Viet Nam’s Road Project to Ease Traffic Woes Choking Economic Expansion

MANILA, PHILIPPINES – Faced with an inefficient and costly transport system and the growing needs of a rapidly expanding economy, Viet Nam plans to complete a major road project that will help decongest its largest city and economic hub.

The Japan Special Fund is providing a $1 million grant to prepare a feasibility study to complete the partially constructed Second Ring Road in Ho Chi Minh City. The government of Viet Nam is contributing $250,000 to complete the funding.

The project is one of four ring roads planned for Ho Chi Minh. Encircling the city at a radius of about five to 10 kilometers from the city center, it will decongest the city center and relieve it of large volumes of heavy truck traffic heading to and from the port area south of the city center.

"There is an urgent need to provide relief to the city roads connecting the center of Ho Chi Minh City and the port area," said Paul Vallely, Senior Transport Specialist of ADB’s Viet Nam Resident Mission. "Completing this road will go a long way toward easing congestion."

Much of the Second Ring Road has already been built and is in use, but a large part of the eastern section and a segment of the western section have yet to be completed.

The technical assistance will have two components – a feasibility study for the construction work required to complete the Second Ring Road and assistance for the management of the Ho Chi Minh City urban road network, which is the responsibility of the Department of Transport and Urban Public Works.

The economy of Viet Nam is among the fastest growing in the world, posting an 8% expansion in 2006, with industry and services contributing more than 90% of that growth. The volume of trade through the port of Ho Chi Minh City grew by more than 15% in value in 2006. With economic growth expected to continue in the medium term, and households enjoying higher incomes as a result, more families will be able to buy cars and traffic is expected to rise significantly. Roads in and around the city are becoming heavily congested and transport costs are rising.