What are the cases of cancellation of toll collection in Vietnam?

Hello, Lawnet would like to answer the following:

1. What are the cases of cancellation of toll collection in Vietnam?

Specifically, according to Article 27 of Circular 45/2021/TT-BGTVT, the cases of cancellation of toll collection in Vietnam are as follows:

- In case the capital recovery period of the project expires, the collection management unit shall proactively stop the collection or comply with the decision to stop the collection of the competent authority (or the unit authorized by the competent authority to manage operations of road toll collection)

- The determination of the time of collection cancellation shall be in accordance with the collection contract of the competent authority with the collection management unit or the contract with the PPP project enterprise.

- The cancellation of collection happens in cases prescribed in Clause 2 Article 52 of the Law on Public – Private Partnership Investment 2020.

According to Clause 2, Article 52 of the Law on Public – Private Partnership Investment 2020, the termination of a PPP project contract before its expiry (briefly called early termination) only occurs in the following cases:

+ If the project is affected by a force majeure event, despite all remedial actions taken by parties, the continued execution of the PPP contract will not be ensured;

+ Early termination occurs to gain the state interests; meet the requirements concerning national defence, security and state secrets;

+ The PPP project enterprise loses its solvency in accordance with the law on bankruptcy

+ Either party seriously defaults on contractual obligations;

+ Other cases appear due to substantial changes in circumstances in accordance with civil law to the extent that the contracting parties agree to terminate the contract.

2. Cases of suspension of toll collection in Vietnam

Pursuant to Article 26 of Circular 45/2021/TT-BGTVT stipulating cases of suspension of toll collection include:

- The suspension of collection happens when the PPP project enterprise or the collection management unit violates the maintenance quality of road works and has been warned in writing by the competent authority twice with a time limit for remedial action. Appendix No. 4 promulgated with Circular 45/2021/TT-BGTVT regulates specific details on acts of violating the maintenance quality of road works.

The time of collection suspension is from the time of request stated in the suspension document until the PPP project enterprise or the collection management unit completes its remedial work; such suspension time shall not be less than 1 day.

- The suspension of collection happens when the PPP project enterprise, the collection management unit, the collection operator, or the collection service provider let situations with risks of traffic insecurity or prolonged traffic jam on the road happen and has been warned in writing by the competent authority twice with a time limit for remedial action, however, such remedial action is undone or slow.

The time of collection suspension is from the time of request stated in the suspension document until the PPP project enterprise, the collection management unit, the collection operator, or the collection service provider completes its remedial work; such suspension time shall not be less than 1 day.

- The suspension of collection happens when the collection operator violates regulations prescribed in Points a, b Clause 8 Article 21 of Circular 45/2021/TT-BGTVT or the collection service provider violates regulations prescribed in Points a, b Clause 7 Article 22 of Circular 45/2021/TT-BGTVT.

The time of collection suspension is from the time of request stated in the suspension document until the collection operator or the collection service provider completely remedies the consequences of violations and receives a written authorization for the continuation of operations of road toll collection by the competent authority.

- The suspension of collection happens when the collection operator violates regulations prescribed in Clause 4 Article 21 of Circular 45/2021/TT-BGTVT and has been warned in writing by the competent authority twice with a time limit for remedial action.

The time of collection suspension is from the time of request stated in the suspension document until the collection operator fulfills the content prescribed in Clause 4 Article 21 of Circular 45/2021/TT-BGTVT.

- The suspension of collection happens when the system of technology and equipment directly serving the road toll collection malfunctions or breaks and has not been promptly fixed according to regulations prescribed in Clause 5 Article 21 of Circular 45/2021/TT-BGTVT.

The time of collection suspension is from the time of request stated in the suspension document until the collection operator fixes the problems and receives a written authorization for the continuation of road toll collection by the competent authority.

- The suspension of collection happens at the request of competent authorities in case of an epidemic, natural disasters, and wars, or to serve national security and defense, or to comply with guidelines and policies of the State.

- The suspension of collection happens when the collection management unit, the collection operator, or the collection service provider intentionally delays or fails to comply with the decisions of competent authorities.

- Cases where the suspension of collection is not the fault of the collection management unit, the collection operator, or the collection service provider, shall be handled in accordance with regulations of the law or the collection service contract.

3. Forms and methods of road toll collection in Vietnam

According to Article 9 of Circular 45/2021/TT-BGTVT, forms and methods of road toll collection in Vietnam are as follows:

- There are two forms of road toll collection, electronic toll collection (ETC) and manual toll collection (MTC).

+ ETC is an automatic road toll collection form, road vehicles do not have to stop to pay the toll when passing through toll booths;

+ MTC is the form of road toll collection where road vehicles have to stop one time when passing through the lane control entrance of a toll booth to pay the road toll;

- There are two methods of road toll collection, open and closed methods.

+ An open method is a method where the vehicle owner has to pay a toll according to the type of vehicle at the toll booth instead of the distance traveled;

+ A closed method is a method where the vehicle owner has to pay a toll according to the type of the vehicle and the distance traveled on a road that is subject to road tolls at the toll booth.

- Highway sections; consecutive highway sections; highways; consecutive highways are organized as a closed collection system.

- Mixed-used toll lane (applying both ETC and MTC) at a toll booth is arranged as per regulation prescribed in Points a, b Clause 3 Article 5 of Decision 19/2020/QD-TTg.

- Competent authorities shall decide the form and method of road toll collection in the study report on the feasibility of the investment project or the project on the utilization of assets and infrastructure of road traffic.

Best regards!

Key word: toll collection | in Vietnam | cancellation of toll collection | suspension of toll collection | road toll collection |

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