The International Finance Corporation (IFC), part of the World Bank Group, has invested $19.2 million in Vietnam’s electronic toll collection (ETC) operator, VETC Joint Stock Company.
IFC said in a statement on Wednesday that it has made a strategic investment in VETC to scale its operations, enhance connectivity and road safety, and improve efficiency for millions of road users.
According to the statement, IFC completed its subscription to a five-year, VND 500 billion ($19.2 million) convertible bond, empowering VETC to significantly expand its ETC system coverage across toll roads nationwide by 2030.
The funding will help VETC, which already controls 75% of Vietnam’s ETC market, to grow its services. The company plans to add new digital payment options for things like e-parking, airport entry fees, and paying at fuel stations without using cash.
IFC said that Vietnam is working to improve its roads and transport systems by using more digital payment methods, like cashless tolls.
Most people and goods in Vietnam travel by road, and the country is investing a lot in building and upgrading highways. The government plans to add over 5,000 km of expressways by 2030 and an additional 9,000 km by 2050.
In 2022, a new rule made electronic toll collection (ETC) systems mandatory on all expressways, which helped speed up the use of digital tolling.
Since ETC started in 2015, the number of transactions has almost doubled every year from 2019 to 2023. This has helped reduce travel time, traffic jams, fuel use, and pollution—saving Vietnam nearly $1 billion over the last five years.
“We are honored 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.
Katherine Koh, IFC Regional Industry Manager for Infrastructure and Natural Resources in Asia and the Pacific, said that as Vietnam’s economy continues its strong growth trajectory and its role in global supply chains expands, the need for efficient and sustainable infrastructure is crucial.
“The expansion of electronic toll collection and the digitalization of vehicle-related payment services will not only enhance mobility and improve the capacity and efficiency of road transport infrastructure, but it will also deliver environmental benefits by reducing congestion and greenhouse gas emissions associated with road traffic,” she added.
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