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Vietnam’s transport ministry announced a transport infrastructure plan between April 2021 & 2030, estimated khổng lồ cost between US$43 billion & US$65 billion.

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An industrial retìm kiếm institute under the Ministry of Transport has developed three proposed options for implementation.The enactment of the new PPP law implemented in January 2021 is expected to play a key role in the completion of these infrastructure projects.

Vietnam’s transport ministry announced its transport infrastructure master plan between April 2021 và 2030, which is estimated khổng lồ cost between US$43 billion và US$65 billion.

Under the master plan, Vietphái nam will build thousands of kilometers of new expressways, high-speed rail routes, deepwater ports, and new international airports. The government hopes Vietphái nam can achieve sầu a cargo transportation capacity of 4.4 billion tons per year, và a road transport capathành phố capable khổng lồ move sầu 2.76 tons of cargo & 9.43 million passengers per year. 


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Vietnam giới is playing catch-up lớn supply adequate infrastructure to keep the economy growing quickly. Vietnam’s economy is structured around investments, manufacturing, and exports, whereby investments flow into specific areas with particular endowments such as a large supply of competitive sầu labor, following which value-added products are manufactured or processed before being exported. This is a similar development Model that propelled Singapore, Taiwan, và South Korea inkhổng lồ high-income nations.

Moreover, an important contributor to lớn the success of those three countries was their ability to transport infrastructure that could handle increasing trade volumes. As Vietnam giới looks to lớn increase its manufacturing capathành phố, it is crucial that its roads, airports, seaports, và rail connections can facilitate this increase.

Three proposals for the implementation of the master plan

The Development & Strategy Institute — an industrial retìm kiếm institute under the Ministry of Transport — has developed three proposed options for the implantation of the master plan.

First proposal

Under the first proposal, estimated khổng lồ cost between (US$39 billion and US$43 billion, roughly one percent of GDP), the government will construct a total of 5,000km of expressways, along with the completion of the Long Thanh International Airport, located in Dong Nai province. Once completed, this will be the biggest in Vietnam & could serve sầu 100 million passengers annually. It will eventually replace the heavily congested Ho Chi Minch City’s Tan Son Nhat International Airport.

The first proposal also involves the completion of the Lach Huyen Port, a deep-water port in the đô thị of Hai Phong. The port is one of the first public-private partnership (PPP) projects between Vietphái nam and Japan & will accommodate container ships between 4,000 20 feet equivalent (TEU) & 6,000 TEU, và the potential for 8,000 TEU.

Lastly, the first proposal includes the construction of two high-tốc độ railways between Hanoi & Vinch, và Ho Chi Minc City, và Nha Trang.

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Second proposal

The second proposal will cost between US$43.3 to lớn US$53.3 billion lớn implement và will also involve the construction of 5,000 km of expressways in Vietphái nam, completion of the two high-speed railways, in addition to completing two railway sections that liên kết to lớn the Lach Huyen Port, & lớn the Cai Mep container terminal.

The second proposal will also see the completion of Hanoi’s Noi Bai airport, the expansion of Ho Chi Minch City’s Tan Son Nhat airport, and the completion of the second phase of the Long Thanh khô airport. Other airports destined for expansion include the Dien Bien airport serving Dien Bien thành phố và Con Dao airport, which serves the tourist isl& of Con Dao.

In addition khổng lồ airport expansion, the second proposal focuses on dredging waterways between Hai Phong City và Phu Tho province & upgrading the Cho Gao Canal that links Ho Chi Minch City & the Mekong Delta.

Third proposal

The third proposal is expected to cost the most, estimated at between US$60 billion và US$65 billion. The proposal features many of the projects in the first proposal with additional railway lines in different parts across Vietnam.

New PPP. law khổng lồ set the framework for these transportation projects

The enactment of Vietnam’s new public-private partnership (PPP) law, which took effect in January 2021, will be at the center of the success of these complex projects.

Under the new PPP.. framework, investors engaged in the transportation, healthcare, education, transmission grid, và water sectors can receive sầu benefits ranging from a reduction in corporate income tax, credit tư vấn, and a reduction in land lease fees, among mỏi others.

To qualify, the project’s value must be at least VND 200 billion (US$6.2 million), except for education và healthcare projects where the value is half this amount. The equity capital contribution of private investors must be at least 15 percent of the total investment capital.

The new PPPhường law also implements a revenue-sharing scheme. If the PPP project revenue is greater than 125 percent of the revenue forecasted in the project’s financial mã sản phẩm, the state will receive 50 percent of the revenue in excess of the 125 percent threshold. If, however, revenues are less than 75 percent of the forecasted revenue, the state will nội dung 50 percent of the downside below the 75 percent threshold.

The government will provide investors with a guarantee of the availability of foreign currency to lớn fulfill their needs in respect to the project for activities such as the transfer of profits & capital transactions. Under the new PPP law, such guarantees are limited to 30 percent (previously 100 percent) of the projected revenue after project expenses.

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Further, investors committed to using domestic nội dung, contractors, materials, and goods will also be eligible for preferential treatment during the tender process.