Two major builders in fray for HCMC-Trung Luong expressway expansion

By Duc Tri
Sat, July 23, 2022 | 4:03 pm GMT+7

Soon after the municipal transport department proposed that the HCMC-Trung Luong Expressway, which connects the city with the Mekong Delta provinces of Long An and Tien Giang, be expanded from four to eight lanes, two major builders - Deoca and Cienco 6 - have entered the project investor race.

The first one is a consortium comprising the Civil Engineering Construction Corporation No.6 (Cienco 6), Coteccons Construction JSC (HoSE: CTD), and Thuan Viet Trading And Construction Co., Ltd.

Coteccons is well-known as the construction contractor of many major projects in the country including: Viettel headquarters in Hanoi; VinFast automobile complex in Hai Phong; Landmark 81 in HCMC - Vietnam's highest building; and Aeon Mall Long Bien.

It has proposed that the Ministry of Transport let it conduct the pre-feasibility and feasibility studies with its own funds. In case the reports are not approved, the consortium will pay for all the study costs.

Trung Luong-My Thuan Expressway. Photo courtesy of Dautu newspaper.

Trung Luong-My Thuan Expressway. Photo courtesy of Dautu newspaper.

Another potential project investor is the Deoca Group, a construction heavyweight in Vietnam. Deoca has proposed that the project be implemented under the public-private-partnership (PPP) format, with the contract carried out as a build-transfer-lease (BTL) project.

The group proposed a toll collection mechanism for the first phase in order to source finance for the second phase. The project is set to be completed by 2025.

It estimates investment for the expansion at VND5,355 billion ($228.8 million), including VND2,650 billion (nearly 50%) from the state budget. The state will phase out payment for project expenses over 10 years (after the first phase of toll collection).

The HCMC Department of Transport has proposed that the expressway be widened from four to eight lanes to handle the surge in traffic on the road.

It suggests that the expansion allows the maximum speed to increase from 100 km to 120 km per hour.

The 62 km expressway with four lanes was put into operation 10 years ago. It was the first expressway to connect HCMC to nearby provinces of Long An and Tien Giang and has now been burdened with traffic overload, which is serious during holidays or weekends.

According to the approved planning for HCMC, the city's traffic system features five expressways with the total tracks of 276.9 km and two ring roads with the length of 287 km. As of now, only two expressways, namely HCMC-Trung Luong and HCMC-Long Thanh-Dau Giay, and a part of Ring Road No.3 with the length of 131 km were open to traffic.

Comments (0)
  • Read More
Former Party chief, chairman of Vinh Phuc province face disciplinary action

Former Party chief, chairman of Vinh Phuc province face disciplinary action

Vietnam’s Central Inspection Committee has proposed disciplining Pham Van Vong, former Party chief of Vinh Phuc, and Phung Quang Hung, former chairman of the northern province, for violations related to Phuc Son Group.

Politics - Mon, November 18, 2024 | 9:17 pm GMT+7

Shaping a waterway into a key shipping channel: Viconship gets dredging nod

Shaping a waterway into a key shipping channel: Viconship gets dredging nod

A major dredging project will allow safer ship navigation and increased cargo transportation capacity on the Hai Phong shipping channel, thereby enhancing competitiveness of Vinconship’s port system, says the company.

Companies - Mon, November 18, 2024 | 7:08 pm GMT+7

Former assistant to State President appointed general director of state-owned financial firm HFIC

Former assistant to State President appointed general director of state-owned financial firm HFIC

Truong Tuan Anh, an official at the State President Office and former assistant to a state president, has been appointed general director of Ho Chi Minh City Finance and Investment Stated-owned Company (HFIC).

Companies - Mon, November 18, 2024 | 5:35 pm GMT+7

MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch

MBBank’s takeover of weak OceanBank to have limited impact on its credit profile: Fitch

Military Commercial Joint Stock Bank's (MBBank) takeover of Ocean Commercial Bank Limited (OceanBank) will have limited financial impact on the former’s credit profile, Fitch Ratings said Monday.

Banking - Mon, November 18, 2024 | 5:06 pm GMT+7

Win-win philosophy indispensable for sustainable growth: Bamboo Capital founder

Win-win philosophy indispensable for sustainable growth: Bamboo Capital founder

A win-win cooperation strategy is not just desirable, but a necessary condition for sustainable development, says Nguyen Ho Nam, founder of Vietnam’s private conglomerate Bamboo Capital Group.

Bamboo Capital - Mon, November 18, 2024 | 4:46 pm GMT+7

Vietnam central bank resumes selling gold after 1-month hiatus

Vietnam central bank resumes selling gold after 1-month hiatus

The State Bank of Vietnam (SBV), the country's central bank, on Monday announced that it will reactivate the sale of SJC-branded gold bars to meet market demand.

Banking - Mon, November 18, 2024 | 4:02 pm GMT+7

Vietnam 2nd biggest market of Thai giant Central Retail in Jan-Sept

Vietnam 2nd biggest market of Thai giant Central Retail in Jan-Sept

Thailand’s leading retailer Central Retail earned a revenue of THB37.99 billion ($1.09 billion) in Vietnam in the first nine months of this year, up 0.9% year-on-year.

Companies - Mon, November 18, 2024 | 4:00 pm GMT+7

Singapore firm to invest in $19.7 mln garment factory in central Vietnam

Singapore firm to invest in $19.7 mln garment factory in central Vietnam

Singaporean-based HGQ ASIA Pte., Ltd will pour nearly VND500 billion ($19.7 million) into building a garment factory in the south-central province of Binh Dinh.

Industries - Mon, November 18, 2024 | 2:23 pm GMT+7

IP developer KBC to raise $236 mln to restructure debts, augment capital

IP developer KBC to raise $236 mln to restructure debts, augment capital

Kinhbac City Development Holding Corporation (KBC), a leading industrial real estate developer in Vietnam, will offer 250 million shares to 11 investors for more than $6,000 trillion ($236.4 million) to restructure its debts.

Companies - Mon, November 18, 2024 | 2:17 pm GMT+7

Vietnam's chemical giant Vinachem targets $500 mln trade turnover with Brazil in 2030

Vietnam's chemical giant Vinachem targets $500 mln trade turnover with Brazil in 2030

Vietnam’s state-run chemical group Vinachem and Brazil’s major trading firm Oceanside One Trading LLC say they will strive to boost their bilateral trade to $500 million in 2030.

Companies - Mon, November 18, 2024 | 12:32 pm GMT+7

Vietnam may welcome more FDI from US allies in Trump 2.0: broker

Vietnam may welcome more FDI from US allies in Trump 2.0: broker

More companies from U.S. allies and elsewhere may move more production facilities to Vietnam in the second term of Donald Trump as U.S. President, given the expected intensification of U.S-China trade tension, according to KB Securities Vietnam (KBSV).

Economy - Mon, November 18, 2024 | 12:19 pm GMT+7

Vietnam PM asks Brazil's aerospace giant Embraer to help with air logistics development

Vietnam PM asks Brazil's aerospace giant Embraer to help with air logistics development

Vietnam seeks to build an air logistics center and plans to collaborate with Brazil’s aerospace giant Embraer for the task, says Prime Minister Pham Minh Chinh.

Companies - Mon, November 18, 2024 | 10:45 am GMT+7

Singapore-domiciled TAEL Two Partners struggles to divest from Vietnam taxi operator Vinasun at loss

Singapore-domiciled TAEL Two Partners struggles to divest from Vietnam taxi operator Vinasun at loss

Singapore-headquartered fund TAEL Two Partners has planned to divest entirely from Vietnamese taxi operator Vinasun at a heavy loss after more than a decade of investment.

Finance - Mon, November 18, 2024 | 10:19 am GMT+7

Vietnam's opportunity in a shifting global EVs market

Vietnam's opportunity in a shifting global EVs market

The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.

Companies - Mon, November 18, 2024 | 10:00 am GMT+7

Vietnam, Brazil elevate bilateral ties to strategic partnership

Vietnam, Brazil elevate bilateral ties to strategic partnership

Vietnam and Brazil issued a joint statement on elevating their bilateral relations to a Strategic Partnership in Rio de Janeiro on Sunday (local time) on the occasion of Prime Minister Pham Minh Chinh’s ongoing trip to the Latin American nation to attend the G20 Summit and join bilateral activities.

Politics - Mon, November 18, 2024 | 8:11 am GMT+7

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

The Investor to host seminar on removing legal bottlenecks for infrastructure, property investment

A seminar themed “Removing legal bottlenecks for infrastructure and property investment” will be organized by The Investor in Hanoi on Tuesday.

Economy - Mon, November 18, 2024 | 7:52 am GMT+7