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

The requirements on financial capability and experience that contractors must have for the north-south expressway project are out of reach of domestic enterprises.

According to the Ministry of Transport (MOT), the project management unit has issued 120 dossiers to select investors for eight component projects, including 26 domestic and 14 foreign investors.

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



In mid-July, MOT will finalize the list of investors registering to join the project and then begin selecting contractors in accordance with the criteria.

Vu Duc Nhan, deputy CEO of Phuong Thanh, which is managing the Phap Van – Cau Gie highway, said his company wants to attend the bid, but finds it difficult to compete with foreign investors.

In mid-July, MOT will finalize the list of investors registering to join the project and then begin selecting contractors in accordance with the criteria.

 

He said few Vietnamese investors can satisfy the requirements on capability and experience. Contractors, for example, have to have stockholder equity equal to 20 percent of the project’s capital. If noting that a component project is capitalized at VND5-10 trillion, the stockholder equity that an enterprise must have would be at least VND1 trillion.

Besides, enterprises must have experience in executing projects with similar scale. Vietnamese enterprises have executed only large-scale projects recently such as Ha Long – Van Don and Bac Giang – Lang Son, so they don’t have much experience.

Another big difficulty for Vietnamese contractors lies in the access to bank loans. Commercial banks now tend to tighten lending or lend at high interest rates to BOT projects.

Bank loans have an interest rate of over 11 percent on average. Meanwhile, some BOT projects have revenue lower than initially estimated.

Deputy chair of Deo Ca Group Tran Van The also said domestic investors want to contribute to the construction of the north-south expressway, but with the requirements set by MOT, the opportunities for domestic investors are not high.

The projects they executed in the past must be at least equal to 50 percent of the scale of the north-south expressway, or VND4-5 trillion.

“Very few enterprises had opportunities to join such large projects,” he said.

Asked why Vietnamese enterprises don’t think of joining other investors to satisfy the requirements, he said the cooperation will have enough capital but experience will still be a problem. Moreover, it is not easy to find partners.

Le Dang Doanh, a respected economist, said a policy on allowing domestic enterprises to implement the north-south expressway project should be developed. And criteria should be set that is favorable for domestic enterprises to join others to win the bids.

Xuan Thuy

Preliminary bidding selects 51 investors for North-South Expressway

Preliminary bidding selects 51 investors for North-South Expressway

Fifty-one investors have been selected in the preliminary bidding for seven public-private partnership (PPP) projects for the North-South Expressway.  

S. Korean, Chinese investors dominate tenders for North-South expressway subprojects

S. Korean, Chinese investors dominate tenders for North-South expressway subprojects

Tenders for building three sections of the North-South Expressway project have attracted a total of 27 investors, including 18 firms from South Korea and China.  

 
 

Other News

.
Vietnam’s economy will recover after lockdown is lifted: WB economist
Vietnam’s economy will recover after lockdown is lifted: WB economist
BUSINESSicon  15/09/2021 

Vietnam’s economy will recover on the back of solid growth achieved in the first half of 2021 after the lockdown is lifted, Dorsati Madani, Senior Economist at the World Bank (WB) Vietnam, has said.

Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
BUSINESSicon  16/09/2021 

The 18th China-ASEAN Business and Investment Summit (CABIS) was held on September 10-11 in Nanning, Guangxi, China.

HCM City seeks VND17.2trn from state budget for key urban projects
HCM City seeks VND17.2trn from state budget for key urban projects
BUSINESSicon  15/09/2021 

HCM City has sent an urgent request to the Ministry of Planning and Investment for a VND17.2trn (USD753m) state fund allocation during the 2021-2025 period to complete three key projects in the city.

Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
BUSINESSicon  15/09/2021 

The US Department of Commerce (DOC) has announced the preliminary results of the 17th period of review (POR17) for the period from August 1, 2019 to July 31, 2020, regarding Vietnam’s tra and basa fish (pangasius) exported to the US.

Local specialties plummeting in price
Local specialties plummeting in price
FEATUREicon  16/09/2021 

While Phu Yen lobster prices are surging, VND100,000 per kilogram more expensive than the previous crop, other aquatic specialties including ca lang (hemibagrus) and hau sua (oyster milk) have seen prices plummet, causing big losses for farmers.

Vietnam earns over $1 billion/day in 15 days in August
Vietnam earns over $1 billion/day in 15 days in August
BUSINESSicon  15/09/2021 

In the last 15 days of August 2021, Vietnam’s exports grew strongly compared to the first 15 days of the month.

HSBC maps out two scenarios for Vietnamese economy until year-end
HSBC maps out two scenarios for Vietnamese economy until year-end
BUSINESSicon  15/09/2021 

HSBC has forecast two scenarios for Vietnam’s economy until the end of the year, with both of them focused on the re-opening of the economy, albeit in a cautious and systematic way.

Mobile money to bridge service divide
Mobile money to bridge service divide
BUSINESSicon  15/09/2021 

While telecommunications firms keep a wait-and-see stance on SMS service charge reductions despite mounting worries from banks. 

Vietnam Railway Corporation asks for VND800bn loan to maintain operation
Vietnam Railway Corporation asks for VND800bn loan to maintain operation
BUSINESSicon  15/09/2021 

The Vietnam Railway Corporation (VNR) has proposed to borrow VND800bn (USD35m) to maintain operations.

Vietnam’s imports of Chinese agricultural products rise sharply
Vietnam’s imports of Chinese agricultural products rise sharply
BUSINESSicon  15/09/2021 

In the past eight months, imports of China's agricultural, forestry and fishery products to Vietnam increased by 50.3% over the same period last year.

Vietnam’s consumer markets expected to grow by US$130 billion over next 10 years
Vietnam’s consumer markets expected to grow by US$130 billion over next 10 years
BUSINESSicon  15/09/2021 

Consumption in Vietnam could grow by US$130 billion over the next decade as Asia continues to be the world’s consumption growth engine, a new report from McKinsey has revealed.

Businesses wait for bank debts rescheduling
Businesses wait for bank debts rescheduling
BUSINESSicon  15/09/2021 

A week after the State Bank of Vietnam issued Circular 14 on debt rescheduling to alleviate the difficulties faced by businesses due to the COVID-19...

VIETNAM BUSINESS NEWS SEPTEMBER 15
VIETNAM BUSINESS NEWS SEPTEMBER 15
BUSINESSicon  15/09/2021 

Aviation stocks see gains on ease of restriction measures

When the two 'locomotives' restart at the same time
When the two 'locomotives' restart at the same time
FEATUREicon  14/09/2021 

Contributing about 45% of the country’s GDP, HCM City and Hanoi are considered the two engines pulling the national economy. Both must be healthy and go hand in hand to revive the pandemic-hit economy.

Post-pandemic economic recovery plans in the pipeline
Post-pandemic economic recovery plans in the pipeline
BUSINESSicon  14/09/2021 

The Ministry of Planning and Investment (MPI) plans to submit its economic recovery project to competent authorities for approval in October, with the 2022 to 2023 period to be identified as the ideal time for recovery efforts.

Consumers warned against buying Chinese mooncakes with no clear origin, quality
Consumers warned against buying Chinese mooncakes with no clear origin, quality
BUSINESSicon  15/09/2021 

Mooncakes with no clear information about origin, manufacturer names or quality are being sold at surprisingly low prices. Consumers have been advised to be cautious when buying mooncakes online.

Plan to re-open Vietnam’s aviation market revealed
Plan to re-open Vietnam’s aviation market revealed
BUSINESSicon  14/09/2021 

The plan to restore the domestic air transport market, developed by the Civil Aviation Authority of Vietnam (CAAV), has been divided into three phases.

VIETNAM BUSINESS NEWS SEPTEMBER 14
VIETNAM BUSINESS NEWS SEPTEMBER 14
BUSINESSicon  14/09/2021 

Vietnam needs additional 1 million ICT personnel by 2030

Vietnamese billionaire enters $10 billion pork, animal feed market
Vietnamese billionaire enters $10 billion pork, animal feed market
BUSINESSicon  14/09/2021 

After successfully entering the fish sauce market, billionaire Nguyen Dang Quang has invested in two segments with high potential: the US$10 billion pork and animal feed market.

Decree for Fintech sandbox to be submitted in Q4
Decree for Fintech sandbox to be submitted in Q4
BUSINESSicon  14/09/2021 

The Government has issued a resolution to create a sandbox for financial technology (Fintech) in the country’s banking sector.

 
 
 
Leave your comment on an article

OR QUICK LOGIN