Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway

Vietnam’s Son Hai Group is seeking Prime Minister Pham Minh Chinh's approval to invest in the expansion of a 263-kilometer stretch of the eastern section of the North-South Expressway.

The 263-kilometer stretch runs from Hoai Nhon township in Binh Dinh province to the resort town of Nha Trang in Khanh Hoa province, both in Vietnam’s south-central region.

In a document sent to the Prime Minister, Son Hai proposed being appointed as lead investor, partnering with capable investors, to fully develop segments on the route.

The segments comprise the Hoai Nhon-Quy Nhon (Binh Dinh province), Quy Nhon-Chi Thanh (Phu Yen province, south-central Vietnam), Chi Thanh-Van Phong (Khanh Hoa province), and Van Phong-Nha Trang. The segments would be carried out under a public-private partnership (PPP) model.

The company has committed to fully securing 100% of the funding, through a mix of equity and legally mobilized capital, without tapping state funds. It plans to self-execute the project within 24 months and offer a 10-year quality warranty.

The proposal is in line with Resolution 68 of the Politburo - Vietnam’s top decision-making body - on private sector development, while easing pressure on the state budget and creating jobs for the company’s workforce, Son Hai chairman Nguyen Viet Hai said.

Son Hai has invested in and built more than 185 kilometers of expressways nationwide, including the Nha Trang-Cam Lam (Khanh Hoa) and La Son (the central city of Hue)-Tuy Loan (Da Nang, central Vietnam) segments, both developed under the PPP model.

In late May, Deo Ca Group JSC, known as Vietnam’s “tunnel king” for its role in transport infrastructure, also proposed investment in expanding the eastern section of the North-South Expressway to six lanes, using the PPP model.

The group said it aims to partner with other domestic enterprises to undertake the expansion without relying on state budget funds.

Calculations show that expanding the entire 1,100-km eastern section of the North-South Expressway via PPP could save up to VND152 trillion ($5.85 billion) in state funding.

To date, around 1,375 kilometers of the expressway had been developed in phases with two to four lanes. Of this, 654 km - completed under the 2017–2020 phase - is already in operation, while 721 km in the 2021-2025 phase is expected to be completed by 2025-2026.

However, limitations in the existing two- or four-lane designs have led to traffic safety risks, congestion, and inadequate capacity to meet rising transport demand, especially as economic growth targets increased.

Given this, the government has directed the Ministry of Construction to study a plan to widen the entire route to six lanes, aiming to kick off several component projects by December 2025.

Deputy Prime Minister Tran Hong Ha has asked Ministry of Construction to collect feedback from other relevant ministries for the plan. The plan is to pursue the PPP or a combination of asset concession and upgrade under the national roadmap, excluding public investment.

Deputy Prime Minister Tran Hong Ha has asked the ministry to gather input from other relevant ministries on the plan, which will be carried out via PPP or a mix of asset concession and upgrades under the national roadmap, excluding public investment.

The ministry will assess investor interest, compare proposed models, and recommend the most effective option to the Prime Minister by June 5.