Chinese group proposes $3.5 bln infrastructure investment in central Vietnam province

Pacific Construction Group, a Chinese infrastructure developer ranked among the world’s Fortune Global 500 companies, is seeking to invest at least $3.5 billion in transport, urban and industrial infrastructure projects in the central province of Dak Lak.

Provincial leaders on Thursday held talks with a delegation from the company (CPCG) to discuss potential cooperation and investment opportunities in local infrastructure development.

At the meeting, Yan Jiehe, founder of CPCG, said the group is interested in investing in areas aligned with its strengths, including transport infrastructure, urban area development, irrigation works, and industrial parks.

If cooperation is approved, the group's total investment in Dak Lak over the next five years would be no less than $3.5 billion, implemented under models such as EPC and PPP, integrating construction with long-term operation and maintenance, he said.

CPCG expressed particular interest in two major transport infrastructure projects in the province: the Dak Lak-Phu Yen Expressway (CT.23), which has an estimated investment of VND30.98 trillion ($1.18 billion), and the western section of the North-South Expressway (the Pleiku-Buon Ma Thuot-Gia Nghia part) passing through the province.

In response, Ta Anh Tuan, Chairman of the Dak Lak People’s Committee, said he welcomes the group’s interest and highly values potential investment in key sectors such as transport infrastructure, urban area development, and industrial zones. He noted that these sectors are crucial drivers for the province’s development in the coming years.

According to Tuan, the western section of the North-South Expressway running through the province falls under the authority of central government agencies. If CPCG wishes to pursue the project, Dak Lak would help provide the necessary information so the company could work with relevant authorities.

Meanwhile, the Dak Lak-Phu Yen Expressway is currently being studied under a public-private partnership (PPP) model. The project is considered important for improving connectivity between the Central Highlands and Vietnam’s south-central coastal region.

Tuan said he welcomes capable investors to study and propose suitable investment plans for the project in accordance with regulations.

Regarding the possibility of signing an MoU, the provincial chairman noted that the two sides’ technical teams should continue working on details to ensure compliance with Vietnamese legal procedures before any formal agreement is signed.

Phu Yen and Dak Lak provinces were merged last July to form the new Dak Lak which borders Gia Lai, Khanh Hoa, Lam Dong, Cambodia, and the East Sea.

Founded in 1986, Pacific Construction Group is one of the world’s leading infrastructure developers. The company ranks among the world’s 500 largest enterprises and is one of China’s 19 largest private conglomerates.

The group holds top-tier contractor qualifications in highways, urban area development, irrigation works, and civil and industrial construction. It has participated in the development and management of more than 1,000 cities and over 3,000 urban areas and industrial zones worldwide under various cooperation models including BT, BOT, EPC, and PPP.

In Vietnam, the company previously signed an MoU with the Hanoi government for the 2023-2027 period with a total proposed investment of more than $5 billion. The cooperation includes several major infrastructure projects such as Tu Lien Bridge, Ngoc Hoi Bridge, and Hanoi Metro Line 5.