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Adjust unit price for transportation projects

VietNamNetVietNamNet11/10/2023


This is the opinion of businesses at the discussion "Transportation industry enterprises with the development of transport infrastructure and international integration", organized by Giao thong Newspaper this afternoon, October 11.

With the aim of providing a more comprehensive perspective on the journey of overcoming difficulties, rising up, and the rapid transformation of Vietnamese transport enterprises, the delegates frankly shared many issues related to mechanisms and policies in the field of investment and development of transport infrastructure.

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Thung Thi tunnel project constructed by Deo Ca Group ensures on schedule

Mr. Ho Minh Hoang, Chairman of the Board of Directors of Deo Ca Group, said that although there are no exact statistics, in recent times, Vietnamese transportation enterprises have grown remarkably.

Accordingly, previously domestic enterprises were only assigned bid packages under 500 million, but now the value of assigned bid packages is up to more than 14,000 billion VND.

Although capacity has increased and opportunities to access large bidding packages have appeared, Mr. Hoang believes that in order to grow stronger, Vietnamese transport enterprises really need support from the State's mechanisms and policies.

“In the current context, the policy mechanism still has many shortcomings. In the process of interacting with state agencies, the Group has to face a lack of responsibility, fear of responsibility, and outdated thinking from state management levels,” said Mr. Hoang.

Businesses also cited policy inadequacies. “There are unit price norms that have not changed for 40 years, or even regressed,” said a business representative, suggesting that the Ministry of Transport should make timely adjustments to increase the competitiveness of domestic contractors.

Assoc. Prof. Dr. Tran Chung, Chairman of the Vietnam Association of Road Traffic Construction Investors (VARSI) Construction enterprises in the transport sector have cured "3 incurable diseases" in basic construction including: capital increase, slow progress, and poor quality.

Deputy Minister of Transport Le Dinh Tho said that in just the past 3 years, thanks to the efforts of units and enterprises, the length of expressway put into operation is more than 600km, bringing the total number of expressway kilometers to nearly 1,900km.

Meanwhile, in the period 2011 - 2020, the length of newly built highways is about 1,074km.

“This is the pride of the transport sector, including the contribution of the transport sector’s business team. Businesses have contributed to the development of transport infrastructure,” said Deputy Minister Tho.

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Deputy Minister Le Dinh Tho speaks at the seminar

Sharing the concerns of businesses about mechanisms, procedures, and regulations, Deputy Minister Le Dinh Tho requested that functional units focus on resolving them and made a commitment to direct functional agencies to promptly resolve them.

Mr. Nguyen Thanh Van, Deputy Director of the Department of Construction Investment Management, admitted that the current unit price standards applied to traffic projects are not as expected.

A typical example is that the current labor cost is only 300,000 VND at most, but in reality, the price that businesses have to pay to hire is from 400,000 - 500,000 VND.

"The Department of Construction Investment Management will continue to coordinate to review and soon re-establish the standards so that the unit prices applied in traffic project construction investment will soon be adjusted to be closer to reality," said Mr. Van.



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