North-south expressway: Chinese contractors account for majority

While Japanese contractors are absent, many Chinese enterprises have registered to attend the bids for eight component projects of the north-south rail expressway project.

Sixty dossiers registering to attend the bids to implement the component projects have been submitted for shortlisting, according to the Ministry of Transport’s (MOT) Project Management Unit.

North-south expressway: Chinese contractors account for majority



Of these, 30 are from China and joint names of Chinese and Vietnamese contractors. Fifteen dossiers are from South Korean, French and Philippine investors. Meanwhile, there are only 15 dossiers from Vietnamese enterprises.

Chinese investors include the China Railway Construction Group and its subsidiaries such as China Railway Construction Investment Group Co. and China Railway 21st Bureau Group Co.

According to Nguyen Danh Huy from PPP Department of MOT, Vietnam is a member of WTO, and according to its rules, all member countries must not be subjected to discriminatory treatment.

 The investors, joining forces with Vietnamese enterprises, want to implement the Nghi Son – Dien Chau, Dien Chau – Bai Vot, Nha Trang – Cam Lam, Cam Lam – Vinh Hao, Vinh Hao – Phan Thiet and Phan Thiet – Dau Giay projects.

 


The other Chinese enterprises have applied to implement other highway projects.

Vietnamese enterprises are parties in joint names of contractors, but are led by Chinese. In the joint name of China Railway Construction Corp., China Railway Construction Investment Group Co. and Vietnamese Tasco JSC, which wants to implement the two Nghi Son – Dien Chau and Dien Chau – Bai Vot projects, for example, the leader is China Railway Construction Corp.

According to a senior official of MOT, most Chinese investors have excellent stockholder equity and capital at low interest rates (0-2 percent).

According to Nguyen Danh Huy from PPP Department of MOT, Vietnam is a member of WTO, and according to its rules, all member countries must not be subjected to discriminatory treatment.

“International bids will be organized to select capable investors to implement the projects under the mode of PPP,” he said. “Therefore, it is quite normal that investors from China are interested in the north-south expressway project."

He went on to emphasize that what the public is concerned about is quality and project progress.

“We follow the Bidding Law, so we do not distinguish between domestic and foreign investors,” he said.

Observers noted that Japanese and European investors have not registered to implement the north-south rail expressway projects, though many Japanese and European investors attended the international investment promotion conference, organized by MOT.

An expert said these investors showed interest in issues related to revenue guarantee, credit guarantee and exchange rate.

“Investors always weigh risks and profit, and we cannot say exactly why they didn't register to implement the projects. We guess that their interests cannot be satisfied,” he commented.

Chinese investors have an advantage in that they can mobilize capital in China at low costs, and don’t need a revenue guarantee.

Linh Ha

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North-south expressway out of reach for Vietnamese because of requirements

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