From the initial estimated total investment of USD 1 billion, after Deo Ca Tunnel project has been completed, the actual amount is reduced to only about 600 million USD.

Mr. Ho Minh Hoang

Deo Ca Group is a pioneer in the field of mountain tunnel projects investment in Vietnam. At present, Deo Ca is the biggest transport infrastructure investor in the country when holding many key transport projects: Deo Ca Tunnel, Cu Mong Tunnel, Co Ma Tunnel, Hai Van Tunnel 2, Bac Giang - Lang Son Expressway, Trung Luong - My Thuan expressway … with total investment of over 2 billion USD.

On the occasion of the 45th anniversary of the Liberation of the South and the Reunification of the country, Traffic Newspaper has an interview with Mr. Ho Minh Hoang, Chairman of Deo Ca Group.

The trust is the greatest difficulty

After more than ten years in the field of transport infrastructure investment, Deo Ca has been investing in many important projects. If to choose, what is the project you like the most?

All of Deo Ca Group projects is important and have great significance to me, so I'm afraid it's a bit difficult for me to choose most favorable one. However, Deo Ca tunnel project is where I and my colleagues began to engage. Now, the name of Deo Ca has been present in all the works spread across the country, and the beginning is always the most memorable.

At the tunnel project through Ca mountain, we created a product “made in Vietnam” when quickly receiving the world's modern tunnel digging technology. It was also a transformation of us to adjust the management model from the old cooperative into Deo Ca Group.

Through this project, many leaders of Deo Ca Group of 7X, 8X generations who have been honed and cultivated with the guidance of experienced advisors, now mature and effectively contributed to the development of the Group.

As you said, Deo Ca Tunnel is the work that made the name of Deo Ca Group. However, at the beginning, many people said that investing in this project with a total investment of nearly USD 1 billion in the form of PPP by domestic investors is an unrealistic idea, some even say it's crazy. Can you share why Deo Ca chose this project to invest?

After graduating from university, I had some small business successes in my hometown Phu Yen, but the pain of seeing many catastrophic accidents on Ca pass motivated me to realize the idea of tunneling through Ca mountain.

Through researching the implement method of successed BOT and PPP projects in the world, when implementing must ensure the technology and financial solutions. But the most important thing is how to prove the feasibility with the State agency to understand, from understanding to believe, from believe to assign the implement responsibility.

We learned the foreign NATM tunneling technology and mastered it. We have mobilized capital, construct trust for the shareholders and banks, control quality, safety and optimize total investment capital by technical solutions.

From the initial estimated total investment of USD 1 billion, after Deo Ca tunnel project was completed, the amount is reduced to only about USD 600 million.

From being thought to be crazy, we with a difference method have successfully implemented the project, building the trust for ourselves, for the State agency and for the people to implement other difficult projects.

Being a pioneer always faces many difficulties, so when implementing Deo Ca Tunnel project, what is the biggest difficulty, sir?

The biggest difficulty is trust. Because the PPP investment model at that time was something too new, Deo Ca was too young and inexperienced to prove the ability to make such a great works.

As soon as the issue of making Deo Ca tunnel was raised, many skeptics, even many insiders still shared with me that they agreed on the project investment policy but it was like: “Oh, I just agree to the policy but I know it can't be done!”.

After all, Deo Ca with specific arguments and convincing figures, proving the feasibility of the project to obtain the Ministry of Transport's approval of the policy to implement the project, then convinced a domestic bank assessed the project credit.

Without difference thinking, will not dare to do

After the success of tunnel projects on National Road 1, in recent years, Deo Ca continues to participate in two large-scale expressway projects are Bac Giang - Lang Son and Trung Luong - My Thuan. Previously, both of these projects have faced many difficulties and obstacles, old investors were bogged down. Why Deo Ca did not choose new expressway projects in stead of the difficult task of rescuing these two projects, sir?

Beside investing in mountain tunnels, we want to challenge ourselves in other transport infrastructure projects, finding a way for private businesses instead of finding an escape - a sad reality today. We determined that easy-to-invest constructions would be difficult to access because of interwoven relationships and the tendency of underestimating private enterprises.

I know many State Hero enterprises have a lot of Medals, certificates of merit that maybe we have never had, but we got other more meaningful joys are the praise of the people and leaders for creating true value for society through our products.

The award that Deo Ca is pursuing is the recognition of society with “Vietnam Aspiration” by conquering dangerous passes, congested roads and removing the inadequate policies to bring happiness to Vietnamese people and country.

Deo Ca's slogan is: “Think different; Make difference”. Could you tell about the reason to choose this slogan for your Group?

In the current difficult context, if enterprises do not have difference thinking, they will not dare to do, if can not create differences, they cannot compete. Our greatest asset is “real value”, Deo Ca's breakthrough is “increasing real value”.

The demand for infrastructure investment of the country is still very large, especially the expressway system. Can you tell us about the upcoming projects of Deo Ca Group?

The biggest project of Deo Ca has to implemente is to remove the policy’s obstacles. Through international PPP integration, I hope that the BOT investment environment in Vietnam will reduce shortcomings, create a fair playing field for businesses, so that investors and citizens are satisfied when using utility services that are worth the effort and money you spend.

Thank you, sir!

By Dinh Quang