The Ministry of Construction explains the reasons for removing difficulties for traffic BOT

Xuyên Đông |

The Ministry of Construction is seeking opinions on a draft Decree detailing the removal of obstacles for the transport BOT project.

Explaining the necessity of this Decree, the Ministry of Construction said that at the 13th National Congress of the Party, it was determined: "Continuing to perfect the synchronous and modern economic and social infrastructure system, focusing on prioritizing the development of key infrastructure in terms of transportation, energy, information technology, large cities, infrastructure to respond to climate change..." as one of the three strategic breakthroughs in the period of 2021 - 2030, with the main task and solution "Improving institutions, promoting public-private cooperation to mobilize social resources in developing infrastructure and providing public services. Minimize investment resources, diversify forms of mobilization and use of resources, especially non-state investment resources; encourage and attract non-budgetary investment to develop infrastructure, especially transportation".

The Ministry of Construction also cited the article: "Dveloping the private economy - a lever for a prosperous Vietnam" dated March 21, 2025 by General Secretary To Lam.

It clearly states key solutions in the breakthrough momentum and the rising era of Vietnamese private enterprises, including protection of contract enforcement by private enterprises: A transparent, effective and efficient contract enforcement system, helping businesses feel secure in trade and investment transactions, minimizing legal risks, and minimizing sudden policy changes causing losses to businesses.

In practice, the Ministry of Construction said that in the context of difficult state capital sources, implementing the Resolution of the 11th National Party Congress, Resolution No. 13-NQ/TW dated January 16, 2012 of the Central Executive Committee, as of before 2020 (the time the Law on Investment under the Public-private Partnership (PPP Law) was issued nationwide, about 318,857 billion VND has been mobilized to invest in 140 construction investment projects under the Public-private partnership method, the type of Construction - Business - Transfer contract (hereinafter referred to as the transport BOT project).

The projects have been put into operation on target, promoting efficiency, reducing transportation costs, promoting socio-economic development, reducing congestion, traffic accidents, improving competitiveness for the economy...

However, before the promulgation of the PPP Law, the law on investment under the form of BOT contracts still had some limitations. During the contract implementation process, policies must be adjusted to suit practical requirements, leading to problems in some transport BOT projects.

Implementing the conclusion of the National Assembly Standing Committee and the direction of the Government Standing Committee, the Ministry of Construction (formerly the Ministry of Transport) has coordinated with localities to comprehensively assess the difficulties and problems of transport BOT projects nationwide.

Of the total 140 BOT projects, a list of 11 projects with qualitative problems and some potential problems has been identified.

On that basis, the Ministry of Construction has coordinated with the State Bank of Vietnam and related localities, negotiated with Investors and project enterprises and agreed on 02 groups of solutions to remove obstacles on the basis of ensuring the principle of "harmonious benefits, shared risks" including: The State shares to continue implementing the contract; The State pays compensation costs, terminates the contract ahead of schedule.

Based on the provisions of the PPP Law, the conclusions of the National Assembly Standing Committee, the direction of the Government Standing Committee, the results of work and negotiations with investors, project enterprises and credit banks, the Ministry of Construction has compiled and completed the draft Decree dossier.

Based on some of the above, the Ministry of Construction believes that it is necessary for the Government to issue a Decree "detailed regulations on removing obstacles for BOT transport projects".

Xuyên Đông
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