'My destination is on the horizon': Deo Ca Group chairman

More than six years ago, when the Deo Ca, Cu Mong, and Co Ma tunnels were opened to traffic, you were dubbed the “tunnel king”. After the opening of the Hai Van tunnel (tube 2) and most recently the Thung Thi tunnel on the North-South Expressway, your reputation as the "tunnel king" has grown further. What are your thoughts on this?

First of all, let's talk about the “tunnel king” title. That is a nickname given to me by journalists. I never claimed that title for myself because it doesn't bring any real value. For me and Deo Ca Group, what we care about is doing our best for society, shareholders, and businesses.

What do I feel? I feel that in a short period of time, just over 10 years, we have accomplished a tremendous amount of work. We have completed the tunnels of Co Ma, Deo Ca, Cu Mong, Hai Van 2; Bac Giang-Lang Son Expressway; Trung Luong-My Thuan Expressway, and completed packages for major projects on the North-South Expressway and projects in various different locations.

Of course, we take pride in these achievements as they serve as motivation for us to continue working tirelessly. Through these projects, we have contributed to the overall development of the transportation industry, bringing greater safety and convenience for the people.

With what we have accomplished during our time in the industry, with our expertise, experience, machinery and equipment, and financial resources constantly developing and improving through our governance strategy of "growing within our own capabilities," we continue to be entrusted with many large projects and major contracts on the North-South Expressway. Many localities invite Deo Ca Group to study, propose, and implement projects for them. It's a lot of pressure. The pressure to meet expectations and to maintain our reputation. But Deo Ca Group is no stranger to pressure; we take on the work to build relationships and we are confident in the path we are taking.

Tunneling technology through mountains is no longer new to you. Have tunneling projects become smoother, faster and cheaper?

We implemented the road tunnel project through the Ca pass (Deo Ca in Vietnamese) using the New Austrian tunneling method (NATM) technology from Austria. But during the implementation process from the Ca, Cu Mong, and Hai Van passes to the tunnels we have built on the North-South Expressway project, the technology has been improved with new innovations. These tunneling innovations help shorten the time and reduce costs. They are regularly reviewed and updated, becoming a construction handbook for Deo Ca Group.

The geology in different tunnel projects varies, so no tunnel excavation method is the same. Each tunnel through a mountain is a new challenge that requires innovation and improvements to conquer it.

In the bidding package for the Vung mountain tunnel of the Cam Lam-Vinh Hao Expressway project, we faced a significant challenge from metamorphic rock formations. This unstable geology was not reflected in the reports or documents from the project consulting unit. Overcoming many obstacles, in August, Deo Ca Group successfully excavated through the mountain.

We are currently working on the construction of Tunnel No. 3 for the Quang Ngai-Hoai Hon project, which is over three kilometers long. It is expected to take 36 months, with an additional six months for completion. The tunnel excavation was made possible by innovative ideas that increased the number of excavation faces from four to six. We were able to overcome difficulties in construction caused by the prolonged rainy season in the south-central region, which lasted for four months.

However, Deo Ca Group does not stop at being a leading expert in road tunnel excavation. We have also built expressways, sea-crossing bridges, and are currently studying and learning to master cable-stayed bridge technology, and high-speed railways. In order to do new things, we must improve on what we have already done and look at transportation technologies being applied worldwide to organize internal training, invest in machinery and equipment, and collaborate in applying suitable technologies.

What other mountain tunnel projects are currently being considered?

We are participating in the bidding for the Dong Dang-Tra Linh project. The project is expected to start at the end of this year. Dong Dang-Tra Linh in Cao Bang province is a project that connects to the border area. Cao Bang has up to 95% of ethnic minority people. The feasibility study shows that it is a very low traffic route with a huge investment. Hoang Xuan Anh, chairman of the Cao Bang provincial People’s Committee, said that for many years, domestic and foreign businesses have "come and gone". Based on practical experience, we have chosen an optimal solution for the direction of the route, invest in phases, and reduce the total investment.

This is a project that we feel responsible for, as a Vietnamese business, towards our revolutionary homeland, the border land. We have reported our merits to Uncle Ho many times at his memorial in Pac Bo. We have pushed the responsibilities of the State, investors, and banks to successfully implement this road connecting the developed region to the less developed, lifting Cao Bang out of poverty.

This is one of many projects that we will carry out. Deo Ca Group is receiving more and more invitations to study, propose, and implement projects. We have to make a choice.

With a large workload, how to manage our operations, how to build partnerships, and how to overcome shortcomings in the implementation process are all challenges in the context of many obstacles in mechanisms and policies. It is important to clarify and create consensus on strict and subjective views of a portion of the population regarding Public Private Partnership (PPP) investment.

For me, the destination is always on the horizon. Sometimes, stumbling does not occur in front of the mountains blocking the way, but rather in front of the pebbles on the road. Therefore, it is necessary to both work and seek adjustments to find a suitable approach for the country's needs.

Along with road tunnels, you have succeeded in constructing highways. Which is more difficult, tunneling or building highways?

As mentioned above, tunneling through mountains, building highways, constructing sea bridges, and even high-speed railways, every field is challenging and requires human resources, technology, and strategy. Tunneling through mountains is a special project, but in the overall project, it is just one component.

For the Quang Ngai-Hoai Nhon project, we have applied technology. We have proactively prepared for the aforementioned components.

The construction of road tunnels, highways, and sea-crossing bridges has placed you at the forefront of infrastructure development investors in transportation. However, along with that comes the concern of increasing loans for investment. What is your comment?

On social media, several articles have been posted reflecting the fact that many infrastructure companies are currently borrowing long-term loans in the trillions, even tens of trillions of Vietnamese dong, from commercial banks.

There is nothing that comes without a price. Investing in infrastructure requires big money. Before the PPP Law, BOT projects had no state capital. Currently, with the law in place, state capital accounts for 50% but no investors are interested. This shows us that implementing a project was more difficult in the past. The fact that businesses raise funds from credit institutions or other sources to invest in infrastructure is a natural truth and in line with current regulations as well as international practices. It is normal for businesses investing in transportation infrastructure to have debts with banks. The commitments and obligations to repay debts from transportation projects are still being fulfilled and ensured. Banks provide loans for road construction, and once completed, the toll fees flow back to the banks on a daily basis.

So what is there to worry about?

The PPP model is an appropriate solution to mobilize resources in the context of limited state funding. Even in developed countries, investment in construction through mobilizing social resources has been very successful. Therefore, in order for the public to understand the true nature of the debt story, it is not only the responsibility of investors but also the responsibility of state management agencies, law enforcement agencies, and banks, among others.

Many people call you a courageous investor. What is this down to?

I made statements about "daring to think, daring to do, daring to take responsibility" at a panel discussion on "Fear of Responsibility" organized by Tuoi Tre (Youth) newspaper in collaboration with the National Political Publishing House. Ultimately, my answers to this question are the same as what I expressed during that panel discussion.

First of all, it is the courage to think. Starting from deep concern when I was still a university student, witnessing the tragic traffic accidents on the Ca pass, I was determined to implement the Ca pass road tunnel project to provide traffic safety. With a strong vision and determination, we completed the project, not only solving the traffic safety issue but also having significant implications for the development of life, economy, culture, and society for the central provinces in particular and the country as a whole.

Following that spirit of "courage to think", we have "rescued" projects that have been stalled for many years. During the implementation process, we actively invited citizens, inspection agencies, even investigative agencies to look into what we were doing. We dare to think about management models, investment models, and dare to raise issues with competent authorities such as ministries, sectors, and localities while making recommendations to adjust mechanisms and policies that are inadequate to solve difficult problems in projects that have been stalled for many years.

The second is "daring to do". With well-founded and scientifically based thinking, along with consulting many advisors, experts, and scientists, we boldly "dare to do". First, we dare to undertake difficult projects. We dare to criticize flawed policy mechanisms.

The third is "taking responsibility". Whether in the role of an investor or a construction contractor, we are always aware of our responsibility towards State agencies, shareholders, people, partners, and workers in the spirit of upholding the law.

Can you reveal some plans for the near future?

From 2023-2025, our focus will be on construction and participation in bidding for high-speed projects, airport roads, suspension bridges, promoting partnerships with foreign contractors to carry out international projects, and a railway tunnel project.

Deo Ca Group continues to innovate in road tunnel drilling technology, actively collaborating with major companies worldwide to access construction technology in the railway and metro sectors, collaborating on projects in Singapore and Indonesia, and gradually mastering TBM technology in preparation for investment and construction in Vietnam in the near future.

Alongside expanding the scale of construction activities, we are promoting investment in transportation infrastructure projects through PPP to provide regular employment opportunities, financial returns from investment, and stable operational management in the near future.

Deo Ca Group continues to research new expressway projects such as Ho Chi Minh City-Chon Thanh, Belt Road 4 in Ho Chi Minh City, Trung Luong-My Thuan Phase 2, and a tourist road connecting Dong Hoi city with the Phong Nha-Ke Bang National Park World Heritage Site.

Regarding training, Deo Ca Group and Ho Chi Minh City University of Transport have established the Deo Ca Training and Research Institute, which was scheduled for launch at the end of September. It will be a place to train and provide high-quality human resources for society, as well as a reputable provider of scientific and technological services in the field of transportation in Vietnam and the region.