IFC and VETC Partner to Accelerate Vietnam’s Digital Transport Revolution

 In a significant move to modernize Vietnam’s road infrastructure and advance its digital transformation agenda, the International Finance Corporation (IFC)—a member of the World Bank Group—has made a strategic investment of VND500 billion (approximately $19.2 million) in VETC Joint Stock Company (VETC), the nation’s leading electronic toll collection (ETC) system operator. This investment is poised to accelerate the rollout of cashless tolling systems and expand digital mobility services, contributing to a more efficient, sustainable, and connected transportation future for Vietnam.

The deal, finalized on July 22, 2025, involves IFC’s subscription to a five-year convertible bond, marking a deepening of private-sector engagement in Vietnam’s rapidly evolving infrastructure ecosystem. The funding will support VETC’s ambitious plans to expand ETC coverage across the country's growing expressway network and diversify into related services, such as e-parking, digital fuel payments, and cashless airport access.

VETC: Pioneering Smart Mobility in Vietnam

Established in 2015, VETC has grown to dominate the ETC sector in Vietnam, holding a 75 percent market share. The company’s solutions have significantly improved traffic flow, reduced congestion at toll booths, and enabled time and fuel savings for millions of Vietnamese motorists.

“We are honored to be one of the leaders in the digital transformation journey for Viet Nam's transportation sector,” said Nguyen Le Thang, General Director of VETC. “This pivotal investment from IFC enables us to accelerate the deployment of advanced ETC systems, delivering unmatched efficiency, cost savings, and environmental benefits.”

With IFC’s backing, VETC plans to expand its ETC coverage nationwide by 2030, supporting government goals to develop over 5,000 kilometers of expressways by that year and an additional 9,000 kilometers by 2050. The expansion aligns with Vietnam’s digital economy strategy and ongoing efforts to modernize logistics and reduce carbon emissions.

Digital Tolling: A Proven Driver of Efficiency and Sustainability

Since the national ETC system was launched, digital tolling has brought transformative results. Between 2019 and 2023, ETC transactions more than doubled annually, according to Vietnam’s Ministry of Transport. The benefits are tangible:

• Reduced travel times across major corridors

• Lowered fuel consumption, easing the burden on households and freight operators

• Decreased greenhouse gas emissions, supporting climate commitments

• Over $1 billion in economic savings over five years

These gains were further supported by a 2022 regulation mandating ETC systems on all expressways—an important milestone in streamlining Vietnam’s national road infrastructure.

“As Viet Nam’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, Asia and Pacific.

“The expansion of electronic toll collection and the digitalization of vehicle-related payment services will not only enhance mobility and road capacity, but also reduce congestion and greenhouse gas emissions.”

Beyond Tolls: Expanding the Digital Mobility Ecosystem

VETC’s vision extends beyond toll booths. With IFC’s support, the company aims to create an integrated ecosystem of digital transport payments, including:

• Cashless e-parking solutions for urban areas

• Contactless payments at fuel stations, enabling quicker, safer refueling

• Digital access to airports and transport hubs

• Data-driven traffic and vehicle management systems

These innovations are intended to improve the quality of life for road users, reduce administrative bottlenecks, and contribute to Vietnam’s green urban development goals.

IFC’s Commitment to Sustainable Infrastructure in Vietnam

The investment reflects IFC’s broader mandate to support private sector-led infrastructure development in emerging markets. Over the past decades, IFC has played a key role in Vietnam’s infrastructure, energy, and digital transformation sectors.

This new engagement builds on IFC’s global expertise in financing sustainable transport solutions, promoting climate-smart infrastructure, and fostering public-private partnerships.

The VETC investment is also aligned with Vietnam’s commitments under the Paris Agreement and its Just Energy Transition Partnership (JETP), which emphasizes low-carbon development and modern transport systems.

Paving the Way for a Smarter, Greener Future

Vietnam’s transport sector is at a critical juncture. With strong economic growth, urbanization, and rising demand for mobility, investments like this one are essential to ensure efficiency, safety, and environmental sustainability.

Through this IFC-VETC partnership, Vietnam is not just digitizing tolls—it is laying the groundwork for a nationwide smart mobility revolution that aligns with its digital transformation and decarbonization goals.

As VETC scales its operations and diversifies its digital services, it stands to become a model for transport innovation in Southeast Asia, demonstrating how strategic finance, private-sector leadership, and technology can reshape national infrastructure for decades to come.