Dual feats of private sector prowess

Deo Ca Tunnel not only creates a breakthrough in Phu Yen province’s development, it also proves that Vietnamese companies are capable of work of this magnitude

Before 2013, the name Deo Ca (Ca Pass) was often associated with dangerous road conditions, tragic accidents, and long traffic jams caused by natural disasters.

The situation saw a complete turnaround in July 2017 as travellers were able to experience a newfound peace of mind when the mountain received the attention of DEOCA Group.

Five years after the first drill was put into Ca Pass, which connects Khanh Hoa and Phu Yen provinces, Cu Mong ­Tunnel – connecting Phu Yen and Binh Dinh provinces on the south-central coast – was also worked on by the group.

Cu Mong Tunnel opened for use in January, around 18 months after the inauguration of Deo Ca Tunnel. Both works were completed ahead of schedule compared to the Ministry of Transport’s (MoT) approved plan by nearly four months. Construction time was ­shortened thanks to the high construction quality as ­appreciated by the State Appraisal Council.

By “conquering” Cu Mong Tunnel, the Deo Ca workers have completed a hat trick on a period of tunnel digging from Khanh Hoa to Binh Dinh, proving that Vietnamese private companies can also have the competence to invest in large-scale construction works. The footprint left by Deo Ca workers comes to nearly 500 kilometres, from Phu Yen to Danang’s famous Hai Van Pass.

Efficient planning

From a financial perspective, not only ensuring the right investment decision, the project – which was under the command of general director Ho Minh Hoang – helped save more than VND2 trillion ($86.96 million) for transfer to other projects.

Cu Mong Tunnel was also completed ahead of schedule, bringing great joy to the people of Binh Dinh and Phu Yen. The last pass of the central region has been completed, prolonging the north-south arterial path. However, the thinking and strategic vision of Hoang continued to conquer new heights – expanding Hai Van Tunnel branch 2.

Hai Van Pass, the longest mountain pass in Vietnam, is also at the highest level above the sea, sitting as the most sinuous bend of passes in Central Vietnam. It was built 13 years ago with Japanese official development assistance.

This time the expansion of Hai Van’s second tunnel branch, which does not utilise foreign loans, has leveraged the resources of DEOCA Group with the total capital fund of nearly VND7.3 trillion ($317.4 million).

Not only that, beyond the road tunnel construction, DEOCA Group is committed to executing all other types of transport works, with the ultimate target of building ­arterial highways for the country. In particular, Bac Giang-Lang Son ­Expressway combined with the Huu Nghi-Chi Lang route, with the total length of 110.2km and investment reaching VND12.2 trillion ($530.43 million), is now under intensive construction in order to keep up with the schedule in 2020.

Mobilising private capital

Looking on the development journey of DEOCA Group, Hoang said, “For us, this is considered as a time full of important milestones. It is five years of overcoming many challenges in the ­construction site and 10 years of showing the ­determination to make the dream come true for the ­people of DEOCA Group.”

“The Deo Ca Tunnel project is not only a fulcrum to facilitate traffic and goods circulation between Phu Yen and the two neighbouring provinces of Khanh Hoa and Binh Dinh, it also motivates and extends regional trade links,” Hoang added.

Above all, it is the strong resolution and commitment of the Party and the state to push up the national transport infrastructure development. As infrastructure development contributes to building the economic foundation of the country, each of DEO CA Group’s major milestones in its development journey were met by recognition by the Party and the state.

The expression of Hoang mirrors the mind of a private company wishing to contribute to national development, sharing investment resources to reduce public investment in light of Resolution No.13-NQ/TW of the Party Central Committee on infrastructure construction, in accordance with Prime Minister Nguyen Xuan Phuc’s orientation and assessment last February at the meeting reviewing the implementation.

In fact, by mobilising diverse social resources, after only a few years, many localities have benefited from large-scale projects run by powerful private businesses such as Sun Group, Vingroup, and T&T Group, employing cutting-edge technologies across the country through public-private partnership and build-operate-transfer investment formats.

According to Tran Dinh Thien, director of the Vietnam Institute of Economics, the impressive economic growth of Vietnam in recent years was contributed by a large part by the private sector. Resources from the private sector have been playing an important role, especially in locations with low public investment.

Visiting the Deo Ca Tunnel project, PM Phuc underlined the special meaning of the first road tunnel construction completed by a local private company. According to the PM, the Deo Ca Tunnel project is the pride of the whole country, which is why he asked officials, engineers, and workers of DEOCA Group to continue ensuring smooth operation and management of the project.