Tracodi, the construction-infrastructure subsidiary of Bamboo Capital, and Thanh Tuan Atesco, a major developer of urban areas and industrial parks, are planning major infrastructural works after striking a strategic partnership.
Per the cooperation agreement signed Wednesday, the two companies will seek opportunities in developing infrastructure-civil-industrial projects including embankments and ports. They will bring their core strengths to bear on all feasible projects that come up.
Tracodi, listed on the Ho Chi Minh Stock Exchange (HoSE) as TCD, boasts 33 years of experience in infrastructure construction, stone mining, trading of industrial and agricultural products, and labor export services.
It is among a few contractors with a top-tier license, which speaks to its capacity and capability in joining large-scale traffic infrastructure projects.
As a subsidiary of Bamboo Capital (HoSE: BCG), Tracodi has been the contractor for many luxury real estate projects of its sister firm BCG Land, including King Crown Infinity, Malibu Hoi An, and Hoian d'Or.
It has also undertaken large energy projects of BCG Energy, another sister firm, like BCG Long An 1 and 2, BCG Vinh Long, and BCG Phu My power plants.
The company has also built and put into operation a 24-kilometer section of the BOT Provincial Highway 830 in the Mekong Delta province of Long An.
Furthermore, it is carrying out pre-feasibility studies on some transport infrastructure projects in the Mekong Delta and southeastern region.
Meanwhile, Thanh Tuan Atesco has nearly 20 years of experience in providing machinery, equipment and vehicles in the fields of construction and infrastructure investment. It has constructed many infrastructure-civil-industrial projects, embankments and ports in many provinces and cities across the country.
Some of its notable projects include the water supply system, sewage system and traffic infrastructure within the 153-hectare Cat Lai urban area in Thu Duc city, Ho Chi Minh City; infrastructure for the Tien Phuoc urban area in HCMC, infrastructure for the high-rise Marina Tower in the southern province of Binh Duong; infrastructure for the An Phu-An Khanh urban area in Thu Duc city, HCMC; the Huu Thanh Industrial Park in Long An province; expansion and upgrade of Pleiku town-Bridge 110 section of National Highway 14; and infrastructure for the Nhon Hoi Economic Zone in the central province of Binh Dinh.
An important context for the collaboration between the two companies is the government’s aim to speed up public investment disbursement for many expressway projects and inter-regional roads to strengthen connections and create socio-economic development breakthroughs in many localities.
Transport infrastructure development in the Mekong Delta and southeastern regions is of particular interest for both sides.
The need to complete an expressway network connecting the Mekong Delta with the southeastern regions is emphasized by Politburo Resolution No. 13 on orientations for socio-economic development and ensuring national defense and security in the Mekong Delta until 2030, with vision until 2045.
The Mekong Delta region has put up 13 transport infrastructure projects with a total investment of more than VND35 trillion ($1.45 billion) to be implemented and completed in the 2021-2025 period. Twelve other road projects will be build at a total cost of more than VND100 trillion ($4.13 billion).
By 2025, the region aims for about 460 kilometers of expressways, bringing the total number of expressway length to about 550 kilometers. In the 2026-2030 period, it will complete another 637 kilometers with an estimated capital of over VND200 trillion ($8.26 billion).
This is a huge opportunity for businesses with capacity and experience in the field of transport infrastructure construction like strategic partners Tracodi and Thanh Tuan Atesco.
Quarry ownership
Tracodi holds a special advantage as owner of the Antraco quarry in An Giang province, which is the only such facility in the Mekong Delta that meets expressway construction standards. The quarry has total reserves of up to 26.8 million cubic meters and a mining capacity of 2.2 million cubic meters per year. This ownership will help Tracodi and its strategic partners reduce construction costs as well as shorten rock transportation time.
In 2024-2027, Tracodi plans to implement more projects in the two regions with a total investment of over VND7.4 trillion ($305.85 million). These include a VND3.94 trillion road serving North-South economic development axis in Soc Trang province; a VND3 trillion road in Duc Hoa district, Long An province; and a VND500 billion project to build an inland port and port logistics service area in Soc Trang.
Well prepared
With many large-scale projects to be implemented in the next five years, Tracodi has been aware of the need to develop human resources, capital and technical solutions quickly to improve construction capacity.
It has prepared the resources needed to seize the opportunities arising from the government's priority orientation for public investment.
Strengthening cooperation with reputable, experienced and capable partners in the field of infrastructure construction such as Thanh Tuan Atesco is an important part of its development strategies.
With modern machinery, equipment and experience in building residential areas, infrastructure, and industrial parks in many provinces and cities across the country, Thanh Tuan Atesco will be a reliable partner.
Speaking at the signing ceremony establishing a strategic partnership, Tracodi chairman Nguyen Thanh Hung said: "We believe that this cooperation will contribute to promoting the growth of both parties in many aspects, enhancing the potential, strength and prestige of both Tracodi and Thanh Tuan Atesco on the development path ahead."
For his part, Nguyen Van Tuan, deputy CEO of Thanh Tuan Atesco, said: “Tracodi is a reputable partner with experience and good capacity to approach and join bids for large-scale infrastructure projects. Thanh Tuan Atesco boasts strengths of owning modern equipment and machinery, always completing projects on schedule with high quality and ensuring labor safety. We believe that this cooperation will be an important milestone in the development of both companies."