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Chinese investor eyes transport infrastructure projects

Released at: 18:23, 04/08/2017

Chinese investor eyes transport infrastructure projects

Photo: Internet

China Gezhouba Group Company tells Deputy Minister of Transport of its wish to become involved in transport projects in Vietnam.

by Quynh Nguyen

At a meeting with Deputy Minister of Transport Nguyen Ngoc Dong on August 3, Mr. Chen Xiaohua, Vice President and Standing Party Member at the China Gezhouba Group Company (CGGC), a Chinese construction and engineering company, expressed its desire to cooperate in Vietnam’s transport sector.

CGGC is a State-owned enterprise involved in designing, constructing, investing in, and operating energy projects such as hydropower and thermal power and transport projects such as highways, railways, bridges, airports, and ports, and was established in 1970 and has branches in 136 countries.

“Vietnam is a stable developing country with great potential for foreign investors,” he said “CGGC would like to become involved in investing in or contracting projects on highways and urban railways in the country.”

Deputy Minister Dong said that Vietnam is focusing on developing its infrastructure, considering its development as one of three strategic breakthroughs, but capital remains tight. “The government therefore welcomes and calls upon domestic and foreign businesses and investors, including CGGC, to take advantage of their strengths to invest in transport projects under the public-private partnership (PPP) model or as project contractors,” he said.

He asked CGGC to work directly with relevant agencies at the Ministry of Transport (MoT) to obtain full information on projects and think about where it would like to cooperate. MoT would then consider any proposal before making a decision.

A number of Chinese enterprises have recently secured contracts in Vietnam’s transport construction works in Vietnam. The Ministry of Transport, however, previously announced that errors were found in the work of some Chinese enterprises and that construction pace was slow at times.

For example, last year the Railway Project Management Unit under MoT asked the Chinese contractor, the supervisory consulting firm, and subcontractors involved in the Cat Linh - Ha Dong urban railway line project in Hanoi to explain the lack of safety and faults found during the construction process.  

After being informed that the work did not meet safety requirements and that workers were not professionally trained, the management unit sent an urgent dispatch requiring the China Railway Bureau Group 6, the main contractor, to account for the shortcomings.

During his first official visit to China last year, Prime Minister Nguyen Xuan Phuc said the slow pace of construction has had a negative impact on traffic in Hanoi and sparked public dissatisfaction. Given the fact that a number of accidents have occurred in the project, he told the Chinese company to ensure safety on the site.

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