VEC urged to accelerate restructuring efforts

Minister of Transport Dinh La Thang requested the Vietnam Expressway Corporation (VEC) complete its restructuring plans so the process can be concluded in 2015.

Restructuring the VEC’s organisational and operational model is urgent and a prerequisite for sound development in the future, he stressed. 

Founded 10 years ago, the VEC was expected to fund seven expressway projects, five of which are currently underway with a total capital of more than VND125.5 trillion (US$5.9 billion), according to General Director Mai Tuan Anh. 

The corporation drafted its restructuring plan in 2012 and one year later the Prime Minister approved capital restructuring for five VEC-invested projects, namely the Cau Gie-Ninh Binh, Noi Bai-Lao Cai, Ho Chi Minh City-Long Thanh-Dau Giay, Ben Luc-Long Thanh and Danang-Quang Ngai expressways. 

The restructuring process aims to improve the VEC’s operational capacity, business efficiency and competitiveness, Anh said. Together with the maximisation of funds for expressway development, restructuring would help improve the company’s financial capacity and ensure a stable financial structure in future. 

According to Nguyen Chien Thang, head of the Ministry of Transport’s Business Management Department, the VEC’s restructuring process has seen initial results, with equitisation being the only way for the highway developer to effectively manage its huge capital. 

Tran Van Lam, head of the ministry’s Personnel Organisation Department, said the restructuring plan needed to clarify the opportunities and challenges the corporation would face in the times ahead as well as areas to be reorganised. 

Minister Thang also asked the VEC to draw lessons from each project in order to maintain its position as a key investor in transport infrastructure development. 

To ensure the restructuring process stays on schedule, the corporation as a whole should be equitised at the same time as its various projects, he said, calling upon the VEC to clarify the proportions of State capital and private capital in its financial plans. 

The corporation should focus entirely on the projects already underway, ensuring quality and safety whilst avoiding waste and losses, he added.