The Ministry of Construction has proposed allocating approximately VND 14.223 trillion (around USD 562 million) from the 2024 central government’s revenue surplus and expenditure savings to resolve long-standing issues in 9 out of 11 struggling BOT (Build-Operate-Transfer) projects. The remaining two projects would be funded by local budgets.

The Ministry is seeking government approval to report to the National Assembly for a resolution to comprehensively address lingering problems in BOT projects launched before 2015.

Currently, Vietnam has 140 BOT infrastructure projects - 66 overseen by the central government and 74 by local authorities. Of these, 11 projects (eight under central management, three under local) are facing significant difficulties and require government intervention. The Ministry has categorized them into two groups.

Group 1: Direct state support to offset severe losses

The Ministry proposes providing around VND 8.482 trillion (USD 335 million) in state support to four projects with declining revenues and no potential for financial recovery:

Viet Tri – Ba Vi Bridge: VND 598 billion (USD 23.6 million), 41% of total investment
Thai Ha Bridge: VND 1.024 trillion (USD 40.4 million), 60% of total investment
Deo Ca Road Tunnel: VND 2.280 trillion (USD 90 million), 37% of total investment
Bac Giang – Lang Son Expressway: VND 4.6 trillion (USD 181 million), 38% of total investment
The Thai Ha Bridge received the highest support rate due to its location in Ly Nhan District, Ha Nam - a socioeconomically disadvantaged area. The Public–Private Partnership Law allows higher state contributions for such projects.

Group 2: State buyout and contract termination

The Ministry recommends allocating approximately VND 6.317 trillion (USD 249 million) to buy out and terminate contracts early for seven projects:

Thanh Hoa Bypass: VND 882 billion (USD 34.8 million)
Binh Loi Bridge: VND 571 billion (USD 22.6 million)
National Highway 91 upgrade: VND 1.278 trillion (USD 50.4 million)
Thai Nguyen – Cho Moi Road: VND 2.631 trillion (USD 103.8 million)
Ho Chi Minh Road through Dak Lak: VND 379 billion (USD 15 million)
An Hai Bridge: VND 33 billion (USD 1.3 million)
National Highway 39B (Thanh Ne town section): VND 543 billion (USD 21.4 million)

The Ministry clarified that the state support excludes any profits related to equity investments. Only part of the interest on project loans, if applicable, will be reimbursed.

From the proposed VND 14.223 trillion, funds will be drawn from the central government’s 2024 revenue surplus. Phu Yen and Thai Binh provinces are expected to cover approximately VND 576 billion (USD 22.6 million) from local budgets for the two projects under their jurisdiction.

Why state support is necessary

According to the Ministry, these projects require state intervention due to complex policy shifts and implementation challenges - such as toll station placement and changes in fee structures.

For instance, under earlier policies, investors in the National Highway 91B upgrade were allowed to set up two toll booths (T1 and T2) to recoup costs. However, because of the “open toll” model - where users pay fees even for short trips - public backlash forced one station to cease operation. As a result, the project has only achieved 35% of its expected cumulative revenue.

Furthermore, two parallel roads are currently being developed in Can Tho and are scheduled to open by 2025. These will likely divert traffic away from Highway 91B, further jeopardizing the financial viability of the BOT project.

The Ministry also acknowledged issues with certain toll booths being placed away from the actual project site - such as Bim Son and Bac Thang Long – Noi Bai stations. However, it clarified that such placements were legally approved at the time and complied with then-current regulations.

For example, in the case of the Deo Ca tunnel (including the Hai Van Tunnel expansion), the government allowed toll collection on the La Son – Tuy Loan route instead of providing direct budget support due to tight fiscal conditions.

N. Huyen