Yesterday, Cavico Corp. announced its plans to utilize several infrastructure developments in Vietnam for their benefit. Cavico itself manages large infrastructure projects, such as the construction of hydropower plants, bridges, dams, tunnels, roads, and similar.
Developments that are seen as having the possibility to benefit Cavico include the construction of a four-lane tunnel that would link the commercial center of Hanoi to Long Bien District, an increase of infrastructure development loans (reaching $2 billion) to Vietnam by the Asian Development Bank, and an announcement by Nokia to construct a $276 million manufacturing facility in Hanoi.
Business Monitor International predicts that the Vietnam construction industry, by developing the nation’s infrastructure and increasing electricity production, will reach $8.5 billion in 2011, with year over year growth of 8.5%.
“These developments represent excellent opportunities for Cavico,” commented Mr. Ha Quang Bui, CEO of Cavico. “We are particularly excited about the proposed Red River tunnel, as Cavico is the only domestic construction contractor with expertise in the use of tunnel boring machine technology and has an industry-leading technological capability to build underwater tunnels. We have years of experience working on a wide range of large-scale infrastructure construction projects and will work with project organizers to bid on and secure construction contracts as Vietnam continues to expand and develop its infrastructure.”
Mr. Bui continued, “We are also encouraged by the recent $2 billion pledge from the ADB, which reflects Vietnam’s growing attractiveness to foreign investors. Vietnam is Asia’s second fastest-growing economy behind China, and in recent years, the Vietnamese government has implemented policies to create a more favorable investment environment. As the nation’s largest non-government-owned construction company, Cavico is strongly positioned to take action to benefit from increased foreign investment in Vietnam’s infrastructure sector. We see numerous growth opportunities ahead and are very optimistic about the long-term growth of our business.”
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