Site clearance for the construction of Hanoi - Haiphong Highway was commenced in May 2008, construction packages were carried out in 2011 and the route was officially open to traffic on December 5, 2015. The route starts at the intersection of Hanoi Ring Road III, about 1 km north of Thanh Tri Bridge and ends at the Port of Dinh Vu, Hai An District, Haiphong City. The investor, Vietnam Infrastructure Development and Finance Investment JSC (VIDIFI) had spared no effort to complete the most modern and synchronous freeway in Vietnam as of December 2015 on schedule. The project also helps make breakthroughs in socioeconomic development, national defence and security. With its endeavours, VIDIFI was praised the Prime Minister and the State Appraisal and Acceptance Council. The success of the highway project is a motivation for VIDIFI to stay ready to take on key transport infrastructure projects in the future. Vietnam Business Forum interviewed Mr Dao Van Chien, President of VIDIFI. Ngoc Quynh reports.
Hanoi - Haiphong Highway is an extremely important national traffic project. The Vietnam Development Bank (VDB) was chosen by the Government and the Ministry of Transport as an investor of the project. How did the company achieve the on-time completion of the project?
Once tasked, Vietnam Development Bank together with Vietcombank and Vinaconex Corporation set up Vietnam Infrastructure Development and Finance Investment JSC (VIDIFI). VIDIFI was honourably assigned by the Government and the Ministry of Transport to invest in Hanoi - Haiphong Highway. Site clearance for the construction of 105.5-km long expressway was started in May 2008, and construction packages were carried out in 2011. The 100-metre wide motorway was officially opened to traffic on December 5, 2015 with a total investment capital of VND45,487 billion. This important project is of political, economic and social significance, helping develop the northern economic zone, creating motivational boost to the development of regional transport networks in line with the Vietnam Transport Development Strategy to 2020. The project also helps realise the agreement on “two corridors, one economic belt” between the Government of Vietnam and the Government of China.
To achieve such results, VIDIFI had to overcome a plenty of difficulties and challenges in the implementation process because this was a complex technical project. The road bed was elevated while the ground was weak. The project had a huge investment capital and it is quite hard to calculate the payback over 30 years. Site clearance is determined to be extremely hard work in any transport project, and Hanoi - Haiphong Highway was no exception. The traffic route went through four provinces and cities, namely Hanoi, Hung Yen, Hai Duong and Haiphong. VIDIFI proactively coordinated with local authorities to clear 1,430 ha of land, including 115 ha of residential land and the rest being agricultural land. 46,748 households were affected by land reclamation. The investor built 44 resettlement areas for 2,367 households. The project was carried out in line with international practices (using foreign capital, hosting international procurement, managing contracts under FIDIC conditions.) The project also used 31 million cubic metres of material, while supply sources were not near.
VDB and VIDIFI received special attention and support of the Government, the Ministry of Transport, the Ministry of Finance and other ministries, branches and localities concerned. VDB positively and proactively prepared enough capital and solicited strong supports of local people where the highway went through. Hence, difficulties emerging from the process of carrying out the project were gradually removed. VIDIFI effectively mobilised and used domestic and foreign resources, seriously executed consistent measures like reviewing plans, designs and technical solutions to introduce modern construction solutions to cut investment costs; apply new technologies in order to shorten the time of construction and enhance construction quality and investment efficiency.
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With advantages of founding shareholders, VIDIFI has favourable conditions in capital, financial investment and real estate and can mobilise and attract domestic and foreign investment. How will VIDIFI promote its pluses to increasingly assert its brand name and enhance its competitiveness in domestic and international markets?
VIDIFI is a joint stock company established by leading economic entities of Vietnam. In the coming time, VIDIFI will strive to improve business performance and sustainable development.
With a highly qualified, capable and professional employees, modern governance and financial transparency, VIDIFI can cooperate with other units to invest in construction of industrial zones, urban zones and service zones. Besides, VIDIFI will sell its shares to the public to domestic and foreign investors and transfer part of BOT contracts. If assigned by the Government and relevant authorities, we will continue to invest in other national key infrastructure projects according to the functionality of Vietnam Development Bank and the competence of VIDIFI. We will build cooperation ties with domestic and foreign economic groups and financial institutions for joint development.
With its suitable strategic directions, we expect to bring practical effects to the society and generate a prerequisite for the sustainable development of VIDIFI in the market economy.
Exercising corporate social responsibility (CSR) towards sustainable development is a challenge for developing countries like Vietnam. How has VIDIFI exercised this issue?
CSR is a global trend and an indispensable requirement for businesses in the integration process. VIDIFI always pays attention to material and spiritual life of its employees, builds corporate culture, and improves material and spiritual life standards for its employees, builds a friendly working environment, and creates solidarity and unity to overcome every challenge.
VIDIFI pays special attention to traffic safety, green and clean highway programmes, and effectively operates the highway towards sustainable development and environmental protection for the further satisfaction of people and businesses. Projects deployed by VIDIFI always satisfy technical and environmental requirements and ensure harmonious interests of partners and customers.
How do you assess the potential, advantages and investment environment in Haiphong?
Haiphong is endowed with enormous potential for economic development. However, to develop rapidly and effectively, Haiphong needs to provide mechanisms, policies and methods to support investors. The biggest difficulty of Haiphong is site clearance, the city needs to have suitable policies in site clearance to ensure rights and interests for land owners. Besides, the Government needs to be more firm in site clearance to provide conditions for investors to carry out their projects as scheduled and grasp all business opportunities.
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