New PPP law: toll-free driving will soon be a thing of the past? Experts warn!

New PPP law: toll-free driving will soon be a thing of the past? Experts warn!

On May 17, 2025, the National Assembly of Vietnam will discuss the draft law to reform and amend the Public-Private Partnership (PPP) Law. Delegate Ta Van Ha from the Quang Nam Delegation raises concerns about the effectiveness of the PPP law so far, which has not been promoted in the past. This is also underlined by the fact that private investors could not be found in some high-traffic sections.

To activate private investment, delegates propose to revise both the legal framework and the PPP law. The routes used for PPP projects currently benefit from a toll exemption, which the government wants to abolish in order to attract investors for necessary renovations and renovations through toll fees. Delegate Ta Van Ha is considering the amount and duration of these tolls in order to minimize the burden on the population.

Comparison with neighboring countries and necessary changes

Delegate Nguyen Quang Huan from the Binh Duong Delegation pointed out that the development of PPP in Vietnam lags behind compared to neighboring countries such as Korea and the Philippines. For a successful PPP policy, it is crucial to guarantee a minimum turnover for investors, as is the case in other countries.

Similarly, delegate Duong Tan Quan from the Ba Ria – Vung Tau delegation called for an amendment to Article 6 of the Public Investment Law. This amendment is intended to help define outstanding debts more clearly and to supplement transitional provisions clarifying authority in relation to approved projects.

Innovations and revenue sharing mechanisms

The current draft law allows the application of BOT (Build-Operate-Transfer) contracts to projects that serve to modernize and expand existing structures. In addition, new rules for early contract terminations for PPP projects in the field of science and technology will be introduced. This could significantly improve the efficiency of projects. In addition, the revenue sharing mechanism will be revised so that the government determines the sharing ratios.

In summary, the discussion in the National Assembly shows a strong need for reforms in the PPP sector in order to stimulate private investment and overcome existing challenges. The adjustments to existing laws could help put Vietnam on the right course towards a successful integration of private and government resources. Further insights into the framework conditions of these public-private partnerships are provided by scientific works, as documented in the comprehensive analysis of public-private partnerships by various experts, e.g. in the book by Ambrosius and others, published by Mühlenkamp under the title “Public-Private Partnerships. Potentials and Problems” ( Springer ).