On October 28, 2022, in Hanoi, Deo Ca Group held a signing ceremony with Petroleum Trading Lao Public Company (PTL) on investment cooperation. This event officially opens up new development opportunities for two big enterprises through the joint investment in the Laos – Vietnam Railway Project (LVRP) and other transport infrastructure, real estate, industrial park, and logistics projects.
Deo Ca’s Chairman and PTL’s Chairman signed the cooperation agreement in front of representatives of both sides
This cooperation agreement aims to promote the parties’ strength and potential as well as to effectively utilize the resources of each party. Deo Ca and PTL support each other to develop these fields in line with each other’s business strategies to promote the LVRP and other projects in which the parties may be interested.
For the LVRP, Deo Ca Group will participate in the consortium for the rail section stretching from Mu Gia to Vung Ang section (i.e., within Vietnam) as an investor, to enhance its investment potential. In Vietnam, Deo Ca Group will take a lead role in managing project development, based on its capacity and experience of successfully implementing many key projects in the past. Accordingly, Deo Ca will join in the planning, appraisal, and approval of Pre-FS, FS, preparing bidding documents for investors, negotiating and signing project contracts, and connecting with potential investors and credit institutions to mobilize capital for the project. For the part of the project in Laos, Deo Ca will also provide some support and coordinate with PTL.
Deo Ca and PTL will, in addition, research and promote the Vung Ang port projects, the bonded warehouses and oil pipelines project from Hon La seaport to Khammouane province (Laos), as well as a few others.
Specifically, both sides agreed to establish a Project Steering Committee (PSC) partaken by the representatives both sides to explore investments in the LVRP as well as other relevant projects. The PSC will evaluate projects, mobilize resources, seek commitment from other co-investors, perform financial analysis and in-depth studies, update existing research, visit construction sites, select critical advisors, and arrange meetings with key state agencies.
Mr. Ho Minh Hoang – Chairman of Deo Ca Group, expressed his gratitude for the interest that PTL has given Deo Ca Group and simultaneously appreciated the vision, capacity, and persuasiveness of the head of PTL. Mr. Ho Minh Hoang expressed, “The precious common point of two groups is that we have the aspiration for our countries and the determination to create real products that bring real value to people in our countries.”
Mr. Ho Minh Hoang hopes that the two sides will become even closer in the future, both as partners and as friends, together learning and sharing experiences. In addition, as the head of Deo Ca Group, he suggested that in November 2022, the two sides would discuss and sign working minutes assigning specific tasks for the LVRP.
Mr. Ho Minh Hoang stated at the ceremony
Mr. Chanthone Sitthixay – the Chairman of PTL Group, expressed his honor to cooperate with Deo Ca Group – a prestigious enterprise with real working people. Mr. Chanthone Sitthixay believed that, with the existing strengths of both sides, if we cooperate, the leaders of the two countries will certainly lend us their support, and we will continue to succeed and further meet the governments’ and peoples’ expectations of our countries. He emphasized, “We said we would do it. We will work until it is done. I expect that by 2026, we will complete the LVRP, and we will see it come into operation”.
During this business trip in Vietnam, the representatives from PTL visited the Thung Thi tunnel (Thanh Hoa), Bao Bien tunnel, and Cua Luc bridge (Quang Ninh). These three projects have been or are being successfully implemented by Deo Ca Group.
Deo Ca Group and PTL Group took a photo at the construction site of the Thung Thi tunnel project
Previously, in September 2022, Deo Ca Group visited and worked to promote cooperation with PTL in Vientiane (Laos). Said previous business trip marked a bright beginning in the relationship between the Deo Ca Group and PTL as the developers of the LVRP and other projects in the future.
PTL is a big multinational corporation operating in Laos’ energy, infrastructure, and real estate industries. It is one of the most prestigious private businesses officially appointed by Laos’ government to invest, develop, construct and manage significant projects such as the Laos-Vietnam Railway, Vung Ang port, Vientiane logistics park, and various industrial zones in Laos.
BY NGOC TRANG