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TransportfirmsupforODAafterrestructuring
ThT,08/06/2016,09:53GMT+7

WorkerscarryoutconstructionworkonTanVuLachHuyenRoadinthenorthernHaiPhongCity.BuiltwithJapaneseODA,the15kmroadwillconnectwiththecurrentnationalhighwaythatrun
betweenHaNoi,QuangNinhandHaiPhong.VNSPhotoHuyHung

HANOI(BizHub)Enterprisesinthetransportsectorhavebecomemoreeligibleforofficialdevelopmentassistance(ODA)afterbeingrestructured,officialssay.
Manyinternationalorganisations,includingtheWorldBank(WB),AsianDevelopmentBank(ADB)andJapanInternationalCooperationAgency(JICA),alongside
sponsorsfromFrance,SouthKoreaandChina,havebeenfundingtrafficinfrastructureprojectsinVietNam.
However,strictrequirementsbythesponsors,relatedtofinancialcapacityandexperience,lefthardlyanychancefortheparticipationofStateruncompaniesin
ODAfundedprojectsinthepast.
Forexample,theWBdidnotletStateutilitycompaniesbidforitsprojects,enablingonlyforeigncompaniestobecomeitsmajorcontractors.
AccordingtoNguyenDucKien,GeneralDirectoroftheinfrastructuredevelopmentThangLongCorporation,"domesticcompaniesusuallyhadtoworkassub
contractorsforforeignfirms,beingputatmanydisadvantages."
Thesitutionisdifferentnow.
VuAnhMinh,DirectoroftheMinistryofTransport'sEnterpriseDevelopmentDepartment,saidnumerousfirmshavebeenequitisedandStatecapitalhasbeen
withdrawnfrommanyotherbusinessesinthesectoroverthepasttwoyears.
Withthereorganisation,theyarenowcapableenoughtocontractformajorprojectswithODAcapital,eitherindependentlyorjointlywithinternationalcontractors,
hesaid.
Minhsaidearlierthisyearthattheministrywouldaccelerateequitisationoftransportcorporations.Itplannedtocompletecapitalwithdrawalfromseveralfirms,
includingCienco5,Cienco6andCienco8in2016.
"Thesoonerenterprisesgetofftheirparents'nourishment',themoreexperienceandresourcestheywillgaintobetteradapttomarketdevelopments,"hesaid.
"Thisisespeciallymeaningfulwhenweareintegratedmoredeeplyintotheglobaleconomy."
Between2011and2015,137businessesinthetransportsectorwentpublic,67morethanthetargetthattheministrysetfortheperiod,accordingtotheministry's
data.
VietNamExpresswayCorporationGeneralDirectorMaiTuanAnhsaidanydomesticenterprisescouldnowparticipateinODAfundedprojectsofhiscompany
providedtheyproveadequatefinancialcapabilityandexperience.
Thecompanystrictlyselectedcontractorsusinginternationalcompetitivebiddingprocedures,hesaid.
AccordingtoAnh,JICAfinancedapartoftheDaNangQuangNgaihighwayinthecentreofthecountry,withVietnameseenterprisesexecutingsevenofeight
constructionpackages,whileajointventurebetweenVietNamandSpainwasresponsiblefortherestofthispart.
WithregardtothreepackagesfundedbyJICAintheBenLucLongThanhhighwayprojectinthesouth,VietnameseandJapaneseenterprisesjointlybecame

contractors.
NguyenTuanHuynh,ChairmanofCivilEngineeringConstructionCorporationNo4(Cienco4),saidtheStaterunfirmtransformationintoajointstockcompanyin
mid2014wasalandmarkforitsdevelopment.
ThiscreatedbetterconditionsforittoexpandmarketsandapproachlargescaleprojectsfundedbyWB,ADBandJICA.TwooftheprojectsweretheNoiBaiLao
CaihighwayinthenorthandtheNhatTanbridgeinHaNoi.
HuynhsaidCienco4wasactivelyrenewingmanagementmethods,rationalisingorganisationalstructureandenhancingoperationalefficiency.Itnowwouldfocus
onimprovingtechnology,financialcapacityandhumanresourcequalitytostaycompetitiveforODAprojectrequirements.
KienfromThangLongCorporationsaidhisfirmwouldpromotecooperationwithforeigncontractorstobetterrespondtoopportunitiesofODAprojects.
Accordingtothepublicprivatepartnershipprojectmanagementboardunderthetransportministry,itisimportanttodevelopcadresforequitisedbusinesses.
Besidescapitalandequipment,humanresourcesarereportedlyofthemostdecisivefactorsindeterminingtenderwinners.VNS
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