Road tolls on National Highway 5 will increase starting December 1st.

The road usage fees at the two toll stations on National Highway 5, intended to recoup the investment for the Hanoi-Hai Phong Expressway Project, will be adjusted effective December 1, 2015.

Illustrative image. (Source: VNA)

According to Circular No. 143/2015/TT-BTC recently issued by the Ministry of Finance, which regulates the collection rates, collection procedures, management, and use of road tolls at two toll stations on National Highway 5, the road toll rates on National Highway 5 at these two stations will be adjusted in two phases. Phase I (from December 1, 2015 to March 31, 2016), and Phase II (from January 1, 2016 onwards).

Specifically, from December 1, 2015 to March 31, 2016, the one-way fee for vehicles with fewer than 12 seats and trucks under 2 tons was 30,000 VND, while the highest fee for vehicles over 18 tons was 160,000 VND. After March 31, 2016, the fees increased to 45,000 VND and 200,000 VND respectively.

In a discussion with Mr. Dao Van Chien, Chairman of the Board of Directors of Vietnam Infrastructure Development and Financial Investment Corporation (VIDIFI), he stated that the request to adjust toll rates on National Highway 5 aims to ensure the financial feasibility of the Hanoi - Hai Phong Expressway Project and to generate funds for maintaining the quality of the aforementioned parallel national highway.

According to VIDIFI's leadership, in Decision No. 1621/QD-TTg dated November 29, 2007, the Prime Minister allowed VIDIFI to collect road usage fees on National Highway 5 until the end of the BOT business period, in addition to other revenue sources, to recoup the investment for the Hanoi - Hai Phong Expressway Project.

According to the new financial plan for the Hanoi - Hai Phong Expressway Project, approved by the Prime Minister last May, VIDIFI is allowed to increase tolls over time like other toll stations (currently, the toll rate on National Highway 5 has been maintained for 10 years and is the lowest in the country).

Meanwhile, road usage fees on national highways have been adjusted upwards according to the framework stipulated in Circular No. 159, increasing by 2-3 times compared to the fees currently collected on National Highway 5.

"If VIDIFI is not allowed to increase toll fees on National Highway 5, the recently approved financial plan for the Hanoi-Hai Phong expressway could be ruined," Mr. Dao Van Chien shared.

Furthermore, with the current extremely low revenue, the investor will face difficulties in allocating funds for road maintenance over the next three years, as the time for a complete overhaul of the entire road is fast approaching.

According to the plan, starting from January 1, 2016, the Ministry of Transport will transfer National Highway 5 to VIDIFI for management. The investor will then be responsible for repairing and maintaining the road using funds collected from toll stations.

Previously, in 2012, VIDIFI allocated nearly 400 billion VND from the toll revenue of National Highway 5 to repay 50% of the loan for the project to renovate and restore the surface of National Highway 5, ensuring traffic safety and maintaining its operational capacity.

National Highway 5 is a vital artery in the northeast of Hanoi, with a traffic volume of over 11,000 vehicles per day and night; of which, container trucks and heavy trucks account for approximately 50%. This highway has undergone numerous upgrades and repairs, but the road surface quality continues to deteriorate rapidly.

According to the Communist Party of Vietnam