Deo Ca consortium starts drilling 8.8km Hoang Lien tunnel, Vietnam's highest road tunnel
This Aveluro analysis covers DCA. The classified event type is contract win, with positive sentiment and a deterministic market-impact score of 5.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Vĩ mô đầu tư, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
The Deo Ca consortium, led by Deo Ca Group (DCA), has officially commenced drilling the 8.8km Hoang Lien tunnel, the highest road tunnel in Vietnam. This project will reduce travel time across the Hoang Lien pass from 2 hours to just 11 minutes, significantly improving connectivity between Lao Cai and Lai Chau provinces. The milestone marks a major step in the country’s infrastructure development and strengthens DCA’s portfolio of large-scale tunnel projects.
Key Facts
- The Hoang Lien tunnel is 8.8km long, making it the highest road tunnel in Vietnam.
- Travel time through the pass will be cut from 2 hours to 11 minutes.
- The tunnel connects Sapa ward (Lao Cai province) with Binh Lu commune (Lai Chau province).
- Drilling began on August 5, 2026, with the first boreholes on the left tunnel portal on the eastern side.
- The consortium has mobilized 128 personnel and 52 pieces of equipment for the project.
- Site clearance on the Lai Chau side has reached 99%.
- Four batches of construction design drawings have been approved, covering tunnel portals, roadbed, bridges, and auxiliary works.
What Happened
On August 10, 2026, Le Minh Ngan, Secretary of the Lai Chau Provincial Party Committee and Chairman of the Provincial People’s Council, inspected the Hoang Lien road tunnel project site. During the visit, he reviewed progress on construction, site clearance, and disbursement of public investment capital, as well as challenges and solutions to accelerate the timeline.
According to the project management board, the contractor consortium, led by Deo Ca Group, began the first drilling operations on August 5, 2026. So far, 68 prestressed anchors have been installed on slopes 5, 6, and 7, and all 186 anchor holes on slope 2 have been completed, with 93 anchors grouted. Specialized tunnel boring equipment, power, water, ventilation, lighting, and geological monitoring systems are in place for excavation.
Market Context
Deo Ca Group (DCA) is listed on the HOSE exchange and is a leading player in Vietnam’s infrastructure construction sector, particularly in tunnel projects. The company has been involved in several major highway tunnels, including the Deo Ca and Hai Van tunnels. The Hoang Lien tunnel project adds to DCA’s order book and reinforces its expertise in complex mountainous terrain. The stock has been supported by the government’s infrastructure spending push, and this contract win is likely to be viewed positively by investors.
Strategic Significance
For long-term investors, the Hoang Lien tunnel project underscores DCA’s strategic positioning as a go-to contractor for large-scale, technically challenging infrastructure. The project not only provides revenue visibility over the coming years but also enhances DCA’s reputation, potentially leading to more contracts in the Northwest region. The reduction in travel time is expected to boost tourism and economic activity in Sapa and Lai Chau, which could have broader positive implications for the region’s development.
What to Watch
- Progress on tunnel excavation and any updates on construction milestones.
- Financial reports from DCA showing revenue recognition from the project.
- Any changes in government infrastructure spending priorities.
- Potential new contract awards for DCA in other provinces.
- Completion of the remaining design approvals and site clearance on the Lao Cai side.