'Tunnel king' Deo Ca proposes expanding North-South Expressway under PPP model

Deo Ca Group JSC, known as Vietnam’s “tunnel king” for its role in transport infrastructure, has proposed expanding the eastern section of the North-South Expressway to six lanes, using the public-private partnership (PPP) model.

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

In a recent proposal submitted to the Prime Minister, Deo Ca highlighted the government’s strong efforts in developing the eastern section of the North-South Expressway to support socio-economic growth, ensure national security, and improve connectivity among major economic and political centers.

To date, around 1,375 kilometers of the expressway has 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.

According to CEO Nguyen Quang Huy, Deo Ca Group has long been a proactive force in PPP infrastructure development, even when policies were unclear or incomplete.

"With the spirit and responsibility of implementing the Politburo’s Resolution 68 on private economy development, we believe that businesses should not wait for barriers to be lifted. Instead, they must engage from the beginning to help realize major, unprecedented policies of the Party and the State," Huy said.

In line with this philosophy, Deo Ca has proposed that the Prime Minister convene a meeting with relevant ministries to consider assigning the group to coordinate with the Ministry of Construction in selecting a suitable expressway segment for phase 1 of the expansion, under a PPP framework.

The group commits to fully fund the project through lawful domestic sources - without using the state budget - and to recover costs through toll collection and revenue-balancing mechanisms, while also contributing to the state budget throughout the project lifecycle.

Deo Ca also proposed the government explore a hybrid investment model that combines public funding with PPP capital to accelerate implementation and reduce reliance on public finances.

The group suggested that the Ministry of Construction and the Ministry of Finance work together on a framework that enables private sector leadership in such projects.

To further facilitate the project, Deo Ca asks for special mechanisms and policies, including fast-tracked land clearance, resettlement, and compensation; designated waste disposal and mineral extraction sites for construction; direct appointment of investors; temporary or permanent conversion of forest land for project use.

During the project, Deo Ca will also assume responsibility for the operation and toll collection of the existing expressway infrastructure while construction is underway, ensuring secure and safe traffic flow.

“The PPP model will reduce pressure on the state budget, especially important as public funds must be allocated to other key development goals, and ensure effective management of state-owned assets,” said Huy.

Deo Ca estimates that expanding just five operational expressway segments that are currently not tolled - including Mai Son-NH45, NH45-Nghi Son, Nghi Son-Dien Chau, Vinh Hao-Phan Thiet, and Phan Thiet-Dau Giay - under a PPP model could save the state over VND37 trillion ($1.42 billion).

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. However, to shorten implementation time, Deo Ca recommends a blended investment approach, combining PPP and public capital.

With over 300 kilometers of expressways invested under PPP and contributions to over 500 kilometers of national expressways, Deo Ca believes that combining road expansion with toll collection will optimize capital use and improve revenue transparency, thus confirming the feasibility and effectiveness of the proposed financial plan.

If appointed as the project investor, Deo Ca - leading the consortium - commits to initiate construction in December 2025.