Vietnam's Fecon, PowerChina ink MoU on infrastructure development partnership

Fecon, a leading Vietnamese construction and infrastructure corporation, and Power Construction Corporation of China (PowerChina), have signed an MoU on comprehensive strategic cooperation in infrastructure development.

Under the MoU, inked recently, the two sides will cooperate in key areas including urban railways, high-speed railways, urban development following the transit-oriented development (TOD) model, marine reclamation, seaports, and logistics.

The collaboration will also cover energy infrastructure projects such as LNG, nuclear power, offshore wind power, and large-scale energy storage in Vietnam and other regional markets.

Pham Viet Khoa, chairman of the board of directors at Fecon, described the signing as an important step towards realizing Vietnam’s national key projects.

Fecon is committed to leveraging its strengths in technology, human resources, and expertise to work closely with PowerChina to effectively implement projects under this partnership, he said.

A representative from PowerChina said the partnership will enable PowerChina to expand its presence in the Vietnamese market.

The MoU is not only a strategic move to enhance the position and competitiveness of both parties but also contributes to realizing the vision of developing a modern, integrated infrastructure system in Vietnam, particularly large-scale railway, seaport, logistics, and power projects.

PowerChina operates across a wide range of fields, including master planning, surveying and design, construction and installation, scientific and technological research and development, construction management, consulting and supervision, as well as the operation of hydro, coal-fired, and gas-fired power, and renewable energy projects.

PowerChina has built 2,000 kilometers of high-speed railways and nearly 1,000 kilometers of urban railways in China and other countries around the world. It has also played a role in other infrastructure sectors, including waterway ports, airports, housing, industrial parks, and waste treatment facilities.

In 2024, PowerChina, which is operating in 130 countries around the world, ranked 105th on the Fortune Global 500 list and 32nd among the Top 500 Enterprises of China.

Fecon is the first Vietnamese contractor to operate the tunnel boring machine (TBM) on the Nhon-Hanoi Station urban railway in Hanoi and the Ben Thanh-Suoi Tien, the first urban railway line in Ho Chi Minh City, southern Vietnam.

The company has participated in numerous national key projects, such as the Nghi Son Refinery, the Long Son Petrochemicals Complex, and the Hoa Phat Dung Quat 2 Iron and Steel Production Complex, along with major thermal, wind, and solar power, seaport, industrial, and infrastructure projects.

The signing took place in the context of the Vietnamese government vigorously pursuing strategic breakthroughs in the investment and development of a modern, harmonious infrastructure system, creating strong momentum for economic growth.

This includes transportation infrastructure, modern and integrated urban infrastructure, and energy infrastructure aimed toward achieving zero carbon emissions by 2050.

Deputy Prime Minister Ho Duc Phoc said at the 17th Vietnam Economic Scenario Forum (VESF) earlier this year that the government will continue to allocate resources for infrastructure development. In 2025, about VND800 trillion ($30.59 billion) will be arranged for public investment in this area.

The cabinet will also focus on energy infrastructure (including nuclear and renewable energy), industrial parks, and economic zones.