VietNamNet Bridge - Many key projects in Vietnam with big problems in quality were implemented by Chinese contractors.

The word ‘Chinese contractors’ has become ‘sensitive’ to Vietnamese. Any decision by local authorities or state management agencies to let Chinese contractors implement infrastructure projects would face strong opposition from the public because Vietnamese people have lost confidence in Chinese contractors.

A report released by the National Assembly’s Finance and Budget Committee in 2014 showed that 90 percent of EPC projects (engineering, procurement, construction) are undertaken by Chinese contractors. These include 30 national key projects.

Many key projects in Vietnam with big problems in quality were implemented by Chinese contractors.

Many of the projects have been going at a ‘snail’s pace’ despite warnings from Vietnamese management agencies. 

The Cat Linh – Ha Dong elevated railway project is a typical example. Kicked off in October 2011, the project was initially scheduled to be put into operation in November 2013. However, no one now can say for sure when the project implementation will be completed.

The slow implementation, plus some changes in the design, have pushed the total estimated investment capital of the project from $552.86 million to nearly $900 million.

The Chinese contractor in late April reported that the project had been going slowly because of the lack of drawings. Many completed construction items have been removed because they did not fit the design.

The project on expanding the Thai Nguyen iron and steel mill still cannot be completed though it started 10 years ago because the money has run out. Initially capitalized at VND4 trillion, the investment capital has increased to VND8 trillion

The Chinese contractor has ‘abandoned’ the project, leaving workshops, machines and equipment lie in the open air under the sun and rains. This is estimated to cost the loss of VND30 billion a month.

The Chinese contractors at many large thermopower projects, namely Duyen Hai 1, Duyen Hai 3, Vinh Tan 2, expanded Uong Bi No 2, Hai Phong 1, Hai Phong 2, Quang Ninh 1 and Quang Ninh 2 reportedly ‘frightened’ Vietnamese investors when threatening to leave the projects’ sites.

Most of the projects have been several years late in comparison with the initial plans.

Delays and slow project implementation pace are not the only concern. Chinese contractors have become well known for poor construction and installation quality.

The $69 million My Dinh National Museum, which became operational in September 2003, has shown serious degradation. Cracks appeared on the wall, while the athletics run way could not be exploited. Tens of billions of dong have been spent to fix the problems. 

The government inspectors have discovered that the Chinese contractor signed outsourcing contracts with sub-contractors at very low prices to be able to pocket millions of dollars.


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