Infrastructure builder Deo Ca must be a 'durable horse' for the long road: chairman 

Ho Minh Hoang, chairman of Deo Ca Traffic Infrastructure Investment JSC (HoSE: HHV), a leading transport infrastructure developer in Vietnam, said the company should not seek overnight expansion but instead pursue disciplined and sustainable long-term growth.

“HHV is not Saint Giong, who transforms into a giant overnight,” Hoang said at the company’s 2026 annual general meeting on Friday. “The company must be a durable horse for the long road, with strength, direction, discipline and the ability to go far,” he added.

The remarks came as HHV, a subsidiary of Deo Ca Group, reaffirmed its strategy of “focused growth,” emphasizing selective expansion rather than diversification into unrelated sectors. The company said it would continue concentrating on investment, construction and operation management in transport infrastructure while strengthening its brand position within the broader Deo Ca Group ecosystem.

A key message at the meeting was the company’s emphasis on disciplined growth and risk control, avoiding short-term expansion at the expense of long-term safety.

Hoang said corporate governance sometimes requires the courage not only to continue projects, but also to halt them when risks exceed acceptable levels.

He cited the Red River Scenic Boulevard and Tan Phu-Bao Loc projects as examples where HHV and Deo Ca had invested significant resources in research and preparation but ultimately chose not to proceed due to concerns over legal conditions, financing structures and risk-sharing mechanisms.

“If you only look at project scale without considering legal issues, cash flow, capital sources, risk-sharing mechanisms and execution capacity, opportunities can quickly become burdens,” Hoang said.

“We do not avoid difficult projects. Deo Ca and HHV always choose difficult tasks, but they must come with appropriate mechanisms, resources and financial structures that create real value,” he added.

“We do not use shareholders’ money for adventures, nor do we gamble the Deo Ca and HHV brands on projects that lack sufficient conditions for success.”

HHV reported consolidated revenue of more than VND3.8 trillion ($144.17 million) in 2025 and after-tax profit of over VND671 billion ($25.45 million), up 15% and 36%, respectively, from a year earlier and exceeding shareholder-approved targets.

The company also highlighted a more favorable policy environment following the government’s issuance of Decree 122/2026/ND-CP aimed at addressing obstacles facing build-operate-transfer (BOT) transport projects.

According to HHV, the decree signals that the government is listening more closely to market realities, sharing risks with investors, and gradually restoring confidence in infrastructure investment.

Looking ahead, HHV said it plans to strengthen its financial capacity to participate in larger and more technically demanding projects with longer payback periods.

The company is considering a range of funding options, including raising equity capital, partnering with strategic investors, securing medium- and long-term loans, issuing financial instruments, and pursuing business cooperation contract (BCC) structures.

Hoang stressed that capital mobilization was not intended to expand at any cost, but rather to support projects capable of generating “real assets, real cash flow and real value” for shareholders.

“Shareholders have the right to expect HHV to grow, but they also have the right to demand safe growth,” he said.

“Management must treat capital like the lifeblood of the company: it must circulate properly, without leakage or creating pressure that weakens the body.”

In the near term, HHV said it would prioritize completing ongoing projects while continuing to study opportunities under public-private partnership (PPP), BOT and BT models.

The company said project selection criteria would focus on core transport infrastructure sectors such as bridges, tunnels and expressways, with transparent mechanisms, feasible financing plans, controllable risks and long-term cash flow generation.

HHV also identified infrastructure operation management as a critical source of stable and sustainable cash flow underpinning its long-term investment and construction activities.

The company said it has built a competitive advantage in this segment through early preparation, experienced personnel and operational expertise, particularly in road tunnel and expressway management.

“Operational management may appear simple from the outside, but in reality it requires high professionalism, strong organizational capability, safety assurance, incident response and maintenance expertise,” HHV management said.

The company plans to further modernize the segment through greater technology application and service quality improvements.

For 2026, HHV targets consolidated revenue of nearly VND4.47 trillion ($169.47 million), up 18% from 2025, while after-tax profit is projected to rise 14% to VND766 billion ($29.05 million).

On the Ho Chi Minh Stock Exchange (HoSE), HHV shares closed Friday a VMD11,950 ($0.45) apiece.