VIETNAM continues a strong development focus on transport infrastructure in the country acros airports, ports and roads/ highways sub-sectors. The increased connectivity is aimed to develop economic hubs across the country; and drive other infrastructure sectors such as urban developments, clean energy and WASH projects. Further, there are recent guidelines issued for PPPs specifically in education sector and similar PPP initiatives are being done in healthcare sector as well.
Read the latest developments in Infrastructure and PPPs in Vietnam in our Q3 2024 insight.
JULY 2024
VIETNAM PROPOSES USD 310 Mn AIRPORT PPP IN COASTAL CITY
Vietnam's government plans to develop an airport via the public -private partnership model in Nha Trang on the country’s east coast. The total cost of the project is of VND 7.9 Trn (USD 309 Mn). It will be located in Van Thang Commune in Van Ninh District, 65 km north of Nha Trang City, 101 km north of Cam Ranh International Airport, and 49 km south of Tuy Hoa airport in neighbouring Phu Yen Province. The airport will have an initial capacity of 1.5 million passengers a year.
It will meet level 4E design standards making it capable of handling large aircraft such as A350 and B787. It will be a level I military airport. The government has three options for the PPP development:
The first being the state supporting the site clearance while the private investor funds the construction.
The second is to have the private companies invest in key sections, including the construction of a passenger terminal and airport apron with the state financing the remaining items including the development of runways and taxiways.
The third option is to have the state support relocations and facilities ensuring flight options as well as part of the ground levelling work and the private investor funding the civil aviation facilities and other remaining items.
ADANI PLANS GREENFIELD PORT PROJECT IN VIETNAM
Adani Group aims to develop a port in Vietnam as a part of their expansion plans to develop infrastructure overseas and increase trade opportunities. Adani Ports and Special Economic Zone has obtained an “in-principle” approval from the Vietnamese government for a new greenfield development in Da Nang.
The project is at an early stage of planning and the total investment required has not been finalized but the development will have container terminals and multipurpose berths to handle different types of cargo coming into the port. This will be the fourth international port asset for the Adani group after Haifa in Israel, Colombo in Sri Lanka and the Port of Dar es Salaam in Tanzania.
Adani Ports is the largest port operator in India. It gets about 5% of its total volume from international operations, wants to increase the ratio to 10% by 2030. The company is looking at opportunities in the Middle East, Southeast Asia, East Africa, Bangladesh, Sri Lanka, Maldives, Vietnam and Cambodia as these are regions where trade is coming to India.
VIETNAM SEEKS FEEDBACK ON EDUCATION PPP GUIDELINES
The Vietnamese government is seeking public opinion on a draft circular guiding the implementation of Public-Private Partnership (PPP) projects in the education sector. This Draft Circular provides details on agency responsible for design appraisal, pre-feasibility study reports, feasibility study reports, methods and criteria for evaluating bids for investor selection and the form of contract for Build-Operate-Transfer (BOT) projects in the field of education and training.
The PPP project in the field of education and training is an investment project to provide public products and services through the implementation of one or a number of the following activities:
Investment in the construction
Operation and business of works and infrastructure systems
Material foundations and equipment for education and training activities
Renovating
Upgrading
Expanding
Modernizing
Operating and trading in existing facilities and infrastructure works
Operation and business of existing works and infrastructure systems.
The infrastructure facilities eligible for PPP mode may include classrooms, lecture halls, libraries, student dormitories, sports centres and multi-purpose buildings.
THE GOVERNMENT OF VIETNAM LAUNCHES A VND 1.77 Trn EXPRESSWAY
The Government of Vietnam has launched a 23.83-km road in Hung Yen province, which connects the Hanoi-Hai Phong and Cau Gie-Ninh Binh expressways. The four-lane road, built at a total cost of over VND 1.77 Trn (USD 69.63 Mn), allows vehicles to travel at a maximum speed of 80 kph.
It is aimed at increasing the exploitation of the two expressways and reducing transport pressure for Hanoi. Hung Yen provincial government is also working on the side roads with a total investment of over VND 1.4 Trn (USD 55 Mn), which are scheduled to complete by Q4 2024. The road, which shortens travel time between Hung Yen and Hanoi as well as regional localities, will create a new development space with new industrial and service areas, reducing the logistics cost for businesses.
VIETNAM LAYING TRACKS TO COMPLETE 1,541-KM HIGH-SPEED RAILWAY ROUTE by 2035
The Government of Vietnam has announced plans to complete track laying for a 1,514-km-long North-South high-speed railway (HSR) by 2035. The North-South High-speed Railway will pass through 20 provinces and cities:
North Region:
1. Hanoi
2. Ha Nam
3. Nam Dinh
4.Ninh Binh
Central Region:
5. Thanh Hoa
6. Nghe An
7. Ha Tinh
8. Quang Binh
9. Quang Tri
10. Thua Thien Hue
11. Danang
12.Quang Nam
13.Quang Ngai
14. Binh Dinh,
15. Phu Yen
16. Khanh Ho
17. Ninh Thuan
18. Binh Thuan
South Region:
19. Dong Nai
20. Ho Chi Minh City.
The route would start at the Ngoc Hoi Station in Hanoi and end at the Thu Thiem Station in HCMC. The express railway project would utilize smart, modern and digitalized management, ensuring suitable technology transfers and workforce development.
The Ministry of Transport (MoT) has explored three project scenarios, considering different designed speeds from 200 to 350 km/hr, and the route should serve passenger or cargo transportation exclusively or combine both. The project’s cost is expected to be between USD 67.3 Bn- USD 72 Bn.
HCM CITY PLANS TO BUILD THREE INTERNATIONAL PASSENGER TERMINALS TO BOOST TOURISM
Ho Chi Minh City plans to construct three international passenger terminals in the Can Gio coastal urban area, Mui Den Do, and Ben Nghe port as part of its efforts to develop waterway transport and attract tourists.
The terminal to be built in the Can Gio coastal urban area will be able to cater for ships of up to 100,000 GT (gross tonnage), the one in Mui Den Do can serve ships of up to 60,000 GT, and that in Ben Nghe port for ships of up to 30,000 GT. These terminals will be equipped with modern facilities and services, including dedicated docking areas, luxurious reception zones, dining, shopping, and entertainment services to enhance tourist experiences.
HCM City, with its 23km-long coastline and a dense network of rivers and canals, holds significant potential for developing eco-tourism and urban waterway tourism. The Department of Tourism estimated that cruise tourists spend an average of 100 USD per day, a significant source of revenue that remains fully untapped. The 80km Saigon River is the largest of its kind in the city, capable of accommodating large sea and tourist vessels and connecting the city with other localities in the southeastern and Mekong Delta regions, and Cambodia.
AUGUST 2024
VIETNAM APPROVES USD 360 MN HIGHWAY PPP
The Ministry of Transport has approved investment project to build the Dau Giay-Tan Phu expressway (phase 1) under the Public -Private Partnership (PPP) method with a total length of more than 60km.
The project has a starting point of Km0+000, at the intersection area with National Highway 1, connecting to the Ho Chi Minh City-Long Thanh-Dau Giay expressway, in the territory of Dau Giay town, Thong Nhat district, Dong Nai province. The end point is at Km60 + 243.83 (at the end of the intersection with National Highway 20), connecting with the Tan Phu-Bao Loc Expressway Construction Project (Lam Dong), in Phu Trung commune, Tan Phu district, Dong Nai province. The 60km project connecting Dau Giay town to Tan Phu district in Dong Nai province, will cost an estimated VND 9 Trn (USD 360 Mn).
The expressway will pass through four districts in Dong Nai Province:
Thong
Xuan Loc,
Dinh Quan, and
Tan Phu.
In phase 1, the project is invested to meet highway standards, with a scale of 4 lanes, and a roadbed width of 17m. In the complete phase, the expressway is invested on the scale of a 4-lane expressway, the width of the roadbed is 24.75m, and the design speed is 100km/h. The Ministry of Transport estimates the payback period of the project as around 18 years.
VIETNAM TO PROMOTE PPPs IN HEALTHCARE
The Vietnamese Government is working to promote Public-Private Partnerships (PPP) in the healthcare sector to improve the country's healthcare system and a draft circular guiding the implementation of PPP investment projects in healthcare has been issued by the government. The circular aims to address the challenges and shortcomings faced by both regulatory agencies and investors in the sector.
The draft circular provides guidance on certain aspects of PPP investment activities in the healthcare sector as stipulated in Clause 3, Article 93 of Decree No. 35/2021/ND-CP which details the enforcement of the law on PPP.
One of the key changes proposed in the draft circular is a reduction in the minimum investment threshold for PPP projects in healthcare. The health ministry has proposed reducing the minimum project threshold, from the current VND 100 Bn (USD 4.16 Mn), for PPP investments in healthcare. The new threshold is expected to be lowered to below VND 50 Bn (USD 20.10 Bn) making it easier for smaller projects to qualify for PPP financing.
The importance of ensuring equal access to public healthcare services for all citizens, regardless of their location or gender, requires that financial models used in PPP projects must be carefully designed to ensure affordability and fairness. The PPP model in the service sector could further encourage private sector contributions toward building a comprehensive, advanced and sustainable healthcare system.
HANOI METRO LINE 3 STARTS PASSENGER SERVICE
The new elevated section of Metro Line 3 in Hanoi has entered into revenue service. The new line, operated by Hanoi Metro Company (HMC) will be officially inaugurated by the end of 2024 and is currently open for free public trial. The first stage of the project covers 8.5 kilometres and includes eight stations on the elevated section. Once complete, the full line will extend to 12.5 kilometres with a total of 12 stations and enhance access for 1.6 Mn residents across six districts of Hanoi city. At full capacity, the integrated metro system is expected to carry more than 23,900 passengers per hour per direction.
The Metropolis trains for Hanoi Metro Line 3 have four cars, with wide doors to facilitate passenger flow. They include dedicated space for passengers with reduced mobility, and ergonomic and easy-to-grab bars. The trains are made with lightweight aluminium car bodies, reducing energy consumption and making it more sustainable. Furthermore, the train’s exterior and interior colour schemes take local Vietnamese inspiration and include motifs such as dragon fruit and the rice paddy field designs, which enhance cultural relevance and aesthetic appeal.
The Hanoi metro is one of Alstom's projects, which was designed and manufactured in France for international markets. The metro is a showcase of French industrial expertise. It involves six Alstom sites in France:
Valenciennes for the design and manufacture of the metros,
Ornans for the engines,
Le Creusot for the bogies,
Tarbes for the electrical cabinets and traction systems,
Saint-Ouen for the Urbalis 400 signalling solution and
Villeurbanne for the onboard computerised systems, passenger information and signalling equipment.
CONSTRUCTION ON THE THUAN AN SEA-CROSSING BRIDGE TO BE COMPLETED IN 2024
The construction of the Thuan An sea-crossing bridge in Thua Thien Hue Province, Vietnam is expected to be completed by the end of 2024. The structure is expected to open to traffic in April 2025. The bridge, which spans 2.36 km and is 20 meters wide with four lanes, will be the longest sea-crossing bridge in Vietnam.
The two tower pillars of the bridge, standing on piers T26 and T27, are expected to be completed by early September. The Thuan An sea gate overpass has reached nearly 60% of the contract value. The project, funded by VND 2.4 Trn (USD 101 Mn) of the state budget, aims to enhance transport links between the central coast’s sports and industrial parks and is expected to attract more investment in Thua Thien Hue. Once completed, the bridge will connect to the national coastal road, further improving regional connectivity.
SUPER ENERGY TO START OPERATIONS ON A 30 MW WIND POWER PLANT IN MEKONG DELTA BY 2025
Thailand-based Super Energy Corporation has announced plans to commence operations on a 30 MW wind power plant in the Mekong Delta province of Soc Trang in Vietnam by 2025. The project, known as the Cong Ly wind power plant, is being developed by Super Wind Energy Cong Ly Soc Trang JSC, a subsidiary of Super Energy.
The project, with an investment of USD 74.8 Mn, features a total of ten turbines: nine 3 MW turbines on land and one 3 MW turbine nearshore. The installation covers a land area of 57.7 hectares and a water area within three nautical miles of the mean lowest waterfront over multiple years.
The firm has installed 10 turbines and connected a 35-kV transmission line to the 35kV/220kV transformer station of Bac Lieu wind power plant. The transmission line is 4.9 kilometres long. The development of this wind power plant aligns with Vietnam’s Power Development Plan VIII (PDP VIII), which anticipates electricity sales reaching 335 Bn kWh by 2025, 505.2 Bn kWh by 2030, and up to 1,254.6 Bn kWh by 2050. The combined capacity of all power plants is expected to reach 59,318 MW by 2025 and 90,512 MW by 2030, with wind power contributing 18.5% of the total capacity.
VIETNAM’S NATIONAL EXPRESSWAY NETWORK TO BE EXPANDED BY OVER 9,200 KM BY 2050
The Government of Vietnam has announced plans to expand its national expressway network to over 9,200 km across 43 routes by 2050. This plan includes the addition of key expressways such as the Ca Mau–Dat Mui and Quang Ngai–Kon Tum routes, which will enhance regional connectivity and support economic growth, particularly in eco-tourism and conservation areas. The addition of two crucial expressways:
The Ca Mau - Dat Mui expressway, extending 90 km, is designed with four lanes and is slated for post-2030 investment. This new addition aims to cater to the increasing transport demands of the region, aligning with local development proposals.
The Quang Ngai - Kon Tum expressway, stretching 136 km with four lanes, is expected to commence investment before 2030. This route is intended to enhance the development prospects of local areas and the broader region, connecting key tourist spots in Kon Tum to the North-South Expressway.
The network will now encompass 43 routes covering approximately 9,234 km, marking an increase of about 220 km from the previous plan. This expansion includes an increase in the number of expressways in the northern region to 2,313 km, in the Central and Central Highlands to about 1,496 km, and in the southern region to approximately 1,380 km. The iconic North-South Expressway will see enhancements to its capacity, with plans to widen the lanes from 4-10 lanes to 6-12 lanes along its 2,063 km stretch from Lang.
SEPTEMBER 2024
The Government of Vietnam has announced plans that the construction works of the upcoming HCMC-Moc Bai expressway will be completed in 2027. The 51-km expressway project will be carried out in the form of build-operate-transfer (BOT) at a total cost of some VND 19.6 Trn (USD 781.6 Mn). The expressway will start at Ring Road 3 in HCM City’s Cu Chi district and end at National Highway No 22 in Tay Ninh province’s Ben Cau district. The project is funded by a combination of state capital and private investment, with investors expecting to recoup their investment within approximately 15 years before transferring the expressway to public authorities.
The project will feature four normal lanes and two emergency lanes during Phase 1, with plans to expand to six lanes following land clearance. The expressway will include five major intersections, notably one in HCMC’s Cu Chi District, which will feature overpasses and tunnels for improved traffic flow. Additionally, a railway line will run through certain intersections, further boosting transportation options.
MOT PROPOSES TO TRANSFORM RAIL INFRASTRUCTURE IN VIETNAM BY 2030
The Ministry of Transport (MoT) has proposed developing an express rail line connecting the country’s north and south, with a maximum speed of 350 km per hour and an estimated cost of around USD 70 Bn. The proposed North-South high-speed railway will have a total length of 1,541 kilometres and feature double tracks with a width of 1,435 millimetres and electrification to support the maximum speed of 350 km per hour. It will include 23 passenger carriages and five freight carriages.
The project aims to reduce travel time between Hanoi and HCMC to 5.5 hours. It will start at Ngoc Hoi Station in Hanoi and end at Thu Thiem Station in HCMC, passing through 20 provinces and cities. The MoT plans to prioritize the construction of the Hanoi–Vinh and HCMC–Nha Trang sections, totalling around 642 kilometres, with construction set to begin by the end of 2027. The section from Vinh to Nha Trang, covering approximately 899 kilometres, is expected to start construction before 2030, with the entire line scheduled for completion by 2035.
CME AND VISTA GLOBAL SIGN ROOFTOP SOLAR ENERGY AGREEMENT
CME Solar Investment and Vista Global, a subsidiary of Samsung C&T, have formed a joint venture (JV) to promote rooftop solar energy in Vietnam. The joint venture agreement marks a milestone in both parties' commitment to sustainable energy and supporting Vietnam's transition to a low-carbon economy. The partnership will be called CME-Vista and will aim to combine the expertise, resources, and technologies of both parties to accelerate the development of solar energy projects in Vietnam.
CME-Vista has established a robust foundation of financial and technical capabilities, primed to enhance the deployment of rooftop solar systems nationwide. By merging Vista Global and Samsung C&T’s advanced technical, and financial expertise with CME’s in-depth local knowledge of implementation, the partnership aims to deliver high-performance solar solutions that effectively address Vietnam’s increasing energy demands.
This agreement underscores Samsung C&T’s broader commitment to sustainability and environmental stewardship, actively contributing to global efforts to combat climate change and promote renewable energy. The partnership marks the beginning of a new chapter in Vietnam’s energy landscape, as CME and Samsung C&T join forces with a shared commitment to achieving net-zero emissions by 2050.
PLANS ANNOUNCED FOR INFRASTRUCTURE DEVELOPMENT IN QUANG NAM AND PHU YEN PROVINCES OF VIETNAM
The Provincial Governments of Quang Nam and Phu Yen in Vietnam have announced plans to develop infrastructure in the provinces to improve connectivity and stimulate economic growth. The plan’s projected costs are mounting from USD 43 Bn to USD 60 Bn by 2030 to construct thousands of kilometres of new expressways, high-speed rail routes, deepwater ports, and new international airports.
In Quang Nam, projects like the Tam Hiep – Nui Thanh Logistics Center aim to create a major transport hub linked to Chu Lai International Airport, making the province a logistics gateway to Laos. The upgrade of Chu Lai Airport is another key development, expected to enhance passenger and cargo capacity to support regional and international trade.
In Phu Yen, infrastructure investments focus on expanding its transport network and maritime facilities. A key project is the development of a specialised tuna port, which will boost the province’s tuna industry. Tuy Hoa Airport is set to be upgraded to handle increased passenger traffic, meanwhile, Bai Goc Seaport and Dong Hoa Logistics Center will enhance industrial and trade capabilities. These efforts align with Vietnam’s national strategy to bolster infrastructure and attract both local and foreign investment into key regions.
PV POWER TO BUILD ELECTRIC VEHICLE CHARGING STATIONS IN VIETNAM
Petro Vietnam Power Corporation (PV Power), a member of Petro Vietnam, has been cooperating with South Korea's EN Technologies Inc to develop an electric vehicle charging stations to promote clean energy and reduce environmental pollution.
The pilot station will cover 30-35 sq.m on Huynh Thuc Khang street, Hanoi, with two standing chargers offering 50-60 kW per charging port. The project cost is expected to cost around VND 1.8 Bn (USD 73. 16 Mn) with a combined capacity of 100-120 kW. PV Power will evaluate the station based on technology, operation, safety, customer assessment, and efficiency to make appropriate adjustments. It plans to develop 1,000 charging stations nationwide by 2035. This is also a step of PV Power in line with Petrovietnam's energy transition orientation.
List of Key Transactions - Q3 2024
Source: YOG INFRA analysis
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thank you. very synthetic.