The North-South high-speed railway project presents significant opportunities while posing challenges in technology and engineering. In response, Deo Ca Group has swiftly implemented specific measures to prepare for its participation, emphasizing the training of specialized human resources and the development of localized technology solutions.

This insight was shared by Mr. Nguyen Quang Huy, General Director of Deo Ca Group, at the seminar "High-Speed Railway – Opportunities and Challenges for Vietnamese Enterprises," organized by Giao Thong Newspaper in Hanoi on November 19, 2024.

Overview of the seminar

The seminar addressed key issues surrounding the North-South high-speed railway project, which the Government has hailed as a symbol of the country’s remarkable development era. With public investment capital set as the primary funding source, the project presents significant opportunities for Vietnamese enterprises while imposing strict requirements on technology, human resources, and regulatory frameworks.

Opportunity for domestic contractors

With a total estimated investment of over 67 billion USD, the North-South high-speed railway is Vietnam’s largest transport infrastructure project to date. Stretching 1,541 kilometers, the project comprises 60% bridge structures, 30% ground structures, and 10% tunnel structures, offering immense opportunities for Vietnamese transport infrastructure contractors.

Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, highlighted that Vietnam has never undertaken a project of this scale and capital investment. He described it as a transformative opportunity for domestic contractors. While the project is not overly complex technologically, it demands meticulous preparation due to its magnitude and the requirement for high precision, especially with 350 km/h train.

“This project is a ‘technological battlefield,’ where Vietnamese enterprises must acquire and apply the most advanced knowledge. With their current capacity and skill level, domestic companies are fully capable of handling the construction. The greatest challenges lie in human resources and practical experience,” Mr. Hiep affirmed.

Mr. Nguyen Quoc Hiep, Chairman of the Vietnam Association of Construction Contractors, spoke at the seminar

Mr. Nguyen Duc Kien, Former Head of the Prime Minister's Economic Advisory Group, praised the progress Vietnamese enterprises have made in construction technology while underscoring the critical importance of cooperation and investment.

He emphasized that domestic enterprises must take the initiative in international investment and collaboration to remain at the forefront of technological advancements. According to Mr. Kien, areas such as railway construction, locomotive power supply systems, carriage production, and rail-laying technology pose significant challenges that require strategic preparation and innovation.

Mr. Nguyen Duc Kien, former Head of the Prime Minister's Economic Advisory Group, spoke at the seminar

Human resources also present a major challenge. Mr. Kien noted that, fortunately, universities have started to innovate their training programs and introduce new majors focused on high-speed railways. He emphasized, "If they do not invest and cooperate, Vietnamese enterprises risk 'losing at home.'"

Preparing for the challenges and opportunities

From the perspective of enterprises, Mr. Nguyen Quang Huy, General Director of Deo Ca Group, commented that while the high-speed railway project presents significant opportunities, it also brings many challenges in technology and engineering. In response, Deo Ca Group has quickly taken specific steps to prepare for participation, with a focus on training specialized human resources and developing localized technology solutions.

Mr. Nguyen Quang Huy - General Director of Deo Ca Group spoke at the seminar

Regarding human resources, Deo Ca Group has partnered with training institutions and launched two railway training courses for 200 engineers. At the same time, practical training centers have been established at construction sites to train the general labor force, ensuring long-term involvement in large projects.

Opening Ceremony of the Metro-Railway Construction Training Program

At its current road projects, Deo Ca Group has set up a practical training center to enhance workers' skills in preparation for the transition to high-speed railway construction. The training programs cover essential topics such as labor safety, environmental sanitation, and advanced field techniques.

Classes at Deo Ca Practical Training Center

In terms of technology, Deo Ca Group has undertaken business trips to China, Japan, and Europe to explore, research, and invite international partners for collaboration. The Group has also proactively pursued digital transformation solutions and aims to participate in the production of locomotives and carriages, aligning with the Government's strategy to increase the localization rate.

"We have strengths in human resources and finance, and are researching and learning from international units with experience and a strong reputation in railway technology to collaborate, aiming to localize production activities for the high-speed railway project," said Mr. Nguyen Quang Huy.

Mr. Van Hong Tuan, Deputy General Director of Cienco4 Group, shared that the enterprise is actively preparing human resources, equipment, and other necessary resources. However, he candidly acknowledged that despite having a large workforce, the company still faces significant challenges, particularly the shortage of engineers and skilled technical workers.

"I hope that the management agency will create favorable conditions for businesses to seize opportunities, thereby enhancing their capacity and position," Mr. Tuan expressed.

Need for specific mechanisms and legal frameworks

Addressing the legal framework and technical standards, Mr. Nguyen Quang Huy emphasized that the North-South high-speed railway project currently proposes 19 groups of specific mechanisms, many of which have been applied to North-South expressway projects. To ensure the project's effectiveness, completing the legal corridor and issuing national standards is critical. Mr. Huy noted that specific mechanisms used in expressway projects should be reviewed and adjusted to align with practical conditions, particularly in areas such as site clearance and material mine licensing, to shorten implementation time and create favorable conditions for Vietnamese enterprises to invest confidently in technology and human resources.

For large-scale projects, Mr. Huy proposed prioritizing domestic enterprises with strong management capacity and specific expertise to organize, connect, and train other firms while prioritizing local enterprises in project areas.

TRUC LINH