Vietnam is set to further transform its road infrastructure and urban mobility landscape through the expanded adoption of cashless tolling and other transport-related digital payment services. The strategic investment from the IFC will enable VETC, the country's leading electronic toll collection (ETC) operator, to scale its operations and enhance connectivity and road safety, and improve efficiency for millions of road users.

The move empowers VETC to significantly expand its ETC system coverage on toll roads across the country by 2030. The funding will also support VETC, which currently holds a 75 per cent market share in the ETC sector, in diversifying its offerings to include other transport-related digital payment services, such as e-parking, airport entrance fees, and cashless fuel station transactions.

Road transport connects the majority of Vietnam's passenger and freight traffic, and is currently undergoing significant expansion and modernisation thanks to substantial investment and ambitious government plans to add over 5,000km of expressways by 2030 and an additional 9,000km by 2050. Regulation in 2022 requiring ETC systems on all expressways has further accelerated the adoption of digital tolling.

Since its introduction in 2015, ETC usage has surged, with the annual volume of transactions almost doubling each year from 2019 to 2023, according to the Ministry of Transport. This rapid adoption has greatly reduced travel times, eased congestion, lowered fuel consumption, and decreased greenhouse gas (GHG) emissions, resulting in nearly $1 billion in economic savings over this five-year period.

"We are honoured to be one of the leaders in the digital transformation journey for Vietnam's transportation sector," said Nguyen Le Thang, VETC general director. "This pivotal investment from the IFC will enable us to accelerate the deployment of advanced ETC systems, delivering unmatched efficiency, cost savings, and environmental benefits. Beyond toll collection, we are laying the groundwork for a smarter, greener, and more connected mobility future, creating significant economic and social value for the country."

"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," said Katherine Koh, IFC regional industry manager for infrastructure and natural resources in Asia-Pacific. "The expansion of electronic toll collection and the digitalisation of vehicle-related payment services will enhance mobility and improve the capacity and efficiency of road transport infrastructure, and deliver environmental benefits by reducing congestion and GHG emissions associated with road traffic."