The provincial People's Council passed the funding measure during its 24th session, as part of a broader VND3.246 trillion ($125 million) project at Phu Cat Airport.
The remaining VND1.5 trillion ($57.7 million) will come from increased central government revenue, according to the investment decision.
The project, set to run from 2025 to 2028, will be overseen by the provincial transport project management board.
Officials said the new runway aims to support civilian air traffic while allowing the original runway to remain available for military use.
It will also be designed to serve military operations when needed.
The runway and related infrastructure will be built to accommodate Code C aircraft, including the Airbus A320 and A321, and will be capable of handling Code E aircraft as required.
Construction is scheduled to begin on August 19.
Binh Dinh chairman Pham Anh Tuan said most of the concrete slabs on the existing runway are cracked, posing safety risks from potential debris.
Repairs would require closing the airport for at least six months, disrupting both military operations and local tourism.
The new runway is expected to ensure continuous operations for both civil and military aviation.
Bao Anh - Tan Luc / Tuoi Tre News