VIETNAMESE ENTERPRISES AND THE ASPIRATION FOR URBAN UNDERGROUND DEVELOPMENT

With thorough preparation, FECON has become the go-to name when discussing urban underground projects. The company has established itself as one of the symbols of the construction industry, especially in underground urban development. FECON has grown through its capabilities, gaining strength with each project and achieving increasing success over time.

Urban Underground Infrastructure – An Inevitable Choice for Major Cities

The history of global urban development took a crucial turn in the early 20th century when large cities shifted from horizontal expansion to exploring underground spaces. A prime example is New York, which faced severe overpopulation in the 1900s and boldly built its first subway system in 1904. This decision marked a new era of urban development, transforming New York into one of the world's most modern cities. After 120 years, New York now boasts over 400 stations, a total route length of 410 km, and serves more than 5 million passengers daily.

Tokyo is another prime example of successful underground space utilization. After World War II, faced with severe space shortages, Tokyo developed an extensive underground network, including commercial centers, train stations, and tunnels. Today, Tokyo’s underground infrastructure not only resolves traffic issues but has also become an integral part of urban life. Currently, Tokyo Metro operates 13 lines with a total length of approximately 228 km, 290 stations, and serves over 10 million passengers daily.

China has also made remarkable progress in developing urban rail systems in recent decades. Since the construction of the first metro line in Beijing in 1969, followed by Tianjin in 1984, China now has the world's longest urban rail network, spanning over 10,000 km across 53 cities with 306 routes.

Challenges Faced by Major Cities in Vietnam

Vietnam’s major cities, particularly Hanoi and Ho Chi Minh City, face similar challenges. According to statistical data, Hanoi's population is expected to reach 9.5 million by 2030, while Ho Chi Minh City's population could exceed 11 million. The population density in Hanoi’s central districts has surpassed 25,000 people/km², with some districts in Ho Chi Minh City (such as Districts 3, 4, 10, and 11) reaching densities of up to 40,000 people/km². The land allocated for transportation is only 5-10%, far below the international standard of 20-25%. Traffic congestion in these two cities has worsened, with average traffic jams increasing by 30% over the past five years, placing significant pressure on living spaces, transportation infrastructure, and public amenities.

Despite extensive surface-level urban development, Vietnam has yet to exploit underground spaces effectively. Daily traffic congestion worsens, especially during rush hours and holidays when the urban transport system is virtually paralyzed. The phenomenon of streets turning into rivers during heavy rains has become increasingly common in Hanoi, Ho Chi Minh City, and Can Tho.

Given this reality, utilizing the third dimension—underground space—offers a dual advantage: significantly increasing infrastructure capacity while preserving surface space for urban aesthetics and enhancing residents’ quality of life. Urban underground construction provides multiple benefits, such as minimizing land clearance costs, enabling multi-modal underground transportation connections, and creating limitless underground spaces for public facilities, commercial activities, entertainment, and even national security purposes when necessary.

In rapidly growing urban areas where planning management remains insufficient, such as Hanoi and Ho Chi Minh City, underground development can alleviate pressure on existing urban spaces and fill functional gaps that rapid development has failed to address.

The reality in Vietnam shows that traffic congestion in many major cities is severe, and the available land for expanding urban roads is nearly exhausted. To widen urban roads, cities must acquire land along both sides, incurring massive compensation costs and facing significant challenges in relocating residents. Therefore, underground space presents the only viable solution for urban transport, reducing surface congestion at a reasonable cost and with better control over project timelines.

In recent years, Hanoi has begun focusing on underground projects to alleviate traffic congestion, such as the Trung Hoa – Thang Long Boulevard underpass, Le Van Luong – Khuat Duy Tien intersection underpass, Nguyen Trai – Nguyen Xien underpass, and the Nhon – Hanoi Metro Line project. These efforts have helped reduce congestion in western Hanoi but only address immediate concerns in a small portion of the capital.

In Ho Chi Minh City, the Saigon River Tunnel, connecting District 1 to District 2 (now Thu Duc City), has been operational since 2011. This project has significantly reduced travel time between the eastern and western parts of the city and has played a crucial role in economic and social development over the past decade. The upcoming Ben Thanh – Suoi Tien Metro project is also expected to be a landmark in large-scale public transportation, linking the city's northern areas with the central business district.

Meanwhile, Da Nang, Vietnam’s third-largest city, is actively planning and developing underground infrastructure, including the Han River underpass and an airport tunnel to connect the western ring road with Duy Tan Street in the city center.

According to the General Planning for Hanoi’s Urban Development to 2030, with a vision to 2050, the underground transport system will include 10 metro lines with a total length of 413 km, of which approximately 25% will be underground, along with three monorail lines spanning 44 km. Ho Chi Minh City aims to complete eight metro lines totaling over 200 km by 2035, along with various underground roads and intersections while leveraging underground spaces around metro stations for commercial and recreational purposes.

Underground urban construction is emerging as an inevitable trend, offering both opportunities and challenges for Vietnamese construction enterprises, particularly FECON.

“The utilization, exploitation, and development of underground space offer numerous benefits. It enhances the efficiency and quality of urban planning, increases land use value, and optimizes urban land resources for housing and public infrastructure. Additionally, it helps address urban transportation issues and minimizes the impact of environmental pollution,” said Ms. Nguyen Mai Trang, Executive Director of the GE Institute for Underground Construction Foundations.

Although regarded as "the market of the future," not all enterprises dare to step into this field due to technical and financial barriers. While the construction, management, and utilization of underground space are well-established worldwide, they remain relatively new concepts in Vietnam. In particular, the surveying, construction, and maintenance of underground structures demand advanced technology and an exceptionally high level of technical expertise. This poses a significant challenge for Vietnamese contractors, requiring them to invest capital, time, and workforce training to keep pace with cutting-edge global technologies.

Beyond technology, Vietnamese enterprises aiming to dominate the urban underground construction market must also compete with foreign companies on home soil. These international competitors have extensive experience in underground construction projects in developed countries such as Japan, South Korea, China, France, and Italy. Therefore, for Vietnamese construction companies to play a deeper role in urban underground projects, strong support and favorable conditions from the State and Government are essential.

“The State should establish specific mechanisms to create opportunities for Vietnamese enterprises to participate in pioneering projects that require advanced technology. Vietnamese businesses are eager to contribute and aspire to be part of the construction of significant national infrastructure projects,” Ms. Trang expressed.

Vietnamese Enterprises and the Ambition for Urban Underground Development

Recognizing underground urban projects as a crucial future trend contributing to national infrastructure modernization, FECON has steadily realized its vision. Recently, media coverage has highlighted images of the TBM (Tunnel Boring Machine) at Hanoi’s Metro Line 3 project, operated by FECON engineers. While the public anticipates Hanoi’s first metro tunnel, few realize that FECON has been preparing for this moment for decades.

The journey began with the dream: “Vietnam will have metro systems someday. Why shouldn’t FECON be the first to build them?” With this ambition, FECON established a subsidiary specializing in underground projects a decade ago, assembling a team of young PhD and Master’s graduates from France, Germany, Japan, and Singapore. The company also partnered with the Asian Institute of Technology (AIT) to train 30 specialized geotechnical and underground engineering professionals over five years.

FECON’s foray into underground urban projects began with a small grouting contract at Ho Chi Minh City’s first metro project. This was followed by foundation works and TBM operation for Package 1A of the Metro Line 1 (Ben Thanh – Suoi Tien). In June 2018, FECON achieved a milestone by completing the second tunnel of the TBM-driven section of Metro Line 1. FECON became the first Vietnamese contractor to operate a TBM under Japanese experts' guidance. The same year, FECON joined Hanoi’s Metro Line 3 (Nhon – Hanoi Station) as a subcontractor for nearly all underground construction packages.

Today, FECON is not only Vietnam’s first contractor to operate a TBM but also specializes in related geotechnical surveys, deep foundation works, underground station structures, waterproofing, and ground improvement techniques. The company integrates advanced monitoring and automated warning systems, handling some of the most challenging aspects of underground construction.

Explaining the reasons behind FECON’s successful collaboration with foreign general contractors from Japan and South Korea on urban railway projects—including Metro Line 1 in Ho Chi Minh City and Metro Line 3 in Hanoi—Mr. Nguyen Quoc Bao, Deputy General Director of FECON, stated: "This achievement stems from the meticulous preparation and unwavering dedication of our highly skilled engineers and technical workforce—individuals who represent the finest expertise within our company. Recognizing the complexities of metro construction, FECON embarked on a rigorous preparation process as early as 2012. We sent 30 engineers to pursue a specialized master’s program in underground construction at the Asian Institute of Technology (AIT) in Thailand and dispatched 60 workers to Malaysia and China for advanced shield tunneling training. These personnel also gained hands-on experience in a Japanese infrastructure project. FECON’s workforce is not only comprehensively trained but also benefits from close technical cooperation with esteemed partners from Japan and Italy. These strategic investments in human capital and technological expertise have positioned FECON as the preferred partner for leading Japanese and South Korean general contractors, enabling us to execute some of the most technically demanding aspects of the Metro projects."

Beyond metro construction, FECON has made a profound impact on various underground urban infrastructure projects, including major traffic tunnels such as Le Van Luong – Khuat Duy Tien underpass,  Trung Hoa – Big C underpass (Hanoi), G package of Ho Chi Minh City’s wastewater treatment project, and Yên Xa wastewater treatment plant (Hanoi)

Through extensive preparation and steadfast commitment, FECON has established itself as the preeminent name in Vietnam’s underground construction sector, emerging as a symbol of excellence within the broader construction industry. The company’s steady growth, fueled by its expertise, has enabled it to undertake increasingly complex projects and achieve significant milestones.

As the first Vietnamese enterprise to actively participate in urban underground infrastructure development, FECON has navigated numerous challenges. Mr. Nguyễn Quốc Bảo elaborated: "With decades of experience in executing highly complex underground projects across Vietnam, FECON fully understands the multifaceted difficulties inherent in this field—ranging from financial constraints and workforce development to the demands of cutting-edge technology. However, each challenge has only strengthened our resolve. Our unwavering commitment is to excel in every project and contract, ensuring that from 2025 onward, FECON will stand as the premier choice for Vietnam’s critical underground infrastructure."

Echoing this vision, Mr. Pham Viet Khoa, Chairman of the Board of Directors and Founder of FECON, affirmed: "For over two decades, FECON has undertaken a transformative journey. Today, our greatest source of pride is that the FECON brand has become a National Brand, synonymous with technological innovation and strategic infrastructure projects. Looking ahead, FECON remains firmly committed to supporting the Party and Government’s vision of achieving one of Vietnam’s most pivotal strategic breakthroughs: developing a modern, integrated infrastructure system that will drive economic and social progress from 2025 to 2030, with a long-term vision toward 2045."

The realization of a modern and integrated urban infrastructure, with a strong emphasis on underground construction, requires the collective effort of multiple stakeholders. While FECON is at the forefront of this endeavor, it is only through the dedication of enterprises that share the ambition, expertise, and perseverance to drive national progress that Vietnam’s urban development goals will be fully realized.

With this commitment, the future of Vietnam’s metropolitan cities—characterized by seamless, modern infrastructure—will soon become a reality. Underground spaces will not only enhance public utilities and urban living standards but will also serve as critical assets in ensuring national security and defense, contributing to the nation’s long-term development and prosperity.