Phu Tho is concentrating on addressing many bottlenecks in site clearance, investment procedures, and resource allocation to accelerate the progress of key transport projects in the province. Projects such as expressways, interprovincial connectors, and urban infrastructure are not only crucial for transportation but also act as major drivers of socio-economic development and investment attraction.
Addressing challenges in site clearance
According to the management boards of key transport projects in the province, the interregional road project connecting Ho Chi Minh Road with National Highway 70B and National Highway 32C to Yen Bai has a total investment of VND2,120 billion. Completion is planned for 2025. To date, more than VND1,397 billion has been disbursed, equal to 97%. Inventory and approval of compensation plans have been fully completed, and compensation payments for site clearance have been made to 3,603 households, reaching 99.91%.
For the project to renovate and upgrade the road connecting National Highway 32 with National Highway 70B, it consists of three phases with a total route length of 43.834 km and a land-use area of about 75.5 ha. The total investment exceeds VND1,160 billion, of which VND881.1 billion was carried out in the 2015-2020 phase. The 2021-2025 phase is underway with an investment of nearly VND279.4 billion, including site clearance handover for 7.931 of 8.05 km. Site clearance compensation has not yet been completed for 119 m. Regarding the resettlement area in Yen Son commune (formerly Luong Nha commune), the contractor has largely finished construction works and is finalizing them for acceptance; the change of land-use purpose for the resettlement area has been completed.
For the project to renovate, reinforce, and upgrade Au Co Road, with a total length of 40.58 km and a total investment of VND1,496 billion divided into two phases, cumulative disbursement to date has exceeded VND1,219.5 billion. Of the seven resettlement sites planned with 86 lots, five sites with 61 lots have been completed; one site is under construction with 95% of the work finished; and one site is in the construction drawing design stage.
The transport infrastructure project connecting the Capital Region within the province (former administrative setup), including Ring Road 5 of the Capital Region and the section skirting the foot of Tam Dao Mountain, linking Ring Road 5 with National Highway 2B to Tay Thien, then to National Highway 2C and Tuyen Quang, has a route length of about 26.7 km and a total investment of VND1,800 billion. To date, localities have handed over 10.9 km of site to the investor and contractors, equal to 43%. The value of completed works so far is about VND370 billion. Implementation is scheduled through the end of 2025. The total land area to be acquired is about 133.27 ha, involving 2,703 households. An estimated 82 households will relocate into six resettlement areas covering 2.4 ha, and two public cemeteries will be expanded.
Disbursement results, including advances and payments for completed work from the start of the project to date, have reached nearly VND703 billion. Of this, public investment disbursement in 2025 has reached nearly VND112.4 billion, equal to 16%. For the project to widen the central trunk road of the new Me Linh urban area, with a total investment of VND745 billion and a length of 3.26 km, site handover to the construction unit currently stands at about 53.13%. Cumulative public investment disbursement to date has exceeded VND411 billion, reaching 84.5%.
Regarding the project to renovate and widen National Highway 2 on the Vinh Yen-Viet Tri section, with a total length of 10.66 km, several localities are appraising land acquisition maps, issuing land acquisition notices, conducting inventories, and approving land prices to facilitate land acquisition and site clearance compensation. The Vinh Phuc Area Project Management Board has issued a document assigning staff to join the project’s site clearance and compensation working group, and some localities have pre-handed over site clearance to the investor.
According to reports from the investor and localities, many projects are currently behind schedule due to several difficulties and obstacles. The main causes include site clearance and resettlement; insufficient budgets in many localities to determine specific land-price tables for compensation; challenges in defining the necessary and sufficient conditions for people’s resettlement; the need to adjust the scale and location of certain projects; and shortages of embankment soil. Additionally, difficulties arise from people refusing site clearance compensation payments and a lack of decisiveness by local authorities in enforcing site clearance.
To effectively remove obstacles and accelerate the progress of transport projects in the area, it is necessary to strengthen communications and public outreach simultaneously to build consensus during implementation.
Vice Chairman of the Provincial People’s Committee Quach Tat Liem emphasized that transport infrastructure plays a particularly important role in the province’s socio-economic development strategy. The incomplete apparatus during the transition to a two-tier local government model has partly affected the progress of some transport projects.
To address this, he assigned specific tasks to units and localities. The Phu Tho Area Land Fund Development Center will continue carrying out site clearance for major projects in the area. Resettlement areas will be directly managed by commune-level People’s Committees. In Vinh Phuc, communes will continue performing site clearance tasks as before. For projects spanning multiple localities, the Land Fund Development Center will take the lead to ensure consistent and synchronized organization and execution. He requested that departments, sectors, investors, and local authorities coordinate closely to promptly remove difficulties and obstacles in project implementation, particularly in land valuation, which remains one of the major bottlenecks.
Proactive medium-term investment planning
According to the Phu Tho Provincial Department of Finance, the total medium-term public investment plan for 2021-2025 after consolidation (pursuant to Resolution No. 26/NQ-HDND dated 23/7/2025) is VND108,123.283 billion, including central budget capital of VND34,246.215 billion and local budget capital of VND73,877.068 billion.
According to the Department of Finance, there are three proposed options for developing the medium-term public investment plan for 2026-2030: allocate capital for transition projects from 2021-2025 to 2026-2030 at 20% of total funds; allocate 100% of capital for projects transitioning from the previous period to the next period.
Based on an analysis of the limitations of the two options above, the Department of Finance proposed a more flexible option, including allocating funds from increased land-use revenue for transition projects, cutting projects that are not truly essential, and transferring some projects to the list of new starts. Under this option, provincial-budget public investment funds for 2026-2030 will be allocated according to the following principles: closely following the province’s socio-economic development orientation, inheriting the list of works already prepared and ready to start, ensuring a reasonable sectoral and field structure in line with Central resolutions and the Provincial Party Congress Resolution, striving to achieve sustainable growth targets for 2026-2030, and ensuring balanced, harmonious allocation that leverages the potential and advantages of the province’s three key economic zones. Several opinions were shared regarding the projected total capital and allocation options for the 2026-2030 medium-term public investment projects. Some participants recommended carefully reviewing capital allocations for transition projects carried out in 2021–2025 to prevent unfinished or prolonged situations. They also proposed adding an additional approach to formulating the medium-term public investment plan to ensure both feasibility and alignment with the state budget’s balancing capacity. Furthermore, delegates emphasized the capital allocation structure by field, sector, and locality; the allocation principles must prioritize projects with spillover effects, urgency, and completed investment procedures, align with the province’s socio-economic development orientation, and maintain a balanced, harmonious distribution among the province’s three key economic zones.
Chairman of the Phu Tho Provincial People’s Committee Tran Duy Dong emphasized that developing the 2026-2030 medium-term public investment plan is a task of critical importance and a central element of the province’s socio-economic development strategy for the next five years. This plan serves not only as the foundation for creating strategic breakthroughs but also as a key driver in achieving the goal of double-digit economic growth in the coming period.
Le Hien (Vietnam Business Forum)
Vietnamese
