Investment company IFC provides VETC with a $19.2 million convertible bond financing
The International Finance Corporation (IFC), a member of the World Bank Group, has made a strategic investment in VETC, Vietnam's leading electronic toll collection (ETC) operator. This investment will help VETC expand its ETC systems across toll roads nationwide by 2030, aligning with Vietnam's ambitious plans to build over 5,000 kilometers of expressways by 2030 and an additional 9,000 kilometers by 2050.
Nguyen Le Thang, VETC's general director, stated that the investment from the IFC will accelerate the deployment of advanced ETC systems and create significant economic and social value for Vietnam. Since its introduction in 2015, ETC usage in Vietnam has surged, with the annual volume of transactions almost doubling each year from 2019 to 2023. This rapid adoption has greatly reduced travel times, eased congestion, lowered fuel consumption, and decreased greenhouse gas (GHG) emissions in Vietnam, resulting in nearly $1 billion in economic savings over the past five years.
The funding will also support VETC in diversifying its offerings to include other transport-related digital payment services. This includes e-parking, airport entrance fees, and cashless fuel station transactions, helping transform Vietnam's urban mobility landscape by promoting cashless and digital transactions.
The IFC's investment supports Vietnam's broader digital transformation agenda, which includes modernizing its road infrastructure and enhancing urban mobility through digital solutions. By supporting the implementation of advanced ETC systems, IFC contributes to improving road safety and enforcing payment collection transparency. This modernization helps in creating a smarter and greener transport system.
The collaboration between IFC and VETC accelerates Vietnam's infrastructure modernization, aligning with the country's goals for sustainable transport and economic growth. Regulation in 2022 requires ETC systems on all expressways in Vietnam, and the investment aims to enable VETC to expand its ETC system coverage on toll roads across Vietnam by 2030.
In conclusion, the IFC's investment in VETC is a significant step towards digital transformation and modernization of Vietnam's road infrastructure and urban mobility. The investment will not only improve road connectivity and enhance the efficiency of road transport but also contribute to reducing travel times, easing congestion, lowering fuel consumption, and decreasing GHG emissions, ultimately leading to a more sustainable and efficient transport system in Vietnam.
[1] IFC Investment to Accelerate Digital Transformation in Vietnam's Road Infrastructure
[2] IFC Invests $19.2 Million in VETC, Vietnam's Leading Electronic Toll Collection Operator
[3] IFC Supports VETC in Diversifying Services to Include Other Transport-Related Digital Payments
[4] IFC's Investment in VETC: A Step Towards Sustainable Transport and Economic Growth in Vietnam
[1] The strategic investment by the International Finance Corporation (IFC) will drive digital transformation in Vietnam's road infrastructure, focusing particularly on electronic toll collection (ETC) systems.
[2] As part of its broader digital agenda, the IFC has committed $19.2 million to VETC, Vietnam's leading ETC operator, to expand its ETC systems across toll roads nationwide by 2030, while also investing in technology for other transport-related digital payment services, such as e-parking, airport entrance fees, and cashless fuel station transactions.
