Ethnic enterprises in the journey of a strong Vietnam

16/04/2024     1274

Huu Nghi - Chi Lang border gate expressway project has just selected a joint venture investor. DEOCA Group continued to win the bid and assumed responsibility as the investor of this project.

3D perspective of Huu Nghi - Chi Lang project.

However, just like when implementing Deo Ca, Hai Van 2, Trung Luong - My Thuan tunnels, or "rescuing" Bac Giang - Lang Son, there are doubts about capacity and self-reliance. Mr. Ho Minh Hoang - Chairman of DEOCA Group, once again affirmed: "Doubt will be the fulcrum for us to grow, and the result will be the most accurate answer".

So, what does DEOCA have when building the Huu Nghi - Chi Lang border gate expressway?

Desire to engage, doubt is the driving force

After nearly 40 years of building and growing from the provincial cooperative model and 15 years of entering the field of transportation infrastructure, DEOCA Group has made its mark by completing many projects across the North and South, " "A thousand beginnings are difficult" with a particular tunnel project across Deo Ca. Recalling the time when Mr. Ho Minh Hoang and his colleagues proposed this project, Former Minister of Transport Ho Nghia Dung shared that he could not help but be surprised when a young man in his 30s, from Phu Yen to Hanoi walked entering the Minister's office, confidently expressed his burning desire to build Deo Ca tunnel.

But not many people believe, even thinking that the desire to have a road through Dai Lanh range is "crazy". Then 4.2 km of Deo Ca tunnel - the first complex, large-scale cross-mountain traffic project implemented by Vietnamese people - was completed to many surprises. For nearly 7 years, Deo Ca tunnel has served more than 13 million vehicles passing through the tunnel safely and smoothly.

Panorama of the tunnel project through Deo Ca

After the chain of Co Ma, Deo Ca, and Cu Mong tunnels, they continued to engage in two projects that were in a "clinical death" situation due to the old investor's weak capacity and entangled in labor issues, the Bac Giang Expressway - Lang Son, Trung Luong - My Thuan. Overcoming doubts, overcoming adversity, a BOT project that until completion had no state capital contribution, a 64km long road as beautiful as a silk strip stretching between the mountains and forests of the Northeast after only 2 "speedy" years - until now, it is still a record for highway construction in Vietnam!

In Trung Luong - My Thuan, in the hands of DEOCA, there is a series of "zero dong investors"; only 10% of the total volume is done after 9 years of implementation. The raging pandemic, the "accident" of saltwater intrusion... were all flexibly responded to by DEOCA Group using scientific management methods, bringing 90% of the remaining work to the finish line ahead of schedule, after only 3 years.

Trung Luong - My Thuan expressway project

Later, in response to the question, "Why not wait to participate in new projects instead of taking back projects that old investors have abandoned?" DEOCA representative replied: "We do difficult projects." to contribute capacity, prestige, and responsibility to the country. If things are easy, it won't be your turn." I have to say it again and again: such a difficult project; perhaps only DEOCA dared to rush into it.

Dong Dang - Tra Linh Expressway, invested by DEOCA Group, started construction on January 1, 2024. The relationship with Cao Bang has "sharpened" since 2018, when the province's leaders invited DEOCA to re-survey a necessary highway project that had remained on paper for many years. Mr. Lai Xuan Mon - Secretary of Cao Bang admitted: "If DEOCA went to Cao Bang to do business, they would not come."

DEOCA Group commented that looking at the socio-economic benefits for the people, this locality needs to have another more convenient path. At the same time, it affirmed that implementing Dong Dang—Tra Linh is also a responsibility. Vietnamese people are responsible for being grateful to the land of revolutionary origin. During the project's groundbreaking ceremony, Prime Minister Pham Minh Chinh said, "DEOCA only with a high sense of responsibility and putting the people's interests first can promote internal strength to undertake difficult tasks."

Courage to overcome difficulties

Many large-scale projects have been completed, and many more are being undertaken. However, many challenges must be overcome to achieve that achievement and trust.

At the Deo Ca tunnel project, investors saved 4,225 billion VND, equivalent to 28% of the total project investment capital by re-surveying the alignment to avoid faults and overlaps in the terrain, reducing Short and nearly 1km long. It is not the first traffic BOT project, but this is considered a model, proven by 7 inspections by the Ministry of Construction and the State Audit, all showing that the project implementation process complies with the law, shortened progress, guaranteed quality, reduced total capital.

Tunnel project path through DEOCA.

Cam Lam-Vinh Hao, led by DEOCA as an investor consortium, is the last project in the three component PPP projects of the North-South Expressway phase 1 to sign a PPP contract, but the capital arrangement was completed first by creating the PPP+ model to diversify investment capital sources. DEOCA also proposed a plan to reduce 891 billion VND (equivalent to 10% of e-commerce) by researching the production of materials from tunneling rock sources, taking advantage of depreciated machinery and equipment, and allocating construction resources from other projects that have been completed. Diseases, material price storms, weak geology... were in turn overcome by investors through creativity and flexibility in construction.

Mr. Nguyen Thanh Hoai - Director of Project Management Board 85 assessed that the investor has good capacity and financial potential to cope despite the considerable workload and difficulties. "DEOCA is very "respectful of its promises" and determined to complete the project on time," Mr. Hoai said. Cam Lam - Vinh Hao Expressway will integrate into the national traffic artery at the end of April 2024.

99% of the work at Cam Lam - Vinh Hao expressway project has been completed.

Before DEOCA came to Dong Dang-Tra Linh, many domestic and foreign investors inquired, but they all quickly left. Using experience in previous complex projects, DEOCA proposed adjusting the route, shortening the length by 23km, reducing e-commerce to nearly 23,000 billion VND (more than 50% compared to the original plan), at the same time, proposed an investment phasing plan of VND 14,000 billion for phase 1, creating a PPP++ model to increase mobilized capital, optimize management. The project is under construction, and we are determined to open the route in early 2026.

Groundbreaking ceremony of Dong Dang - Tra Linh expressway project

To ensure efficiency throughout, DEOCA Group established a control system with three lines of defense: front check - post check - check at offices and construction sites. In addition to a team of professional security officers and a modern camera system with comprehensive 24/7 control, DEOCA considers feedback from people around the project area as a channel to monitor construction work. All activities in the organization need to be transparent to maximize benefits.

The growth rate of DEOCA Group can be seen visually by the increasing workload, requiring higher levels of management and administration, and the human resource apparatus at all levels must be strengthened in quantity and quality. This enterprise seeks to solve the "problem" of human resources by focusing on recruitment, skills training, fostering knowledge... Identifying "knowledge that creates value" and each construction site is a training ground for training. Improve the "real combat" capacity of employees.

In early 2023, 30 key DEOCA officials completed a senior executive master's training program at the National Economics University. Enterprises coordinate with Ho Chi Minh City University of Transport. Ho Chi Minh City established the Institute of Training Research, in coordination with Dong A University to prepare to establish the Institute of Practical Training. They cooperate with many units to deploy specialized training based on academic theory mixed with practical business operations, strengthening railway industry training to "get ahead" of the goal of developing railway infrastructure in the future.

Opening ceremony of the specialized training program in Railway Construction - Metro on January 15, 2024, in Ho Chi Minh City

They own their Practical Training Center. They are different when in the organizational structure, there is an Advisory Council of experienced experts who closely advise, recommend, independently criticize all movements of the Group, participating in training the next generation of young officials in the enterprise. They have a Training Department to ensure cooperation, and internal training is carried out methodically for each level of personnel and each professional field. At DEOCA, studying is to do a job, there is no such thing as learning to get a degree to report on achievements!

When work is the measure

Deo Ca tunnel is a pioneering large cross-mountain tunnel completed entirely by Vietnamese people, breaking the precedent of dependence on foreign countries, and is a "push" for the Vietnamese business community to strive to "take control of the game boldly". When many projects encountered seemingly "incurable" diseases such as slow progress, poor quality, and "over" capital, the Deo Ca tunnel project, on the contrary, became an "exemplary" BOT project” - a bright spot in the reality of investing in the construction of domestic transport infrastructure.

Co Ma tunnel.

DEOCA welcomes the attention of press agencies, who are ready to discuss and listen. Consider the press as a community monitoring channel—something that is not common in business operations. In the spirit of openness and transparency and the desire for the press to have accurate and reliable information, DEOCA Group invited journalists to directly participate in inspecting the implementation process, most notably in China. Luong - My Thuan, Quang Ngai - Hoai Nhon. Through the true reflection of the press, society can better understand the work DEOCA is doing and the aspirations it pursues.

There is this saying of DEOCA that journalists have been repeating for many years. In the first meeting to proceed with the study of the expressway to Cao Bang, Mr. Ho Minh Hoang asked: "Do Cao Bang's leaders have a tenure mindset?". The atmosphere in the Provincial People's Committee hall was silent for a few seconds. But that memorable beginning must have helped both sides better understand each other, gradually allowing the Dong Dang - Tra Linh road to take shape.

Many partners of DEOCA share the same impression of this enterprise's drastic behavior, including when working with ministries, localities, banks... During the meeting to evaluate the quality of loading materials at the Trung Luong - My Thuan expressway project, DEOCA leaders' assertion when confronting the quality management agency made the situation more tense. And then, on January 4, 2021, Trung Luong - My Thuan expressway officially opened to traffic, once again the most accurate answer for DEOCA's efforts when faced with doubt!

Mr. Ho Minh Hoang shared that he liked General Secretary Nguyen Phu Trong's article in the book "Resolutely and persistently fighting against corruption and negativity, contributing to building our Party and State today." more pure and strong" and said that "petty corruption" and "fear of responsibility" in state agencies are hindering the development of businesses.

Personally, I believe that "Dare to think - Dare to do - Dare to take responsibility" is a chain from thought to unified action. I am taking the interests of the country and the people as the ultimate benefit. Work performance is the measure. Don't be discouraged by barriers; consider it a step toward success. Maintain a strong belief in righteousness; good work will always be protected,"

Mr. Ho Minh Hoang

Chairman of DEOCA Group shared

On the journey to realizing the aspirations of a strong Vietnam, it is indispensable for ethnic businesses that dare to take on the pioneering mission, are not afraid of challenging work to affirm progress, inspire new perceptions of management operating from a national scale to each business cell. Having mechanisms and institutions based on trust in the right place is the foundation to activate, nurture and promote businesses with a national spirit.

BY HAI DUONG