HCMC – The Vietnam Association of Construction Contractors (VACC) has proposed capping construction packages for the North-South high-speed rail project at between US$1 billion and US$1.5 billion, aligning with the financial capacities of domestic firms.
The US$67-billion rail project, with US$33 billion allocated for basic construction, is one of Vietnam’s largest infrastructure initiatives. VACC suggested splitting infrastructure construction from components like signaling, power systems, and trains to enable broader participation from Vietnamese contractors.
The association emphasized prioritizing local contractors to create jobs and build expertise, which could prepare the workforce for future international bids.
VACC also recommended establishing clearer criteria for contractor selection, requiring firms to demonstrate experience with comparable-scale projects or three smaller projects of similar complexity. The association also called for flexibility in evaluating the financial capacity of consortiums, allowing for the combined resources of all members.
To foster collaboration, VACC proposed requiring foreign contractors to partner with local firms, with Vietnamese companies handling at least 50% of the work. It further recommended prioritizing local labor, with 70% of workers sourced from areas near the project.
VACC called for simplifying the pricing system for construction packages, moving away from the detailed structures currently in place. It suggested offering a 5% discount for direct contract awards.
The association also advocated for the adoption of FIDIC contract templates, widely used in international projects, and urged updates to compensation rates and material pricing to address potential cost issues. Clear guidelines for managing material sources after extraction were also highlighted as necessary to streamline project execution.
