During his inspection on May 23, Deputy Prime Minister Nguyen Hoa Binh visited the construction sites of the second facilities for Viet Duc Friendship Hospital and Bach Mai Hospital in Ha Nam province.

He was joined by leaders from the Ministry of Health, Ha Nam province, and officials from the Ministries of Finance, Construction, Public Security, and the Government Inspectorate.

Construction delays and funding gaps

According to the Ministry of Health, these are two of five major hospital projects approved under Decision No. 125/QD-TTg (January 16, 2014), aimed at building new central and top-tier hospitals, primarily in Ho Chi Minh City.

While three of the five projects have been completed and are in use, these two projects were stalled from January 1, 2021, due to various obstacles.

At the time of suspension, Bach Mai’s second facility had completed 97.8% of its contracted value, with 57.2% of the total allocated capital disbursed.

Viet Duc’s second facility had reached 86.3% completion, with 55.7% of capital disbursed. Together, the two projects require an additional 3,917 billion VND (approx. 154 million USD) to complete.

The Ministry has since issued Plan No. 256/KH-BYT (February 26, 2025) to resume the projects under Government Resolution 34/NQ-CP. The plan sets clear timelines and assigns specific responsibilities to relevant units.

Each project comprises five construction packages: (1) main hospital construction, (2) infrastructure, (3) waste and wastewater treatment (by AIC-Mofa), (4) IT systems (by VNPT-CIDTT), and (5) general equipment. Some contractors are responsible for executing packages across both hospitals.

Main construction for Bach Mai is handled by 36-319-Thanh An Corp., and for Viet Duc by Hanoi-Hong Ha Construction Corporation. Equipment installation is managed by Furtech-Xuan Hoa (Bach Mai) and Phu Hung–Company 190 (Viet Duc). Except for Thanh An, which is behind schedule, all contractors are reportedly meeting deadlines.

The Ministry of Health has also revised the list of medical equipment and approved procurement plans for Bach Mai’s second campus. Preparations are ongoing for procurement at Viet Duc’s second campus, with a goal of full installation by the end of 2025.

Both hospitals have drafted detailed operational proposals, including workforce plans, financial models, and management mechanisms.

Funding, inflation, and legal hurdles

Challenges include delays in estimating and approving costs for electromechanical systems, with Viet Duc lagging 45 days and Bach Mai 75 days behind schedule. Bank credit access has tightened following an Inspectorate report, and suppliers are wary, often demanding full prepayment due to project risks. Additionally, inflation has significantly raised costs for materials and labor.

The Ministry of Health has called on the Ministry of Construction to expedite budget assessments and the Ministry of Finance to adjust the 2021–2025 funding plan. The State Bank is also urged to direct credit institutions to support contractors in resolving cash flow issues.

Clear directive from central leadership

After listening to reports from relevant ministries, Deputy PM Binh emphasized that these are crucial, high-investment projects with strong public expectations. With investment per hospital bed estimated at 5 billion VND (around 196,000 USD), delays of six to seven years have led to significant waste and degradation of partially completed facilities.

“The delay is a disservice to the people,” he stated. “We must overcome these limitations and finish the hospitals this year, as directed by the Politburo and General Secretary.”

Deputy PM Binh noted that while legal violations must be dealt with accordingly, the projects themselves are not to blame. “The infrastructure must be completed, used, and not abandoned,” he said. “Investment must continue lawfully, transparently, and without new violations.”

Focus on quality and operational readiness

He urged swift but careful progress to ensure quality and avoid future waste or misconduct. Design consulting was undertaken by VK Company (Belgium), but unresolved contractual payment issues remain. He instructed the Ministry of Health to address these immediately.

Efforts must be made to fast-track the medical equipment procurement process to ensure infrastructure ("the shell") and equipment ("the core") progress in tandem. Hospital leadership must also develop detailed training and staffing plans to ensure medical services at the new campuses match the standards of Bach Mai and Viet Duc in Hanoi.

“These must not become ‘Bach Mai type 2’ or ‘Viet Duc type 2’ in terms of quality,” he warned.

“Completing these projects is a politically significant mission,” Deputy PM Nguyen Hoa Binh stressed. “We must approach it with the highest responsibility and determination to finish by the end of the year.”

VGP