEC’s charter capital in the 2024-2026 period represents a crucial opportunity for the corporation to leverage its strengths, enhance operational efficiency, undergo significant transformations and contribute to the country's sustainable development.

With the increase in charter capital, VEC now ranks among the top five out of 19 State-owned corporations and groups with the highest State-owned equity.

Additionally, its ownership oversight will be transferred from the Commission for the Management of State Capital at Enterprises to the Ministry of Finance.

VEC’s chief accountant, Hàn Mai Nga, said that the National Assembly’s approval of additional charter capital investment effectively "unleashes" mechanisms, allowing VEC to overcome longstanding financial constraints.

VEC started with a relatively low charter capital of just VNĐ1 trillion ($40 million) when it was established in 2004 under Decision No. 3033/QĐ-BGTVT by the Ministry of Transport, she said.

"After two rounds of capital increases, by 2021, VEC's charter capital stood at over VNĐ1.115 trillion ($45 million). Meanwhile, the total investment required for VEC’s five expressway projects has exceeded VNĐ108 trillion ($4.3 billion), with over VNĐ56 trillion ($2.2 billion) in loans. This has created significant challenges for the corporation in maintaining the required debt-to-equity ratio," Nga said.

This financial constraint limited VEC’s ability to mobilise investment capital, particularly in securing funds from financial institutions and banks for developing the expressway network and other business activities.

Facing these challenges, the Government, the Prime Minister and various ministries and agencies have made concerted efforts to enhance VEC's financial capacity.

However, the process of increasing charter capital faced multiple obstacles due to regulatory changes, making it difficult to classify the funding source within existing legal frameworks.

"The increase in charter capital provides the legal basis for recognising expressway assets, allowing VEC to properly account for these assets, resolve critical operational bottlenecks, unlock investment resources and drive business growth," she said.

Multiple expressways upgraded

To affirm its role as a key enterprise and a leading player in expressway development, the chairman of VEC’s Board of Members, Trương Việt Đông, said that the company will continue implementing its development strategy through 2030, with a vision to 2035.

This includes business and investment plans up to 2025 and a restructuring plan for the corporation until 2025.

Accordingly, VEC aims to promptly expand expressways under its management and operation, while completing some sections of the North-South Expressway to their full capacity.

The corporation is also prepared to invest in remaining expressway segments that are yet to be developed under the national planning framework.

This will contribute to national security, defence, economic development, and poverty alleviation, while targeting the management of 1,500 km of expressways nationwide by 2035.

Following the approval of additional capital for the 2024-2026 period, VEC will be well-positioned to maximise resource mobilisation, including financing from credit institutions, to expand existing expressways, invest in new projects and develop value-added services along expressway routes while ensuring progress, quality, and efficiency.

Regarding immediate business activities after the capital increase, Phạm Hồng Quang, General Director of VEC, said that the corporation is focusing all resources on expediting the completion and commissioning of the western and eastern sections of the Bến Lức - Long Thành Expressway project before April 30, 2025.

The project is expected to be fully operational by 2026.

VEC is also accelerating procedural adjustments to complete outstanding works on the Đà Nẵng - Quảng Ngãi Expressway within this year.

Additionally, the corporation is swiftly carying out road repairs and upgrading safety systems on expressways under its management and operation, including Nội Bài - Lào Cai, Cầu Giẽ - Ninh Bình, Đà Nẵng - Quảng Ngãi, and HCM City - Long Thành - Dầu Giây.

For the Nội Bài - Lào Cai Expressway, contractors are mobilising personnel and resources to simultaneously execute 11 repair packages by the end of this month.

"VEC is also preparing to launch expansion projects for the Yên Bái - Lào Cai section of the Nội Bài - Lào Cai Expressway and the Cầu Giẽ - Ninh Bình Expressway in the fourth quarter this year," said Quang.

Furthermore, VEC is developing plans for the comprehensive development of service areas and rest stops along the Đà Nẵng - Quảng Ngãi and Bến Lức - Long Thành expressways. It is also installing vehicle weight monitoring systems on expressways under its management. VNS