Out-Law News | 29 Apr 2021 | 8:42 am | 1 min. read
A transport master plan for Vietnam has been proposed that will cost between VND1,000 trillion and 1,500tn ($43 billion -$65bn) between now and 2030.
The plan involves upgrades to road, rail, inland waterway, sea and air transport infrastructure. The Transport Department and Strategy Institute has proposed three options, according to a report.
The first proposal will cost between VND900tn and VND1,000tn ($39bn-$43bn) and include the construction of 5,000 kilometres of expressway, along with the completion of Long Thanh international airport, a deep water port, and two highspeed routes between Hanoi and Vinh City.
The second proposal will cost VND1,000tn-VND1,200tn ($43bn-$53bn) and include the construction of 5,000km of expressway, the construction of two high-speed railways, two railway sections, and construction and expansion of some airports.
The third proposal is expected to cost VND1,4000tn-VND1,500tn ($60bn-$65bn). It includes the measures in the first proposal with additional work including a series of railways in different parts across Vietnam.
In March Vietnam announced plans to have 5,000km of expressway roads by 2030 and over 9,000km by 2050.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “Improving connectivity is an important development for Vietnam’s growing economy. The magnitude of the capital investment required suggests there will be the opportunity and the need for both domestic and international developers and funders. In this context, the enactment of the Public-Private Partnerships (PPP) Law that came into force earlier this year will likely set the framework for most if not all of the more complex of these transportation projects.”
“However, whilst the new law clearly indicates an awareness of the need for a robust regulatory framework, it remains to be seen if the risk sharing mechanisms will be sufficiently equitable as between the public and private sectors to attract the required debt and capital. The implementing regulations that will flow from the PPP Law as well as the proposed template documents for these projects will provide the answer to the question,” he said.