The second facilities of Bach Mai and Viet Duc hospitals, part of a major public investment initiative with a combined value nearing USD 400 million, remain lifeless concrete structures after more than a decade of stalled development.

Despite an initial vision of 1,000 hospital beds per site and extensive budget allocations, the projects have yet to deliver on their intended public health impact - leaving behind an estimated USD 47 million in waste.

Approved by the Prime Minister and overseen by the Ministry of Health, the two projects - Bach Mai Hospital Branch 2 and Viet Duc Friendship Hospital Branch 2 - were launched with a total state budget of VND 9.958 trillion (approx. USD 398 million). Of this, VND 9 trillion (USD 360 million) came directly from the national budget.

Each project was designed to provide 1,000 hospital beds, with construction initially scheduled from 2014 to 2017. That timeline was extended multiple times: first to 2020, then to 2023, and most recently to the end of 2024.

Construction began in early 2015 and, by the end of 2020, the core buildings were mostly completed. However, due to unresolved issues, contractors halted work in January 2021. As of now, both facilities stand dormant.

Millions spent, little progress made

According to a report by the Government Inspectorate, the project preparation phase included 11 consultancy packages totaling VND 53.38 billion (approx. USD 2.14 million). Notably, two major consultancy packages from 2014 accounted for 85% of the total.

Site leveling alone cost VND 155.69 billion (USD 6.23 million). During the construction phase, 10 major packages (five per project) were awarded under hybrid contracts, totaling VND 5.73 trillion (USD 229 million). Two of these packages made up 76.6% of that amount.

In addition, there were 61 smaller consultancy packages worth VND 154.7 billion (USD 6.2 million). Project management costs reached VND 50 billion (USD 2 million). Bach Mai's branch also procured medical equipment through a separate contract valued at VND 51.4 billion (USD 2 million).

By December 21, 2022, the two projects had been allocated VND 9 trillion (USD 360 million) in national funds, with VND 5.082 trillion (USD 203 million) disbursed - only 56.47% of the planned amount.

The Bach Mai branch project had disbursed VND 2.575 trillion (USD 103 million) out of VND 4.5 trillion (57.2%), with accepted work totaling VND 2.061 trillion (USD 82.7 million). The Viet Duc branch project disbursed VND 2.507 trillion (USD 100.5 million), with accepted work at VND 1.674 trillion (USD 67.2 million).

Waste, depreciation, and potential legal violations

The halt in construction since January 2021 has triggered unexpected expenses. These include damage to partially completed structures, expired warranties on systems, and ongoing costs such as management, security, electricity, and bank guarantees. By December 31, 2024, these added costs are estimated at VND 253.6 billion (USD 10.2 million).

Depreciation losses are also significant. Under current regulations, depreciation over four years (2021–2024) on the main hospital buildings would have amounted to VND 217.18 billion (USD 8.7 million).

Had unused funds been deposited into commercial banks between 2021 and 2024, based on average short-term deposit interest rates, the state could have earned VND 309.19 billion (USD 12.4 million) in interest.

Furthermore, if one calculates interest on unused state funds based on the 5-year government bond rate (5% annually from 2017–2022), the opportunity cost in loan interest alone totals around VND 453.42 billion (USD 18.1 million).

The Government Inspectorate reviewed several major consultancy and construction packages using documents provided by the Ministry of Health and project owners. It identified violations in tendering and construction processes across multiple stages and has forwarded documentation to the Ministry of Public Security for further investigation.

This includes issues tied to four major consultancy packages (TV4/2014, TV5/2014, TVBM-04, TVVD-04) and extensive violations of bidding, construction, and related laws.

Whether the case warrants criminal prosecution or disciplinary action against individuals involved will be determined through the ongoing investigation.

T. Nhung