The road will be built in two phases. The first phase will see a 25-metre-wide, four-lane highway being built, with the second expanding it into a 35-metre, eight-lane expressway.

When completed, the expressway will help reduce the distance from HCM City to Ba Ria-Vung Tau by 20 km, easing the pressure on National Highway No. 1 A.

It will also enable construction of the planned international airport in Long Thanh District, and exploitation of Thi Vai and Cai Mep Ports in Ba Ria-Vung Tau.

Deputy Minister of Transport Ngo Thinh Duc and Asian Development Bank officials reached an agreement earlier this week.

ADB will provide a loan of $410.2 million while $516.5 million will be borrowed from the Japan Bank for International Co-operation.