The 40-kilometer expressway will start at Luong Vuong Commune in Tuyen Quang, 130 kilometers north of Hanoi, and end at the intersection of the Noi Bai – Lao Cai Expressway in Phu Tho.

With four lanes, it will allow speeds of up to 80 kilometers per hour when completed by 2023.

It was originally proposed to be built with private investment, but a lack of bidders meant the Ministry of Transport opted for public funding.

Tuyen Quang authorities said in November that land acquisition for the expressway was 70 percent complete.

The government has in recent years been planning and building a number of expressways to improve connectivity and boost economic growth.