In recent years, the term “EPC contract” has been appearing more frequently in the construction industry of Vietnam. EPC stands for Engineering, Procurement, and Construction. An EPC contract is a type of construction contract where the contractor takes responsibility for the engineering, procurement, and construction activities of a construction project and delivers a completed final project to the employer or owner.
Hence, EPC companies are involved in engineering, procurement, and construction services on a contract basis. EPC companies primarily engaged in construction projects, however, the sectors they cover can vary.
The EPC contract has been in Vietnam since the late 1990s. Currently, in Vietnam, domestic and foreign investors apply the EPC contract in industrial construction projects. The EPC contract can be applied to construct parts of a project or a whole construction project.
Many construction projects in Vietnam were built with an EPC contract, such as the Uong Bi Thermal Power Plant, the Dung Quat Oil Filter Factory, the Na Hang Hydropower Plant, etc. The EPC contract is gradually becoming a familiar term, especially in large projects with big investments.
Foreign contractors have been taking on EPC contracts in Vietnam up until recent years. About ten years ago, Chinese contractors accounted for 90% of EPC contracts for different projects in Vietnam, ranging from electric power, petroleum, metallurgy, extractive to chemical and mechanical. However, Vietnam companies are proving to be as capable at contracting EPC construction contracts, especially construction contracts in the field of electric power and petroleum.
Listed below are some notable companies dealing with EPC contracts in Vietnam.
For nearly 60 years, Song Da Corporation has been the main contractor for most hydropower projects in Vietnam, such as Son La Hydropower - the largest hydroelectric project in Southeast Asia, Hoa Binh Hydropower, Lai Chau Hydropower, Huoi Quang Hydropower. Song Da Corporation also serves as an EPC contractor for some other projects such as Tuyen Quang, Sesan 3, etc. Song Da accounts for 85% of the domestic market share in hydropower construction, becoming the largest contractor in this field in Vietnam. Song Da Corporation also expanded its operations to Laos with Xekaman 1 hydropower projects including Xekaman Sanxay, Xekaman 3, Xekaman 4, Namthuen, etc.
Song Da is also one of the leading contractors in Vietnam in the construction of underground works, traffic works. The corporation has carried out constructions of more than hundreds of kilometers of tunnels, especially the Hai Van tunnel with the NATM construction method. Other traffic projects such as Lang Hoa Lac expressway, National Highway 1A, Highway 10, National Highway 18, Ho Chi Minh Road, Hai Van Road Tunnel, Pass Ngang Road Tunnel, Road Tunnel Ca pass, construction of high-speed rail in Hanoi and Ho Chi Minh City. Besides, many industrial projects have been successfully implemented by the Corporation, such as Ha Long Cement Factory, But Son Cement Factory, Bai Bang Paper Factory, Minh Phuong Textile Factory.
Vietnam Machinery Installation Corporation – JSC (LILAMA) is an enterprise established in 1960. In 60 years of operation, LILAMA has participated to construct and install thousands of important projects in fields of energy, cement, chemical, oil refinery, etc.
As an EPC contractor, LILAMA has been taking part in constructing important national projects as Extension Uong Bi Thermal Power Plant, Ca Mau 1&2 Combined Cycle Gas Power Plants, Nhon Trach 1, Nhon Trach 2, Vung Ang 1 thermal power plant, Song Thao cement plant, Song Hau 1 thermal power plant, etc.
Power Construction JSC No1 (PCC1) was established on 02 March 1963. With more than 57 years of experience, PCC1 is currently leading the country in the field of electrical construction with experience in many national power transmission projects, especially EPC and PC projects to 500KV and projects with high specificity (Gis station, island power supply project, underground cable project, etc).
Moreover, the company has successfully made a breakthrough in implementing the general contractor for renewable energy power plants, especially projects with high technology requirements - wind and solar power plants. Projects of PCC1 include Quang Ninh 500kV Transformer Station Project, Hiep Hoa 500kV Transformer Station Project, Cat Lai 220kV Line - High Technology, etc.
Aside from the mentioned companies, others in Vietnam are also acting as EPC contractors for different projects. Though mainly participating as EPC contractors for parts of projects now, the companies in Vietnam aim to serve as contractors for whole projects in the future.
Compiled by VietnamCredit