The Provincial Government of Khanh Hoa has announced plans for a 4.3 km tunnel project along Tran Phu Street in central Nha Trang to reduce traffic congestion in Vietnam. With an estimated investment of USD250 million, the Tran Phu Tunnel has been listed as a key public investment project and will be executed in two phases, spanning over 15 years.

Phase one, scheduled from 2025 to 2040, involves constructing a 1.4 km tunnel section from 86 Tran Phu Street to Nguyen Chanh Street, including open-cut ramps and dual entry points. Phase two, planned post-2040, will extend the tunnel by 2.9 km to Nguyen Binh Khiem Street. The design includes four traffic lanes, two maintenance lanes, and dedicated pick-up/drop-off bays every 250–500 metres. The project is intended to promote green mobility, support tourism, and may be funded through ODA loans and concessional financing.