The World Bank Group Member International Finance Corporation (IFC) has invested $19.2 million in VETC Joint Stock Company (VETC), a company that operates electronic toll collection (ETC) in Vietnam.
In a statement released on Wednesday, IFC stated that it has strategically invested in VETC in order to expand its operations, improve road safety and connectivity, and increase efficiency for millions of road users.
The statement claims that IFC has successfully subscribed for a five-year convertible bond worth VND500 billion ($19.2 million), enabling VETC to greatly increase the coverage of its ETC system on all toll roads in the nation by 2030.
With a 75 percent market share in the ETC industry, VETC will also benefit from the funding as it expands its product line to include other digital payment services related to transportation, like cashless fuel station transactions, airport entrance fees, and e-parking.
Vietnam’s road infrastructure and urban mobility landscape will undergo further transformation, according to IFC, as cashless tolling and other digital payment services related to transportation are widely adopted.
The majority of Vietnam’s passenger and freight traffic is connected by road, which is currently undergoing significant expansion and modernization thanks to significant investment and ambitious government plans to add over 5,000 kilometers of expressways by 2030 and an additional 9,000 kilometers by 2050, it was highlighted.
The implementation of digital tolling has been further accelerated by a 2022 regulation mandating ETC systems on all motorways.
According to the Ministry of Transport, the annual volume of transactions nearly doubled annually between 2019 and 2023, demonstrating the explosive growth in ETC usage since its inception in 2015.
Over this five-year period, the swift adoption has resulted in nearly $1 billion in economic savings by significantly cutting travel times, easing traffic, using less fuel, and emitting fewer greenhouse gases.
“We are honoured to be one of the leaders in the digital transformation journey for Viet Nam’s transportation sector,
“This pivotal investment from IFC enables us to accelerate the deployment of advanced ETC systems, delivering unmatched efficiency, cost savings, and environmental benefits to road users,” said Nguyen Le Thang, VETC General Director.
“Beyond toll collection, we are laying the groundwork for a smarter, greener, and more connected mobility future, creating significant economic and social value for our country,” he added.
