Former Minister of Transport (MOT) Ho Nghia Dung says that the moment one can look back to enjoy a glory, Deoca Group Joint Stock Company (Deoca) looks forward to begin a new journey with comprehensive restructuring. What Deoca did yesterday is the stature of the investor that could be understood by people going through Deoca, Co Ma, Cu Mong, Hai Van 2 tunnels and Bac Giang - Lang Son, Chi Lang - Huu Nghi expressways. Mr. Dung believes that Deoca will contribute valuable works to the country in the future.

Fate with Deoca Group

Interviewer: After leaving the "hot seat" of the Minister of Transport to retire, what causes you to delay the rest to attach to Deoca Group as a senior advisor?

Former Minister Ho Nghia Dung: I and Deoca Group are a fate. In the 2000s, traffic in the Central faced many difficulties and Deoca was one of the hot spots for traffic accidents and jams. It can be said that in the years 2008 - 2009, all investment problems of the transportation sector were very difficult, the capital for infrastructure development was mainly ODA and a very small part of the State budget as a counterpart fund of ODA projects. Private capital was virtually absent. Foreign investors did not pay much attention to transport infrastructure projects because they found that the efficiency from the projects was not high.

In 2008, a group of investors including Hanoi Construction Corporation, Mai Linh Group and Hai Thach Group JSC came to me and asked for registering a study on Deo road tunnel project. They invested, hired consultants from France to review, started making project proposals in the form of pre-feasibility. I realized that they worked seriously and made good investment plans. Furthermore, there were no more investors interested in the project at the time, so I proposed the Government to allow the joint venture of these investors to be the project owner.

In 2011, I retired and at that time the project was unfinished. Realizing that I was still in good health and of sound mind, I wanted to share my knowledge and experience of transport to young people where possible. Deoca was then one of the companies I was very interested in and supported. On the contrary, Deoca also needed my support and advice, especially in the early stages of difficulty.

In addition, I always believed in project implementers, in particular, Mr. Ho Minh Hoang (Chairman of Deoca Group's Board of Directors), who were outstandingly determined, willing, and aspirational persons. Up to the present time, my judgment is completely right.

Interviewer: As a person who has a good understanding of the field of transport, when working as an advisor for the project, was your advice consistent with the direction of the Group's leaders?

Former Minister Ho Nghia Dung: In general, it was very convenient because they attached great importance to the advice of the advisory board, experts. I played the role of giving advice and the leadership of Deoca was completely autonomous, creative in their decisions, so there were no obstacles.

I appreciated the scientific operation of the Group. It is noteworthy that they have gathered a professional, multi-disciplined, experienced consultant team and a young and enthusiastic working team.

Restructuring

Interviewer: How do you evaluate the thought of “Purposefulness - Orientation - Quantification” of BOD Chairman Ho Minh Hoang to start restructuring?

Former Minister Ho Nghia Dung: I must affirm that I understand thoroughly and agree with Ho Minh Hoang's thoughts. In particular, in term of “Purposefulness”, from the beginning I always shared, emphasized to Mr. Hoang that a business of course had to be profitable but it had to serve the community and the society. That is “Purposefulness” in my opinion.

“Orientation” is a strategic development orientation for a Group. I only advised the Group in specific periods. For me, doing anything aims to obtain specific results. For example, the goal of building Deoca Tunnel is to construct the first tunnel by the Vietnamese with good quality, etc. Strategic direction for each stage of development is a platform to see another development step, paving the way for sustainable development.

“Quantification” is the digitization of works into specific figures by addition, subtraction, multiplication, division to reduce cost towards to the better quality of next works than previous ones.

Interviewer: How do you evaluate the time of restructuring the Group? Especially after the successes of the past journey?

Former Minister Ho Nghia Dung: First of all, it is necessary to understand that restructuring means continuous change, continuous innovation from investment, personnel organization, finance, etc

I followed Deoca Group from the very first days and realized that they were innovating almost every year. In previous years, innovation, change occurred in the process of working and when they found what was unreasonable or what was necessary to change immediately. But this year, restructuring is performed methodically, comprehensively, reasonably, theoretically and practically.

Restructuring at this time is completely reasonable. Firstly, in the context that the country is restructuring the economy from widely to deeply and from quantitatively to qualitatively develop in association with sustainable development. The enterprise is a part of this economy, so it also needs to change according to the strategy of the whole country.

Secondly, the enterprise has reached certain development steps, achievements and is heading to a higher development step requiring restructuring. However, this change is not a complete change but must inherit all the achievements and successes in the previous period. I call it “Inheritance and Development”.

Interviewer: In the Restructuring Meeting in Hanoi in late August 2018, you contributed many valuable ideas to this project. In your opinion, what are the advantages of the restructuring project?

Former Minister Ho Nghia Dung: The Restructuring Project is relatively comprehensive, covering all areas of operation of an enterprise: personnel organization, investment, finance and corporate culture. It sets forth a detailed development plan of the enterprise in the future. After restructuring is completed, what I expect is that the Group will create more modern and high value products to best serve the community and society.

Future of Deoca

Interviewer: After Deoca, Cu Mong, Hai Van and now we have gone to the North with Bac Giang - Lang Son, Huu Nghi - Chi Lang projects, etc, so according to you what is the key factors of making Deoca's success until today?

Former Minister Ho Nghia Dung: One key factor is the determination of the people, especially the head - Chairman Ho Minh Hoang. Recalling a little, when implementing Deoca project, Mr. Ho Minh Hoang was just over 30 years old and only owned an unknown provincial level enterprise but dared to conquer Deoca. Not all business leaders have such will.

The second factor is the talent of Mr. Ho Minh Hoang shown in the art of “raising capital and using capital”. At that time, Vietinbank provided credit to the project, but then Mr. Ho Minh Hoang made Vietinbank become both a partner and a companion (both as a supplier and an investor).

More importantly, Mr. Hoang mobilized capital from the contractor in new Huu Nghi - Chi Lang expressway project (both equity and contractor’s capital).

The skillful capital use of Deoca’s head was shown by that the investment capital of many other transport infrastructure projects continually exceeded, even doubled the initial estimate, but the investment capital for projects undertaken by Deoca project is all the time within the control. The company has reduced VND 4,000 billion of government bond capital given to Deoca project to use for the new projects of Cu Mong and Hai Van.

The third factor is the way of using human resources. The Group knows how to mobilize human resources, which is shown by owning a team of highly qualified advisors, experts, officials and employees. This is called the art of using human resources. It is much easier to deploy any work with a lot of talents.

Interviewer: As a person with much experience in management, in your opinion, what are the advantages and difficulties of Deoca in coordinating and cooperating with the current state authority system?

Former Minister Ho Nghia Dung: As a private enterprise, Deoca has full power to take the initiative within its scope: flexible organization apparatus. During operating, all decisions are made independently without outside interference, from the selection of partners: Banks, contractors, etc to the financial autonomy. Competent State agencies are very interested and support Deoca because of the reputation created and shown by Deoca in the last time.

Interviewer: What is your opinion about the development of Deoca in the future?

Former Minister Ho Nghia Dung: Looking back on the made journey of Deoca Group from the early days of the investment idea to the reality of the works completed on schedule with assured quality. The journey made by Deoca is truly a “speedy” but powerful and stable development. I fully believe that Deoca will successfully complete the projects in progress. Deoca, Cu Mong, Hai Van and then Bac Giang - Lang Son and Huu Nghi - Chi Lang expressways will be valuable and specific contributions to the development of the country. From Deoca Tunnel - The largest BOT project to one of the largest transport infrastructure BOT Groups in the country. Deoca will certainly maintain that brand and go further.

Sincerely thank you!

Nguyen Quang Thanh