Slow site clearance, slow construction by contractors
The To Huu extended road to Phu Bai airport project with a total investment of more than 1,143 billion VND is behind schedule due to site clearance and the construction capacity of some contractors.
The project is invested by the Hue City Urban Development and Construction Investment Project Management Board (Project Management Board), connecting An Van Duong New Urban Area with National Highway 1A and Phu Bai International Airport. The project is expected to contribute to completing traffic infrastructure at the southern gateway of Hue City.
According to the investor, the project recovers more than 60ha of land, affecting 821 households in Thanh Thuy, Huong Thuy and Phu Bai wards. However, so far only about 54.7ha of land has been handed over. Huong Thuy ward alone has 106 households and Phu Bai ward has 92 households that have not completed land handover, compensation, and resettlement.
The project includes two main construction packages. In which, package No. 20 worth more than 127 billion VND has only been handed over about 70% of the site, so construction has not reached the plan. The investor said that the price of fuel and construction materials has increased sharply, the supply is scarce, and the site handover is small, causing progress to be affected.
Notably, package No. 21 worth more than 558 billion VND, although it has received about 96% of the site, the progress is still very slow. From the beginning of 2026 to now, the construction volume for many months has only reached 25-28% compared to the commitment.
The Project Management Board assessed that the main reason is that some contractors are slow to construct, especially Dong Tam Group Joint Stock Company when it only implemented about 13.3/193.3 billion VND of contract value, reaching less than 7%. The delay in progress makes many items unable to be implemented synchronously, affecting the disbursement plan and the progress of the entire project.
Terminating contracts with weak contractors
Faced with the prolonged delay in progress, the Project Management Board said that it has repeatedly urged, warned and sanctioned violating contractors.
Leaders of the Project Management Board said that at package No. 21, Dong Tam Group Joint Stock Company is slow to construct for a long time. The investor has repeatedly issued documents reminding and requesting to speed up the construction progress, but the contractor still does not implement the commitments made.
Therefore, to date, the investor has issued 2 decisions to fine Dong Tam Group Joint Stock Company with a total amount of 411 million VND for violating the construction progress according to the contract. At the same time, the investor has announced the termination of the contract for the work part undertaken by Dong Tam Group Joint Stock Company at package No. 21 of the To Huu extended road project to Phu Bai airport. Currently, the investor is completing procedures to issue a decision to terminate the contract with Dong Tam Group Joint Stock Company due to contract violations.
If the contract is terminated, the investor will confiscate the contract implementation guarantee of more than 10.2 billion VND and recover the remaining advance of more than 42.5 billion VND. The unimplemented volume will be considered for handover to the remaining members of the consortium if they have sufficient construction capacity.
After terminating the contract with Dong Tam Group Joint Stock Company, the members of the consortium are responsible for dividing the remaining work to continue implementation. In case the above plan is not implemented, the investor will terminate the contract with the entire consortium.
