Korean, Chinese companies on list of low-quality contractors

Vietnam is in need of quality contractors for the nation's infrastructure network

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In Decision No. 1614/QD - BGTVT dated June 1, 2017, on ranking contractors in 2016, the Ministry of Transport (MoT) announced the assessment results of 474 contractors that have participated in transportation projects funded by state budget in the country.

MoT's published results are based on information provided by main investors and project management units.

The assessment criteria were based on actual on-site scenarios, such as mobilisation of capital and equipment, capability of meeting requirements on project progress and quality, work safety, payment and acceptance procedures, and project maintenance.

Amongst these 474 contractors, 453 contractors (95.65 per cent) meet the standards required and 21 contractors were in the “average” group, accounting for 4.4 per cent.

The top of the list of all contractors that meet the standards, most names are very familiar in the construction field, such as Civil Engineering Construction Corporation No. 4 Ltd. (Cienco 4), Thang Long Group, Truong Son Construction Corporation, Vietnam Waterway Construction Corporation (VINAWACO), Van Cuong Construction United Co., Ltd.

As for the “average” group, these contractors usually made four to six errors per package or eight to 20 errors in total.

Amongst the 21 contractors that were listed as “average,” there are many Korean contractors, including Posco, Lotte, Samwhan, or Doosan. Most of these Korean contractors have made several errors while implementing the Danang - Quang Ngai Expressway project.

Lotte made five errors in Package A1 and five more in Package A4. Posco made five errors in Package A5.

Vietnam Expressway Corporation, the main investor of Danang-Quang Ngai Expressway, said that they had to replace Posco Project Manager for Package A5 and Lotte Project Manager for package A4 because they could not meet their required standards.

Chinese contractors, such as China Railway Construction Corporation Ltd. (CRCC), or Guangxi Road and Bridge Construction Company Ltd. are also on the list. China Railway Construction Corporation Ltd. made four errors in mobilising equipment, overall progress, detailed progress, and work safety at the Cat Linh-Hadong metro line in Hanoi.

Within the “average” group there are also Vietnamese names, such as Thanh An Corporation, Construction Corporation No.1 JSC, Thang Loi Group Company Ltd.