The financing agreement comes amid strong commitment from local authorities in Cao Bang and Lang Son provinces, proactive implementation by investors and the project company, and a rigorous appraisal process by VPBank. The funding is expected to help ease capital flows and accelerate progress.

Speaking at the signing ceremony, Nguyen Huu Hung, vice chairman of Deo Ca Group, described the expressway as a key transport infrastructure venture in the northeastern region, traversing an area of strategic importance, both as a frontier zone and an international trade gateway.

However, the region also faces significant challenges, including difficult terrain and underdeveloped infrastructure, requiring strong momentum to unlock growth. In this context, VPBank’s continued financing for Phase 2 reflects its long-term commitment to the initiative and the region’s development.

“This partnership demonstrates VPBank’s confidence in the investor’s capacity to organise, manage and execute the scheme. It is also the result of both sides overcoming numerous challenges in Phase 1, from policy and construction conditions to schedule pressures, design optimisation and cost efficiency,” Hung said.

Phase 2 of the Dong Dang - Tra Linh expressway public-private partnership project broke ground on August 19, 2025. The phase includes the expansion of 93.35km built in Phase 1 and the construction of an additional 27.71 km connecting to Tra Linh border gate, with a total investment of $448 million.

In line with the prime minister’s directive regarding the expansion of the roadbed to 22m in accordance with national technical standards, several components initially planned for later phases, such as bridges, culverts, underpasses, asphalt pavement and traffic safety systems, have been redesigned and implemented simultaneously. This adjustment is expected to save over $20 million in investment costs.

In 2026, the company aims to complete the synchronous expansion of 93km alongside Phase 1 for operation, shortening the timeline by approximately eight months compared to the contract.

For the newly constructed section, key targets include completing the K95 roadbed, substructures of bridges, and excavation of three tunnels.

Previously, VPBank had extended approximately $90 million in credit for Phase 1 of the scheme.

Dong Dang - Tra Linh Expressway spans a total length of 121km across Lang Son and Cao Bang provinces, designed to expressway standards with a maximum operating speed of 80 km/h. The route starts at Tan Thanh border gate (Lang Son) and ends at Tra Linh Border Economic Zone (Cao Bang).

The project is divided into two phases with a total investment of $1 billion under a public-private partnership model, with the Cao Bang People’s Committee serving as the authority.

Phase 2 includes the expansion of 93.35km and the construction of 27.71km of new expressway, featuring 17 bridges and three mountain tunnels, with total investment of $448 million.

The investor consortium comprises Deo Ca Group, 568 Construction Investment Group, DCT 559 Investment JSC, Hoang Long Construction Investment Corporation, and Tan Thanh JSC.

Once completed, the expressway is expected to significantly enhance connectivity between Cao Bang and major domestic economic centres, while opening up trade corridors linking to western and southwestern China, and further to Central Asia and Europe.

Travel from Hanoi to Cao Bang is projected to be reduced to approximately 3.5 hours, helping to lower logistics costs, improve transport efficiency, and boost the province’s investment appeal.