Vietnam’s government will build 4,000 kilometres (km) expressway under the private-public partnership (PPP) model across the country by 2030 as part of the national expressway network.
According to Ministry of Transport (MoT)’s draft 10-year plan (2021-2030) development plan, the cost of the proposed projects is up to VND825 trillion ($35.75 billion).
Vietnam's prime minister Pham Minh Chinh called for balanced investment among regions especially in the Mekong Delta, North West, Central Highlands, South Central, and the major economic zones.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Vietnam is in much need for improved road connectivity, and the proposed PPP programme is to be welcomed. The new PPP Law came into force at the start of the year, and earlier this year, the implementing regulations pursuant to the PPP Law were issued. The broad framework is therefore largely in place for such PPP programmes to be implemented.”
“Concerns have been voiced amongst debt and equity providers on the robustness of the new PPP framework, for instance around such risk allocation issues as the government guarantees and early termination payments and the best way to tease out whether these concerns are material is to bring these opportunities to market,” he said.
“As we have seen in other countries, for instance in the Philippines, it may take a few attempts before a PPP contractual structure that accommodates the concerns of all stakeholders can be established. The sooner Vietnam is able to launch such opportunities into the market, the sooner it and the investor community will be able to know the financeability of such opportunities,” Yeap said.
In March Vietnam announced plans to have 5,000km of expressway roads by 2030 and over 9,000km by 2050.
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