HCMC-Long Thanh-Dau Giay Expressway, part of the North-South expressway project, has been completed. Tolls on eight sections of the project are likely to be collected for at least 24 years. (Photo: Le Anh)
According to a notification from the Ministry of Transport sent to enterprises that want to execute the project, the capital recovery period is calculated based on the toll levels and volume of traffic through these sections.
The toll was set at VND1,500 per kilometer and will be raised every three years to the maximum level of VND3,400 per kilometer.
Specifically, the toll will be hiked to VND1,700 in the 2024-2026 period and VND1,900 in the 2027-2029 period. It will later increase by VND300 per kilometer every three years until 2041 but will be VND3,400 in the 2042-2044 period.
According to the Ministry of Transport, if the toll is kept unchanged at VND1,500, the revenue will not be enough to offset investors’ costs, which will hinder investor attraction.
Meanwhile, the toll of VND2,500 per kilometer is attractive to investors but may reduce the number of road users in this section.
According to the ministry’s calculations, with the toll of VND1,500-3,400, investors can earn profits of 11.7%.
At a conference calling for investment in the North-South expressway project held in mid-May, Nguyen Danh Huy, director of the Public-Private Partnership Investment Project Management Department, under the Ministry of Transport, noted that in case of a reduction in the number of vehicles passing through the expressway sections, the competent agencies would review the toll collection plan to share the risk with investors.
In response to foreign investors’ questions on the profit rate in U.S. dollar and price escalation, a representative of the State Bank of Vietnam stated that all transactions in Vietnam must be conducted in Vietnamese dong and the profit rate of 11.7% is appropriate.
Vietnam has regulations in place to minimize exchange rate risks for foreign investors. In addition, the Vietnamese Government consistently pursues macroeconomic stability so that foreign firms can effectively do business in the country.
The 2,100-kilometer North-South expressway project will run through 32 cities and provinces and connect the four key economic zones, urban areas, seaports and economic hubs.
In the first phase, 654 kilometers of the expressway, divided into 11 subprojects, will be built with a total investment of over VND118.7 trillion, of which VND55 trillion will come from the State budget and over VND63.7 trillion from the private sector.
The Ministry of Transport has approved the feasibility studies for these 11 subprojects, including eight public-private partnership subprojects and three others receiving State funding.
