Vietnam firms Tracodi, Vidifi join hands in expressway management

Bamboo Capital Group subsidiary Tracodi and Vietnam Infrastructure Development and Finance Investment JSC (Vidifi), the operator of multiple expressways across the country, have joined hands to invest in infrastructure and expressway management.

Under an agreement signed on Tuesday, Tracodi and Vidifi will share experiences and establish a legal entity for managing, operating, maintaining, and collecting tolls from expressway projects. The entity will also seek out opportunities in bidding for expressway management and implementing infrastructure projects.

Vidifi is the investor in the famous Hanoi-Hai Phong Expressway, along with hydropower and infrastructure projects.

Tracodi, traded on the Ho Chi Minh Stock Exchange (HoSE) as TCD since 2017, was formerly a state-run enterprise. It became a subsidiary of the private Bamboo Capital Group in 2015, in charge of infrastructure development.

With a charter capital of VND2.44 trillion ($104.04 million), annual revenue of VND3 trillion ($127.71 million), and total assets of VND10 trillion ($425.71 million), Tracodi holds a Class-one certificate in road building, Vietnam’s highest class for this type of construction, showing its competency in joining national infrastructure development projects.

Notable projects implemented by Tracodi include the taxiway at Phan Thiet airport in the central province of Binh Thuan; an urban area and lake in Hiep Hoa district, the northern province of Bac Giang; and a road connecting National Highway 3 to Vo Nguyen Giap street in Hanoi.

From 2024-2027, Tracodi is set to start work on the Go Dau-Xa Mat Expressway in the Mekong Delta province of Tay Ninh; the Duc Hoa-Duc Hue Road in the Mekong Delta province of Long An; and provincial road No. 935 in the Mekong Delta province of Soc Trang. Other notable ones are realty projects, including King Crown Infinity in Ho Chi Minh City, Malibu Hoi An and Hoian d'Or in the central province of Quang Nam, and large-scale projects run by Bamboo Capital.

Speaking at the signing ceremony, representatives of both firms said that infrastructure provides many opportunities as the government pushes public investment. The cooperation can help the two firms utilize each other's strengths to benefit stakeholders.

This year, Tracodi has set a target of making VND3.3 trillion ($141 million) in consolidated net revenue, a year-on-year increase of 13%, and over VND267 billion ($13.39 million) in consolidated after-tax profit, down 20%.

In Q1/2023, the company recorded revenue of more than VND314 billion ($13.36 million), and after-tax profit of VND68 billion ($2.89 million), equivalent to 10% and 25% of the year's targets, respectively.

Bamboo Capital Group closed Tuesday's trading session up 2.7% at VND8,750 ($0.37).