The Vietnamese government is preparing to appoint CII Bridges and Roads Investment (CII B&R) as the developer of a US$1.5bn toll road expansion project aimed at improving connectivity and reducing congestion in southern Vietnam.
The Ho Chi Minh City-Trung Luong-My Thuan Expressway Expansion Project will cover approximately 96km and span three provinces, forming part of the country’s North-South expressway corridor. Construction is expected to begin as early as September.
CII B&R is a subsidiary of Vietnamese infrastructure developer CII and a 45% affiliate of Metro Pacific Tollways Corporation (MPTC), a toll road operator based in the Philippines.
Vietnam’s Ministry of Transport is understood to have granted direct appointment rights to CII B&R, enabling the project to bypass the open bidding process and proceed under a fast-tracked delivery model.
“Our biggest priority is Phase 2 of the expressway… we do not need much capex this year, just enough to kick-start the project,” said Le Trung Hieu, director of capital management at CII.
The project, classified as a special-grade expressway, will expand the existing road to six lanes and is expected to significantly ease traffic on National Highway 1, which experiences regular congestion during peak periods. The route is a key economic lifeline connecting Ho Chi Minh City to the Mekong Delta.
The original Ho Chi Minh City-Trung Luong expressway opened in 2010 and was among Vietnam’s first major expressway investments, with early sections delivered under a Build-Operate-Transfer (BOT) model.
The expansion is expected to follow a similar public-private partnership structure, with long-term operational and maintenance responsibilities likely to remain with the appointed developer.
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According to financial disclosures, the scheme is expected to cost VND39.8trn (US$1.53bn), with funding structured as 15% equity and 85% debt, carrying an average annual interest rate of 10.75%.
Of the total budget, VND23.5trn (US$904m) has been allocated for construction and equipment, VND4.4trn (US$169m) for land clearance and VND4.8trn (US$185m) for interest during the build period.
Regional authorities have also acknowledged the importance of streamlining interprovincial coordination, especially for land acquisition and permitting.
The Vietnamese government’s proposed administrative merger of Ho Chi Minh City with the neighbouring provinces of Bà Rịa-Vũng Tàu and Bình Dương is seen as one way to ease bureaucratic challenges in delivering large-scale infrastructure.
The expansion represents MPTC’s largest project in Vietnam to date and aligns with the Vietnamese government’s goal of accelerating infrastructure development to support economic growth and regional integration.
The upgraded expressway is also expected to improve freight movement and commuter travel times between southern Vietnam’s urban centres and agricultural provinces.
MPTC currently operates toll roads in the Philippines and Indonesia and is positioning its Vietnam affiliate as a long-term partner for infrastructure delivery in Southeast Asia.
Further details on construction timelines, tolling models and operational partners are expected to be confirmed in the coming weeks.
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