Economy

Replacing Underperforming Contractors to Keep Key Projects on Track

Nguyen Nghia 14/05/2026 09:50

While provincial authorities are working to mobilize resources for transport infrastructure development and create momentum for socio-economic growth, delays linked to the underperformance of several contractors have become a major obstacle.

In response, provincial leaders have made their stance clear: contractors that fail to meet requirements must face strict measures and, if necessary, be replaced to ensure the progress of key projects.

The Phuoc Cat Bridge Project has reached only 65% of its construction volume.

Delays Expose Contractors' Limitations

Transport infrastructure is often described as the “lifeline” of the economy. However, several key projects managed by Project Management Unit No. 1 are currently falling behind schedule. Field assessments show that, alongside objective challenges such as site clearance and unfavorable weather conditions, shortcomings on the part of contractors have become increasingly apparent.

A typical example is the DT722 Route Project (Phase 1). Despite a total investment of VND 600 billion and partial disbursement of the 2026 capital plan, construction progress remains below expectations. According to reports presented by the project management board during a recent meeting with provincial leaders, in addition to adverse weather and rising material costs, the core issue lies in the contractor’s failure to mobilize sufficient resources for implementation.

The prolonged delays and failure to deploy adequate manpower and machinery as committed have not only wasted public resources but also placed significant pressure on the province’s target of completing the project by June 30, 2026.

An even more serious situation has emerged at the Phuoc Cat Bridge Project, part of the initiative to replace five deteriorating bridges. With construction costs exceeding VND 103 billion funded by the central budget, the project was expected to be completed soon to improve traffic safety. However, the project has now stalled, with only around 65% of construction work completed. Authorities identified financial difficulties faced by the main contractor as the primary cause.

A key infrastructure project cannot remain delayed while waiting for a contractor to recover financially, as this not only affects regional connectivity but also undermines public confidence and expectations.

Phuoc Cat Bridge remains unfinished and cluttered with ongoing construction work.

Strong Measures Needed to Restore Progress

Facing mounting pressure, Project Management Unit No. 1 has introduced decisive measures to maintain overall progress. At the Phuoc Cat Bridge Project, the investor proactively assigned the bridge access road section to another contractor in order to prevent further delays to the entire project. The move is considered necessary and reflects a firm stance against contractors that accept projects without sufficient implementation capacity. Under the revised plan, the bridge access road must be completed before May 30, 2026.

Closely monitoring the situation, Vice Chairman of the Lam Dong Provincial People’s Committee Vo Ngoc Hiep issued firm and direct instructions.

These projects are not merely roads and bridges but essential infrastructure serving socio-economic development. Therefore, any delay is unacceptable.

Vice Chairman of the Lam Dong Provincial People’s Committee Vo Ngoc Hiep

Provincial leaders have instructed Project Management Unit No. 1 to take strict action against slow-performing contractors and reassign work volumes from underqualified units to contractors with sufficient capability and commitment to ensure projects are completed on schedule.

The Provincial People’s Committee also directed the Land Development Center to coordinate with local authorities in developing detailed compensation and technical infrastructure relocation plans, ensuring that site clearance does not become a barrier for contractors ready to accelerate construction.

For major transport projects to truly become drivers of development, capable and responsible contractors who are committed to the effective use of state budget resources are essential. Replacing weak contractors is not only about rescuing project timelines, but also about building a disciplined, transparent and efficient public investment environment.

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