Deoca Group:

The number one brand in transport infrastructure investment

24/06/2019     408

Dong Dang (Lang Son) - Tra Linh (Cao Bang) Expressway is determined not only to be the driving force for Cao Bang's breakthrough in socio-economic development, but also to ensure its security and national defense goals. In 2016, the Prime Minister issued a Decision approving the planning on development of Vietnam's highway network to 2020, with orientations to 2030. In which, Dong Dang (Lang Son) to Tra Linh (Cao Bang) expressway with length of 144km and total investment of approximately VND 47,000 billion would be built after 2030. According to the latest information, this route would be realized by 2022. The factor to create that reality is Deoca Group, the No. 1 Brand in transport infrastructure today.

Author Vu Thien Phong’s article is printed in "Raising Vietnamese Brands” book by Dr. Nguyen Anh Tuan

From aspiration with a place called Deoca, etc

Deoca geographical name is associated with the name of the pass which is the natural boundary between the two South Central Coast provinces of Phu Yen and Khanh Hoa. It is a big and rugged mountain pass, 333m high, 12km long, passing Dai Lanh mountain range with the northern slope in Dong Hoa district (Phu Yen) and the southern slope in Van Ninh district (Khanh Hoa). If seen from the sea to Dai Lanh mountain range or from above at the top of misty Da Bia peak looking down, Deoca appears as a thin, winding road hidden and present in the green of low plants and in the silvery black of mountain rocks. Ca pass repeatedly bends like a giant snake crawling by itself, sometimes like a faint thread hanged on the slopes of mountains with one side of steep cliffs and one side of a deep abyss. Driving through here is like playing an adventure game when being a little bit absent-minded, distracted or reckless in avoid each other at ups and downs is likely to have an accident, slip past the road surface or plunge into the abyss. It is almost impossible to survive if having an accident or plunging into a cliff at Ca pass. That is not to mention, in the rainy season, rock and soil from the mountains can suddenly landslide and collapse on the road in a unforeseen way.

Engineer Ho Nghia Dung, Former Secretary of Quang Ngai Provincial Party Committee, Former Minister of Transport (2006-2011) shared: “The thinking of making roads and tunnels through Ca pass also known as Deoca Road Tunnel Project was formed from 2001-2002. In the years from 2003 to 2010, investment in national transport infrastructure was mainly funded by ODA from the World Bank, Asian Development Bank and bilateral ODA, mainly Japan and later Korea. The second capital source was from the state budget, but very little. The third source of capital was bonds. These three capital sources were essentially state-owned capital. Private-owned capital and capital from other economic sectors in transport infrastructure were very little at that time. In fact, at that time, domestic banks and domestic enterprises could not afford to invest in large transport infrastructure projects.

At the same time, the Transportation sector realized that it was necessary to mobilize all the capital sources of society because if only relying on state-owned capital, projects like Deoca and many other projects would never be implemented. Therefore, the Transportation sector made a list of projects to call for investment. This list included Deoca Road Tunnel Project. Such calls were made but businesses approached very cautiously, “necessity is the mother of invention” and there was not any great hope to open Ca pass and Cu Mong at that time.”

The time for those who are responsible for the task of resolving road traffic issues through Phu Yen was also very long. It took eight years from the idea of building a tunnel through Ca pass in 2001 for a four-party partnership legal entity to submit to the Ministry of Transport, the Government for developing a feasible study of this project. After that, Deoca Investment Joint Stock Company was established to shoulder this mission.

Deoca Brand

After much hardship and effort for the preparation, the main design of Deoca Road Tunnel Project has been formed: Deoca Road Tunnel has a total length of 13km, of which Deoca tunnel is 4125m long, the second longest tunnel in our country and Co Ma Tunnel is 500m long. Deoca and Co Ma tunnels have the same construction scale with 2 separate pipe tunnels designed according to TCVN 5729-1997 highway standard. The two tunnels run in parallel with the distance of 30m between two tunnel axes. Each tunnel is designed for one-way traffic with two lanes of 80km/h. The access road system of the project has length of 8.6km. Deoca Road Tunnel is resistant to level-7 earthquake. Thus, in terms of total length, Deoca Road Tunnel is much longer than Hai Van tunnel. The design traffic speed is higher with 80km/h compared to only 70km/hour of Hai Van Tunnel. In terms of overall design and technology, Deoca Road Tunnel is currently the most modern in our country, surpassing Hai Van Road Tunnel.

“Deoca Group: The number one brand in transport infrastructure investment” printed from page 169 of the book

Another interesting thing: Deoca Road Tunnel project was approved by the Ministry of Transport in early 2012 under BOT and BT forms with a total initial investment of VND 15,603 billion. During the design, then commencement and during the construction on the site, the detailed design continues to be adjusted. In the second half of 2013, Deoca Investment Joint Stock Company directed the survey to select the more reasonable alignment of Deoca tunnel and to avoid complexities, faults, topographic and geological and tectonic overlaps to reduce soil stabilization and overlying ground costs and shorten nearly 1km of length as well as to save up to 28% investment capital. Total investment capital for the Project until completion was only VND 11,378 billion, down by VND 4,225 billion compared to the initial estimated investment capital. Infrastructure projects normally incur additional costs during construction, resulting in an "increase" in investment capital, sometimes very high compared to the initial estimate. Deoca Road Tunnel Project was completely opposite. This was a “strange” point in the investment and construction of infrastructure in Vietnam.

Deoca Road Tunnel was completed and inaugurated on August 21, 2017 and was officially put into operation from September 1, 2017. The inauguration ceremony of Deoca Road Tunnel became a “special event”, a “big event”, reflected in the media and newspapers of the whole country. In addition to reporting this event solemnly, the mass media posted praises and evaluation on this works given by senior leaders from the General Secretary, the Prime Minister to the Ministers, Vice Ministers and local leaders, etc. At the time of completion, Deoca Road Tunnel underwent practical tests and achieved the results: The distance to go through the tunnel compared to going through the pass is approximately six tenths (shortened by 38-40%) and the time to drive through the tunnel is only nearly two-tenth driving on the pass (reduced by 80%). In the past, it took nearly an hour to cross both Ca and Co Ma passes. Now, it only takes more than 10 minutes to drive through the road tunnel, which not only saves time but also significantly saves fuel, engine maintenance cost and is especially safe. There will be no longer tragic accidents when driving through the pass and there will be no longer separation in life and parting in death, bloodcurdling deaths as in the past, etc.

When put into use, Deoca Road Tunnel has a great socio-economic impact not only on Phu Yen, Khanh Hoa and related provinces but also provides special values, lessons learned in the field of investment, development of key national transport infrastructure.

After the inauguration of Deoca Road Tunnel, Deoca Investment Joint Stock Company has grown up in prestige and experience like Phu Dong with appellations, names: “The biggest road tunnel investor in Vietnam”, “The most pioneering and professional transport infrastructure investor”, “King of Vietnam road tunnel”.

The most important thing is that this is a modern road tunnel entirely invested, designed and constructed by Vietnamese people. Vietnamese people have completely mastered key national transport works. In April 2018, Deoca Road Tunnel was honored and ranked as a “Typical construction project of Vietnam”.

A new generation of owners has made remarkable creation, overcome many big challenges to gather intellects, talents and resources to make the project. A team of design and construction engineers and a team of skilled tunnel workers have grown dramatically after completing this century project.

From the successful operation of the project, Deoca Investment Joint Stock Company has equipped its teams with extremely valuable experiences to simultaneously solve three major issues:

Firstly, the selection of techniques and technologies for key and large-scaled projects ensures safety and sustainability over time. Deoca Road Tunnel is designed with two parallel pipe tunnels to increase vehicle speed. One-way traffic in each pipe tunnel creates piston-like ventilation, which eliminates rough and turbulent winds, saving the construction cost of the ventilation system. According to calculations, this design actually saves up to 40% the cost of handling ventilation and electrostatic precipitation, saves the cost of building a rescue system when one tunnel can be used as a rescue tunnel of the other by connected sub-tunnels and at the same time increases traffic speed up to 80km/hour. It is the mastery of Vietnamese people which is very practical and economical has become a breakthrough of choosing the most appropriate design and technology.

Secondly, financial and investment plan ensures construction and resolves the efficiency of capital recovery. Solving the problem of the financial and investment plan has great significance when turning this key national transport project into completely Vietnamese one by domestic investment, domestic capital, Vietnamese administration and construction resources. Deoca Road Tunnel was directed and fully mastered by Vietnamese people from the first stage to the completion and putting into operation. The foreign consultants and supervisors were hired by Vietnamese people, etc

Thirdly, learn experience and lessons in mobilizing and gathering intellects and human resources to run and implement the project. Deoca Road Tunnel Project not only attracted leading individuals, experts but also attracted a crowded team of experienced construction units from Hoa Binh hydropower project, Hai Van road tunnel and many other large construction companies such as: Hai Thach Group, Song Da 10 JSC, Cienco 492, Vinavico, Lung Lo, Quan Trung, Sao Bac Dau, BCA Thang Long Ltd, A Chau, NCB, Mai Linh, Ban Thai, Tranimexco, Truong Son , etc Team The consulting units, supervision consultants, verification consultants of the Project are a combination of foreign units and prestigious domestic units: Nippon Koei, Công ty A2Z, Hoang Long, Egis Bceom, TEDI, Apave Asia - Pacific, Dohwa, etc

Head to the north from Cu Mong, Hai Van II

With outstanding achievements, reputation and experience learned from Deoca Road Tunnel, Deoca Investment Joint Stock Company was entrusted by the Government and the Ministry of Transport to the “mission to attack” obstacles in the north of Phu Yen to connect with Binh Dinh. The mission was to invest, design and construct a Road tunnel through Cu Mong pass.

The investment capital of Cu Mong road tunnel project was VND 4,000 billion, equal to the amount saved from the estimate of Deoca Road Tunnel project. Cu Mong Tunnel has total length of 6.62km. Tunnel length is 2,600m, access road length is 4,020m and total length of 2 bridges on the tunnel is 36m. The access road is of grade 3 road standard with speed of 80km/hour. At present, Cu Mong tunnel is under busy construction. Vietnamese workers fully master all technologies and techniques. The construction progress of Cu Mong road tunnel has been 3 months earlier. The work was completed early and officially inaugurated in early 2019.

After completing Deoca Road Tunnel and currently constructing Cu Cu Mong Tunnel, Deoca Investment Joint Stock Company has passed a “big examination” and has been assigned to implement Hai Van Road Tunnel II Project, to expand Hai Van Tunnel into two pipe tunnels in the model of Deoca Road Tunnel for years earlier than expected. The project consists of two phases with total investment of over VND 7,200 billion. Phase 1 is to repair, upgrade Hai Van tunnel 1 and to renovate National highway No.1 section through Hai Van pass. Phase 2 is to expand the existing evacuation tunnel into a traffic tunnel with a scale of four lanes. Expand the bridge, access road into four lanes. It is expected that the entire Hai Van Road Tunnel II Project will be completed by 2020.

Not stopping there, Deoca Investment Joint Stock Company has continued to “rescue” Bac Giang - Lang Son Expressway Project. This project has a total investment of over VND 12,000 billion. Total length of the expressway is 63.86 km. This project was involved in a “scandal” when the former project owner participated in organizing a VND trillion internet gamble. After the Investment Joint Stock Company was the “only one” to be capable of rescuing. So far, many tough challenges have been overcome and the project has regained its progress and prestige. Bac Giang - Lang Son expressway will be completed in December, 2019.

At the end of 2018, the Prime Minister agreed to merge Lang Son - Huu Nghi border gate Expressway into Bac Giang - Lang Son Expressway Project and assigned it to Deoca Investment Joint Stock Company to continue construction. The Prime Minister requested and Deoca Investment Joint Stock Company’s leaders undertook the task, pledged to complete the entire project in 2020 as stated by the Prime Minister in reply to the National Assembly.

After completing Deoca Road Tunnel, Deoca Investment Joint Stock Company was honored. And the fact that the journey from Deoca to Huu Nghi border gate proved that it was worthy of that honor. Currently, this enterprise is the core to form an economic group, the No. 1 brand in terms of investment, design and construction of transport infrastructure: Deoca Group: Deoca Group’s key projects are being implemented from the South of Central Vietnam to Lang Son in the North of the country and even further, etc

Continue to conquer Pac Bo and Cao Bang

Deoca Group is currently headed by CEO Ho Minh Hoang, a 7X generation businessman. Ho Minh Hoang is currently the Chairman and the CEO of Deoca Group. He is a quite special, fiercely tough person, the author of the slogan “Think different, do different”, called as the “King of road tunnels in Vietnam”, who “makes the impossible become possible ” and always talks to colleagues: “Pursue a big dream and find a way to realize that dream”.

Ho Minh Hoang, whose native land in Binh Dinh but born and grew up in Phu Yen, is an businessman who started his business from bare hands. There have been many pages of books, articles and songs written about Ho Minh Hoang because he is the soul and the most important person in the process of making Deoca Group like today. Starting his business in Phu Yen after graduating from a university from a failed construction cooperative left by his father, Ho Minh Hoang’s business gradually recovered and became a famous business in Phu Yen. After that, he pursued a “big dream” to make a Road tunnel through Ca mountain in the amazement of anyone who heard about it at that time. However, as a miraculous story, the tunnels of Deoca, Cu Mong and Hai Van II have gradually been realized under the guidance of Ho Minh Hoang and his colleagues and the trust and support for Deoca Investment Joint Stock Company given by experts.

After successfully “moving north” with the investment in the implementation of the Bac Giang - Lang Son Expressway project, then Lang Son - Huu Nghi border gate Expressway, from the position of Vice Chairman, General Director, Ho Minh Hoang assumed the role of Chairman and General Director of Deoca Investment Joint Stock Company. He conducted restructuring the business, creating new and powerful impulses to form Deoca Group.

In 2016, the Prime Minister issued a Decision approving the development planning of Vietnam's expressway network to 2020, with orientation to 2030. In which, Dong Dang (Lang Son) to Tra Linh (Cao Bang) expressway with length of 144km and total investment of approximately VND 47,000 billion would be built after 2030. Therefore, according to this plan, it will take at least 12 to 15 years before the highway can reach Cao Bang. Cao Bang is a war zone, where the historic place of Pac Bo cave is located, but it is separated from other localities in the country because it can only be reached by road with a small road, high and dangerous mountain passes in mountain fog only.

Dong Dang (Lang Son) - Tra Linh (Cao Bang) Expressway is determined not only to be the biggest driving force to help Cao Bang to gain break through socio-economic development but also be very important in ensuring security and defense objectives of the country’s northern border region. According to the latest information, this route would be realized by 2022, 10 years earlier than expected. The factor to create that reality is Deoca Group.

At the end of 2018, the people who made Deoca proactively proposed and was assigned the task of surveying and designing this expressway. Deoca Group cooperated with Cao Bang People's Committee to join at a “fast pace”. A new plan was submitted to the Government, whereby the expressway would be shortened by 29 km from 144 km to 115 km and reduce the investments from VND 47,000 billion to VND 21,000 billion. This is the style, the tradition in Deoca Group's investment, design and construction that was shaped right from the beginning of forming the brand like today.

Most recently, in a meeting with Cao Bang province, Prime Minister Nguyen Xuan Phuc agreed to implement the expressway project in two phases: Phase 1 is to implement the project from 2019 - 2020 with the section from Tan Thanh (Lang Son) to Cao Bang city with length of approximately 80km. Phase 2 is to construct the section from Cao Bang city to Tra Linh border gate. Phase 1 has a total investment of VND 10,000 billion with VND 2,000 billion funded by the Central budget, VND 2,000 billion contributed by the local budget and VND 6,000 billion from the investor's capital.

A new process of realization has begun powerfully, etc

VU THIEN PHONG