Deo Ca Group (HHV) Wins VND 1,333B Expressway Package XL-01A

Overview

Deo Ca Group (HOSE: HHV) has been awarded construction package XL-01A under the Ho Chi Minh City - Trung Luong - My Thuan expressway expansion project, with a contract value of more than VND 1,333 billion. The award was approved by the HHV board under Resolution No. 26/2026/NQ-HDQT dated 24 September 2026 and disclosed to the State Securities Commission and the Ho Chi Minh City Stock Exchange. The project’s BOT investor consortium includes both HHV and CII, tying the contract to two listed tickers.

Key Facts

• Contract value: more than VND 1,333 billion, inclusive of VAT and contingency costs, equivalent to roughly USD 53.3 million.
• Package scope: survey, detailed design and construction of the Km49+620 - Km85+160 section, including bridges.
• Additional scope: weigh stations, traffic safety and lighting systems, toll equipment and ITS systems across Km49+620 - Km105+454.
• Counterparty: Công ty TNHH BOT Cao tốc Sài Gòn - Mỹ Thuận, the project BOT vehicle.
• Scheduled completion: all contract works before 20 October 2028.
• Project scale: over 96 km, total investment above VND 36,000 billion, no state budget funding.
• Investor consortium: Deo Ca Group, CII, Tasco and Hoàng Long; toll collection payback period of 17 years 3 months.

What Happened

The HHV board of directors issued Resolution No. 26/2026/NQ-HDQT on 24 September 2026, approving the contract with Công ty TNHH BOT Cao tốc Sài Gòn - Mỹ Thuận for package XL-01A of the HCMC - Trung Luong - My Thuan expressway expansion. Under the resolution, the BOT company assigns and HHV accepts responsibility for construction, installation and related works within the package. The company filed the disclosure as an extraordinary information release with the State Securities Commission and the Ho Chi Minh City Stock Exchange.

The package covers survey and detailed design plus construction of the Km49+620 - Km85+160 segment, including bridge structures. It also extends to weigh stations, traffic safety and lighting systems, toll booth equipment and ITS infrastructure along the Km49+620 - Km105+454 stretch. The contract value is stated at more than VND 1,333 billion including VAT and contingency, with all works expected to finish before 20 October 2028.

Market Context

HHV closed at VND 9,150 on 24 September 2026 on HOSE, while consortium partner CII closed at VND 12,650. The award lands in a period when Vietnamese infrastructure contractors are competing for a limited pipeline of large transport packages, and when the government’s public-investment push has kept construction and materials names in focus. The HCMC - Trung Luong - My Thuan expansion is one of the country’s flagship transport projects, connecting Ho Chi Minh City with the Mekong Delta and relieving pressure on National Highway 1.

Strategic Significance

For HHV, the package converts its position as a consortium equity holder in the BOT vehicle into a direct construction revenue stream, effectively capturing margin on both the investment and the build side of the same asset. That dual role is central to the Deo Ca model and reinforces its order book visibility through 2028. For CII, the award is neutral to mildly supportive: it confirms execution momentum on a project where CII holds consortium exposure, without changing CII’s own contracting position. The absence of state budget funding means execution risk rests on private capital and credit, so delivery discipline matters more than headline contract value.

What to Watch

• Monthly or quarterly HHV disclosures on XL-01A construction progress and disbursement against the VND 1,333 billion contract value.
• Any additional packages awarded to HHV or consortium members on the same expressway project.
• Credit drawdown progress on the roughly VND 27,100 billion debt component of the project’s funding structure.
• HHV and CII quarterly earnings releases for construction revenue recognition from the project.
• Toll collection start date and any revision to the 17-year 3-month payback schedule.