Vietnam-China consortium proposes participation in Ho Chi Minh City metro projects

The current Ho Chi Minh City is a combination of the former Ho Chi Minh City and neighboring Binh Duong and Ba Ria-Vung Tau Provinces, effective from July 1.

Deo Ca Group recently submitted the proposal to the city’s leadership.

In the document, Deo Ca expressed its desire to contribute directly to major infrastructure developments in the city, especially strategic long-term projects like urban railways.

The group has independently developed a 'railway strategy,' which includes plans for workforce development and specialized equipment preparation.

This has been done through cooperation with organizations from countries such as France and China, allowing Vietnamese personnel to study and work abroad.

Since early 2024, Deo Ca Group has collaborated with Ho Chi Minh City University of Transport to train over 200 civil engineers in railway construction.

Additionally, groups of engineers and workers have been sent to participate in the construction of the Guangzhou–Dongguan–Shenzhen intercity railway, executed by China Railway Construction Corporation, to gain hands-on experience with TBM tunnel technology.

Deo Ca has also signed partnership and consortium agreements with both domestic and international firms such as Fecon, PowerChina, and SUCG International Engineering Co. Ltd., preparing to promptly implement railway projects in Vietnam.

On behalf of the consortium, Deo Ca has proposed that Ho Chi Minh City authorities apply the mechanisms of the National Assembly’s Resolution 188 on urban railway development to directly assign the consortium to execute the metro line No. 2 project and other metro projects in the city.

Deo Ca and Fecon, as local firms, will mobilize trained personnel and TBM equipment, ensuring readiness for construction and operation in accordance with quality and timeline requirements.

If assigned, Deo Ca will act as the main contractor under the EPC (Engineering, Procurement, and Construction) model, cooperating with domestic and foreign enterprises to execute the project. 

This model ensures that Vietnamese firms retain full control of the technology and avoid dependency on foreign technological monopolies.

The company was also committed to complying with all technical standards, safety and environmental regulations, and project timelines, under close supervision from local authorities.

It pledged transparency, accountability, and efficiency throughout the EPC contract execution.

Private sector interested in Ho Chi Minh City’s metro, railway projects

In line with directives from the city's steering committee for urban railway development, departments and agencies are currently reviewing the overall urban railway network plan according to a new model and vision.

The city is implementing Resolution 188, focusing public investment capital on seven metro lines with a combined length of 355 kilometers, scheduled for completion by 2035.

The Thu Thiem–Long Thanh railway and a line connecting the city center to Can Gio are prioritized for early development with private capital.

The total investment needed for nine urban and intercity railway lines exceeds VND1.2 quadrillion (US$45.9 billion).

Thanks to special mechanisms from Resolution 188 and Resolution 68 on private sector development, there is currently an unprecedented level of interest and bold investment proposals from the business community in metro and railway projects in Ho Chi Minh City.

Vietnam's largest private conglomerate Vingroup is studying and planning to invest in a 48.7-km metro line connecting downtown Ho Chi Minh City with Can Gio, while Sovico Group, a founding shareholder of budget air carrier Vietjet Air, has requested approval to study and invest in the 47.3-km metro line No. 4.

Most recently, Vietnamese conglomerate Truong Hai Group has proposed a plan to study and invest in metro line No. 2 and a railway linking the Thu Thiem urban area to the underway Long Thanh International Airport project in neighboring Dong Nai Province.

Ho Chi Minh City has already submitted a report to the Ministry of Construction, proposing that the prime minister designate the city as the managing authority for these projects.

The city is also encouraging investors to proactively study and propose related content for consideration by competent authorities.

Previously, another consortium of Dai Dung Group, Construction Corporation No. 1, and Hoa Phat Group also submitted a proposal to participate in urban railway projects, particularly metro line No. 2.