Hai Phong Invests Nearly VND 22.67 Trillion in East-West Axis Road

Hai Phong City, a major port city in northern Vietnam, has approved the construction of a new key arterial road, the "East-West Axis Road." This project, with a total investment of nearly VND 22.67 trillion (approximately $1 billion USD), will span approximately 24 km, be 68 meters wide, and feature a 6-lane main carriageway with 4 accompanying lanes. The construction is slated to be carried out between 2026 and 2030. The primary objective of this road construction is to alleviate traffic congestion on National Highway 5, the current main route connecting the eastern and western urban centers of the city, and to reduce travel times. Furthermore, the project aims to stimulate regional economic development and attract investment by creating new development spaces along the road corridor and improving land use efficiency. The project will be implemented in three component projects. Land acquisition and resettlement, along with utility relocation, will require approximately VND 4.77 trillion, funded by the city's budget. The construction of the segment from National Highway 10 to Tỉnh Thủy Road will cost over VND 2.77 trillion, also financed by the city budget. The remaining segment, from Tỉnh Thủy Road to the end of the line, will involve an investment of over VND 15.11 trillion and will be executed under a Public-Private Partnership (PPP) model, specifically a Build-Transfer (BT) contract. Under this BT arrangement, investors will raise capital, and the city will compensate them with land upon project completion. East Star IP Group has proposed this project. The city plans to allocate approximately 360 hectares of land in various districts, including Hồng Bàng, An Hải, An Dương, and Thủy Nguyên, as payment to the investor for the BT project. The planning and approval processes for the project are expected to be completed by September 2026, with land acquisition taking place from December 2026 to December 2027. The BT contract signing and project groundbreaking are scheduled for December 2026. Construction is planned from early 2027 to the end of 2029, with the road expected to be operational in 2030. Under Vietnam's one-party system, such large-scale infrastructure investments are considered a crucial pillar of the government's economic growth strategy. Hai Phong, as a vital hub in the northern economic region and an international trading port, requires enhanced logistics infrastructure for its national economic significance. While Vietnam has strong economic ties with China, domestic infrastructure development is also prioritized for diversifying supply chains and strengthening the country's economic autonomy.