Report on Adjusting Investment Policies for Key Transport Projects in Vinh Phuc Area

On the afternoon of April 15, Mr. Quach Tat Liem — Provincial Party Committee Member and Vice Chairman of the Provincial People’s Committee — chaired a meeting to hear the Vinh Phuc Area Project Management Board (PMB) report on adjusting the investment policies for five key transport projects in the locality. Attendees included leaders of relevant departments, sectors, and local wards and communes.

Vice Chairman Quach Tat Liem delivers the concluding remarks at the conference.

According to the Vinh Phuc Area PMB, most projects proposed for adjustment face a common challenge: an increase in total investment. This is primarily driven by actual site clearance and compensation costs being significantly higher than initial estimates (due to changes in land unit prices and surveyed areas). Additionally, some projects were approved long ago but are only now being implemented, leading to surged construction and relocation costs.

Vice Chairman Quach Tat Liem presides over the conference.

Specifically, regarding Provincial Road (DT) 310C (the section from QL2C to QL2B) in Tam Duong commune, construction has reached 60.34% completion, with disbursement hitting 96.9% of the allocated capital. Due to a sharp rise in specific land prices (garden land increased by 9–10 times) and the misclassification of residential land as agricultural land, the total investment has increased by 115.263 billion VND (bringing the new total to 553.3 billion VND).

The DT.309B project (section from QL2B to DT.309) is currently 47.6% complete in construction, with site clearance reaching 70%. It faces a similar situation where actual compensation unit prices have soared 5–10 times compared to the 2019 project planning stage, leading to an investment increase of 64.384 billion VND (new total: 254.9 billion VND).

For Ring Road 3 (Yen Lac – Binh Duong section), 92.3% of the construction volume has been completed. However, adjustments to fully integrate the QL2C and TL305 intersections according to the master plan (41m cross-section) have led to increased costs in both site clearance and construction/installation, totaling an additional 16.6 billion VND.

Meanwhile, Provincial Road (DT) 307 (from Lap Thach Town to Lien Son Bridge) has not yet been allocated capital and is currently undergoing procedural formalities. Nonetheless, compared to the initial proposal, total investment has risen by 248.7 billion VND due to projected site clearance and construction costs. Similarly, the road connecting Tam Duong I and II Industrial Parks has completed site clearance for 1.6km but has yet to select a contractor. Its total investment has increased by 136.6 billion VND over the original estimate.

To ensure the total investment does not exceed the limits required by the Department of Finance, the Project Management Board proposed two groups of solutions. For ongoing projects (Provincial Roads 310C and 309B), an increase in total investment is mandatory as site clearance costs are an objective reality; auxiliary items such as greenery and sidewalks may be cut, though these reductions are insufficient to offset the overall increase. For new or unstarted projects (Provincial Road 307 and the Industrial Park connecting road), the Board proposes implementing phased investment or reducing the cross-sectional scale to maintain the originally approved total investment budget.

Overview of the conference.

Vice Chairman Quach Tat Liem requested the PMB to collaborate with local communes to meticulously review land origins, cross-referencing current status with records and provincial residential land quotas to ensure accurate tallies.

Regarding Ring Road 3, which is 92.3% complete, he approved immediate adjustments to finalize the project. For new projects, he agreed in principle but requested they be included in the medium-term public investment plan for balance. The PMB must urgently categorize all transport projects into two groups: transitional projects (with disbursed and carried-over capital for 2026-2030) and new projects, proposing a priority list for the Provincial People’s Committee’s decision.

Dinh Vu