Vietnam Expressway Corporation receives in principle approval from PM to increase capital.
Prime Minister Nguyen Tan Dung has given in principle approval for the Vietnam Expressway Corporation (VEC) under the Ministry of Transport (MoT) to adjust its charter capital from its current VND1 trillion ($45 million) to VND72.6 trillion ($3.2 billion) by 2019. He also assigned MoT to work with the Ministry of Finance (MoF) on the specific process.
VEC was established in December 2004 and has been growing ever since. Its major completed projects include the Cau Gie - Ninh Binh Expressway, the Noi Bai - Lao Cai Expressway, and the Ho Chi Minh City - Long Thanh - Dau Giay Expressway. It is now constructing the Da Nang - Quang Ngai Expressway and the Ben Luc - Long Thanh Expressway and will build the Hanoi - Lang Son Expressway.
It recently announced plans to transfer five expressways as part of its equitization plan, as directed by MoT. In the near future it will establish a number of joint stock companies to transfer Cau Gie - Ninh Binh, Noi Bai - Lao Cai, Ho Chi Minh City - Long Thanh - Dau Giay, Da Nang - Quang Ngai, and Ben Luc - Long Thanh Expressways.
The five projects have total investment capital of up to VND125.5 trillion ($5.5 billion), of which VEC mobilized VND54 trillion ($2.4 billion) and received VND71.5 trillion ($3.2 billion) from the State budget.