
Why Private Money Struggles to Fund Vietnam’s $35 Billion Expressway Plan
Vì sao vốn tư nhân khó rót vào kế hoạch cao tốc 35 tỷ USD của Việt Nam
Source: Vietnamnet
Vietnam is preparing 29 expressway projects for 2026‑2030, a plan that could reshape transport across the country. Understanding why private money is hard to attract helps explain the challenges of such a massive infrastructure push.
The Ministry of Construction says the 29 projects will require almost VND 923 trillion (about $35 billion) in capital. This huge sum must be raised through public‑private partnerships, putting pressure on financing systems.
Private investors worry about decades‑long payback, uncertain toll income and policy risk. Moreover, about 75‑80% of bank deposits are short‑term, while expressways need decades to earn returns.
Tran Hoai Nam, deputy director of VietinBank’s corporate banking division, warned that revenue can fall short when parallel roads open, when toll rates are not adjusted on schedule, or when government budget support is delayed. Such shortfalls threaten the financial viability of PPP expressways.
Nguyen Viet Long, deputy general director of Ernst & Young, argues that Vietnam must broaden its funding mix. He suggests using project bonds, credit from EPC contractors, pension funds and dedicated infrastructure investment funds to bring in long‑term capital.
In short, without diversified, long‑term financing and reliable revenue forecasts, the $35 billion expressway programme may stall. The ability to share risk and secure stable funding will decide whether the roads move from paper to pavement.
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