CII-led consortium wins BOT contract for National Highway 1 expansion in HCMC

Overview

Ho Chi Minh City has approved a consortium led by Construction Investment 194 JSC, which includes CII (HOSE: CII) and its affiliates, as the investor for the BOT expansion of National Highway 1. The project, with a total investment of about VND 6,674 billion (approximately USD 267 million), is expected to complete by 2029. This marks a significant infrastructure contract win for CII, reinforcing its role in the city’s gateway upgrades.

Key Facts

• The consortium includes Construction Investment 194 JSC (lead), CII, CII PPP, and IMIC.
• Total investment for the project is about VND 6,674 billion (approx. USD 267 million).
• The project involves upgrading and expanding a 9.62 km section of National Highway 1 from Kinh Duong Vuong Street to the former Long An province border (now Le Kha Phieu Street).
• The road will be widened to a 60-meter cross-section with 10-12 lanes.
• The toll collection period is 22 years and 11 months.
• The project is part of a larger program under Resolution 98, with total investment for all components at VND 16,285 billion.
• Construction is scheduled to start on August 29, with completion targeted for 2029.

What Happened

The Ho Chi Minh City People’s Committee has officially approved the selection of the investor consortium for Component 3 of the National Highway 1 expansion project. The consortium, led by Construction Investment 194 JSC, includes CII and its subsidiaries, CII PPP and IMIC. This approval follows the city’s earlier selection of the same consortium for the National Highway 13 expansion project, indicating a pattern of awarding major infrastructure contracts to this group.

The project is being implemented under a public-private partnership (PPP) model with a BOT (Build-Operate-Transfer) contract. The total investment for this component is approximately VND 6,674 billion, with a toll collection period of 22 years and 11 months. The expansion will cover a 9.62 km stretch, widening the road to a 60-meter cross-section with 10-12 lanes. The project is expected to be completed and operational by 2029.

Market Context

CII (HOSE: CII) closed at VND 14,700 on August 28, 2026. The company has been actively involved in infrastructure projects in Ho Chi Minh City, particularly under the special mechanisms of Resolution 98. This new contract win adds to CII’s portfolio of BOT projects, which already includes the National Highway 13 expansion. The broader Vietnamese infrastructure sector is seeing increased activity as the government pushes for improved connectivity, especially in the southern economic hub.

Strategic Significance

For long-term investors, this contract win solidifies CII’s position as a key player in Ho Chi Minh City’s infrastructure development. The company’s involvement in multiple BOT projects under Resolution 98 provides a steady pipeline of revenue from toll collections and construction. The expansion of National Highway 1 is critical for easing congestion at the city’s western gateway, which is expected to boost economic activity and property values along the corridor. CII’s strategic focus on high-traffic routes positions it well for sustained growth.

What to Watch

• Commencement of construction on August 29 and progress updates.
• Financial close and disbursement milestones for the project.
• Traffic volume and toll revenue performance once operational.
• Any regulatory changes affecting BOT contract terms or toll rates.
• CII’s quarterly earnings reports to gauge the financial impact of the project.