On August 11, in Lam Dong Province, the Lam Dong Branch of the Vietnam Development Bank and Bao Loc–Lien Khuong Expressway BOT Joint Stock Company signed a credit agreement providing State investment credit for Phase 1 of the Bao Loc–Lien Khuong Expressway construction project under the public-private partnership model. Under the agreement, VDB Lam Dong will provide the project with a loan of up to VND 4.978 trillion.

Completing the financial structure for a key Central Highlands expressway

Under the credit agreement, VDB Lam Dong will provide Bao Loc–Lien Khuong Expressway BOT Joint Stock Company with a loan of up to VND 4.978 trillion from the State investment credit fund.

The loan will be used to cover investment costs for project components and works approved by the competent authorities and specified in the BOT contract. It has a maximum term of 19 years and six months, including an agreed grace period for principal repayments. These terms are consistent with the characteristics of a large-scale transport infrastructure project involving a lengthy investment and capital recovery period.

Phase 1 of the project has an estimated total investment of approximately VND 17.718 trillion. Of this amount, the State budget will contribute around VND 7.761 trillion, equivalent to 43.8%. The remaining VND 9.957 trillion will be mobilized by the investors and the project company. VDB’s credit facility of up to VND 4.978 trillion represents approximately 50% of the capital that the investors are required to arrange.

Bao Loc–Lien Khuong Expressway BOT Joint Stock Company was established to serve as the project company. Its investors comprise T&T Transport Infrastructure Investment and Development Company Limited, a member of T&T Group; Phuong Trang Group Investment Joint Stock Company, or FUTA Group; and Phuong Thanh Transport Construction and Investment Joint Stock Company. Their respective equity interests are 60%, 25% and 15%.

Speaking at the signing ceremony, Mr. Nguyen Ngoc Nghi, Deputy General Director of T&T Group, expressed his appreciation for VDB’s support in enabling businesses to access sustainable medium- and long-term financing at reasonable capital costs. According to Mr. Nghi, VDB’s participation in financing the project also demonstrates the banking sector’s support for a key infrastructure development.

“The signing of today’s credit agreement marks a pivotal milestone, establishing a solid financial foundation for the project and making an important contribution to realizing the country’s aspiration for rapid and sustainable development,” the T&T Group Deputy General Director emphasized.

The project company and its investors have committed to using the funding for its intended purposes, strictly complying with all applicable laws and contractual agreements, and mobilizing their full resources to implement the project safely, on schedule and to the required quality standards.

Converging capital flows create new opportunities for major infrastructure projects

Notably, Agribank, one of Vietnam’s Big Four banks, is also expected to participate in financing the Bao Loc–Lien Khuong Expressway project in the coming period. Together with the credit facility of nearly VND 5 trillion from VDB, the participation of major financial institutions is gradually completing the project’s financing structure.

Capital, however, is only half the equation. For large-scale infrastructure projects, the ability to mobilize financing must be accompanied by effective project delivery, cost management, schedule control and multi-stakeholder coordination throughout the project’s life cycle.

At T&T Group, these capabilities have been developed over more than three decades through an investment portfolio spanning transport infrastructure, logistics, industry and energy—all sectors characterized by significant capital requirements, long investment cycles and demanding implementation standards.

In transport infrastructure, alongside the Bao Loc–Lien Khuong Expressway, T&T Group is participating in the development of Quang Tri Airport and Component Project 3 of Hanoi Capital Region Ring Road No. 4.

In logistics, the Group and its Singaporean partner are developing Vietnam SuperPort—a pioneering smart logistics “superport” within the ASEAN Smart Logistics Network. In industrial infrastructure, projects such as the Nam Phuc Tho Industrial Cluster and Vam Cong Industrial Park are expanding manufacturing capacity in their respective localities.

In the energy sector, T&T Group is operating and investing in projects with a combined capacity of nearly 2,900 MW, while continuing to develop a portfolio of approximately 14,000 MW encompassing wind, solar, biomass and other clean energy sources.

One notable project is the Savan 1 Wind Power Plant in Laos. During its first seven months of commercial operation, the project’s 48-turbine complex generated approximately USD 36.5 million in revenue. Savan 1 supplies around 0.9 billion kWh of electricity to the national power system annually.

Taken together, these projects do not exist in isolation. Instead, they form part of a sustained process through which T&T Group has accumulated assets, experience and project delivery capabilities over time.

Each completed project adds another layer of expertise in investment organization, risk management, partner coordination and capital management, creating a stronger foundation from which the Group can undertake projects of greater scale and complexity.

Drawing on this accumulated experience, T&T Group is steadily establishing its role as an infrastructure architect—combining its ability to mobilize resources with strong organizational and implementation capabilities to deliver projects that create long-term value for the economy.

Returning to the Bao Loc–Lien Khuong Expressway, the participation of VDB and Agribank in financing the project demonstrates that execution capability is becoming an increasingly important factor in enabling T&T Group and its consortium partners to access large-scale sources of capital. It also provides a foundation for all parties to concentrate their resources on implementing the project.

Mr. Nguyen Ngoc Nghi said that, with the direction of the local authorities, the project’s preparations, and the cooperative and responsible approach of all relevant parties, the necessary conditions are in place for the project to be implemented in accordance with its stated objectives.

Once completed, the Bao Loc–Lien Khuong Expressway, together with the remaining sections of the Dau Giay–Lien Khuong route, will shorten travel and transport links between Ho Chi Minh City and the southeastern provinces with Lam Dong and the Central Highlands. It will strengthen regional connectivity and facilitate production, trade, and the import and export of agricultural products and other goods.