Vietnam’s expressway giant VEC lands huge state capital boost

State-owned expressway developer Vietnam Expressway Corporation (VEC) has seen its charter capital rise by over VND37.5 trillion to VND38.62 trillion ($1.48 billion) this year, as per a decision signed by Minister of Finance Nguyen Van Thang.

Of the additional capital, VND36.69 trillion ($1.4 billion) will come from state budget, while VND814.16 billion ($31.15 million) is sourced from the company's development investment fund.

In June, VEC has been approved by Prime Minister Pham Minh Chinh to have its charter capital increase by VND38.25 trillion from the 2023 level to nearly VND39.4 trillion ($1.5 billion) for the 2024-2026 period.

Of which, VND1.56 trillion ($59.68 million) will come from the company's development investment fund and VND36.7 trillion ($1.4 billion) from state budget allocations.

The new government funding aims to support five ongoing expressway projects under VEC's management.

Prior to the capital increase, VEC's charter capital stood at only VND1.12 trillion ($42.85 million), while the total investment for the expressway projects under its management exceeded VND108 trillion ($4.13 billion).

The capital injection enables VEC to implement its business and development plans through 2025, and its strategy through 2030, with a vision until 2035.

Specifically, the capital boost will allow VEC to accelerate the Ben Luc-Long Thanh Expressway project running from Tay Ninh province to Dong Nai province, southern Vietnam, ensuring its completion this year.

The company will also finalize adjustment procedures to complete remaining components of the Da Nang-Quang Ngai Expressway within the same year.

In addition, VEC will move forward with the expansion plans for several other key expressways.

Notably, the company will explore opportunities to invest in the expansion of certain sections of the North–South Expressway and develop new expressway routes that remain unimplemented under the national master plan.

VEC officially began operations on October 6, 2004, under the then Ministry of Transport. On June 17, 2010, the transport ministry issued a decision to convert the Vietnam Expressway Investment and Development Company into Vietnam Expressway Corporation (VEC) to enhance its position, capacity, and responsibilities.

The government’s goal is to develop VEC into a leading, professional developer and a main player for mobilizing both domestic and international capital through various forms, to develop the national expressway system through a model of self-construction, self-operation, and self-financing.

In 2024, VEC recorded net revenue of over VND6.23 trillion ($238.44 million), a 22.7% increase from 2023. The company's gross profit reached more than VND3.6 trillion ($137.78 million), up 28%.