On June 12, the Minister of Construction presented a proposal to the National Assembly to approve the investment in Ho Chi Minh City’s Ring Road 4 project.

The total estimated investment is VND 120.412 trillion (approx. USD 4.73 billion), including VND 69.78 trillion (approx. USD 2.74 billion) from the state budget and VND 50.632 trillion (approx. USD 1.99 billion) from private investors.

According to the government’s proposal, the southern key economic region is currently facing bottlenecks due to the underdeveloped transport infrastructure, which fails to meet rising demand. High logistics costs and frequent traffic congestion, especially in Ho Chi Minh City, underline the urgency of expanding the city’s transport network. Ring Road 4 is a crucial component of this development effort.

The project is expected to serve transportation needs across Southeast, South Central, Southwest, and Central Highlands regions, and enhance connectivity with Cambodia.

Minister of Construction Tran Hong Minh said the road will begin at the intersection of Toc Tien - Chau Pha (interchange with the Bien Hoa - Vung Tau Expressway and DT.992) and end at the North-South axis road near Hiep Phuoc Port in Nha Be District, Ho Chi Minh City.

The total planned route spans 207.26 km, with approximately 159.31 km to be developed under the current phase. This includes 18.23 km in Ba Ria - Vung Tau, 46.08 km in Dong Nai, 20.5 km in Ho Chi Minh City, and 74.5 km in Long An. A 47.95 km section in Binh Duong Province has already been approved by the provincial People’s Council and is being developed independently.

Phase one of the project will involve a four-lane expressway with a design speed of 100 km/h. Upon completion, the expressway will be expanded to eight lanes while maintaining the 100 km/h design speed. The preliminary cost for phase one is estimated at VND 120.412 trillion (approx. USD 4.73 billion).

Funding will come from both state and private sources. The state budget portion of VND 69.78 trillion includes VND 29.687 trillion from central funds and VND 40.092 trillion from local budgets. Private investors will contribute approximately VND 50.632 trillion (USD 1.99 billion).

Project preparation will take place between 2024 and 2025. Land clearance, compensation, and resettlement are scheduled for 2025-2026. Construction bidding and investor selection will also occur in 2026, with construction expected from 2026 to 2029 and completion targeted for late 2028.

Presenting the review, Chairman of the Economic and Financial Committee Phan Van Mai confirmed the committee’s support for the Ring Road 4 project.

The government has proposed special mechanisms and policies for this project, including exemption from assessing funding sources and budget balancing capacity, as typically required under the Law on Public Investment and the Law on Public-Private Partnership (PPP).

However, Regulation No. 189 by the Politburo and Guideline No. 63 by the Central Steering Committee on anti-corruption highlight that failing to determine funding sources and budget balance for investment decisions constitutes wasteful and corrupt use of public funds.

Thus, the Economic and Financial Committee recommends that the government supplement the project dossier with detailed assessments of funding sources and the feasibility of capital allocation in accordance with the Law on Public Investment and the PPP Law.

Tran Thuong