Deo Ca Group foresees huge business opportunities in transport infrastructure development in Vietnam for the company and other private investors, said general director Ngo Truong Nam.

Nam, in charge of bidding at the Vietnamese group, made the statement at a press meeting on Wednesday to announce the nine-month business results of Deo Ca Transport Infrastructure Investment JSC, a subsidiary of Deo Ca Group, known as the “king of tunnels”.

“Deo Ca is also continuing to seek cooperation opportunities with foreign businesses from Japan, South Korea, Europe countries, and others,” he told The Investor on the sidelines of the event.

Deo Ca regularly sends staff abroad to study or work as subcontractors, and is waiting for more information from the Vietnamese government to see which technologies and standards will be prioritized and applied. When the government’s direction becomes clearer, the group will begin to cooperate, he noted

According to the transport infrastructure development plan, the government aims to have 5,000 km of expressways by 2030. With railway network planning, there will be 25 routes with a length of 6,354 km by 2050.

Ngo Truong Nam, general director in charge of bidding at Deo Ca Group. Photo courtesy of Deo Ca.

Deo Ca Transport Infrastructure Investment JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as HHV, recorded revenue of VND1.83 trillion ($74.2 million) in the first nine months of the year, an increase of 23.5% year-on-year, according to its consolidated business results. The company’s profit after tax was VND309 billion ($12.6 million), up 29%.

Its construction segment had the highest growth of 74%, reaching VND271 billion ($11 million) in revenue, accounting for 40% of the firm’s total.

Revenue from build-operate-transfer (BOT) road toll stations increased by 2%, contributing VND391 billion ($15.9 million) and accounting for 58% of total revenue.

For the whole year, HHV estimates consolidated revenue of VND2.51 trillion ($102 million), up 18% and exceeding the year plan by 1%. Its profit after tax is forecast at VND385 billion ($15.6 million), up 30% and exceeding the year plan by 14%.

Nguyen Quang Huy, general director of HHV, commented that the revenue results demonstrate the business’s ability to grow in the current difficult context.

Huy said that the business’s goal is to prepare resources to successfully implement local initiatives and to take the lead in many new industries when growing globally, especially in the context that Vietnam places special attention on national transport infrastructure development.

HHV has three main areas of activity, namely investment, construction, and operation management of transportation infrastructure projects.

Through many restructurings, its current charter capital is VND3 trillion ($122 million). The company officially listed shares in 2022.

BY LAN DO

Source: https://theinvestor.vn/transport-infrastructure-development-a-huge-opportunity-for-deo-ca-exec-d7243.html