UDIC - A New Model for Hanoi's Modernisation

UDIC - A New Model for Hanoi's Modernisation

The Urban Infrastructure Development Investment Company (UDIC) is one of Hanoi's four new corporations operating under the Parent Company-Subsidiaries pilot model. Addressing the inauguration ceremony of UDIC in December 14, in Hanoi, the Chairman of Hanoi Municipal People’s Committee, Mr. Nguyen Quoc Trieu, said: "The development planning for Hanoi capital to 2010 and the vision to 2020 set forth many heavy tasks. We share the hope that the establishment of the Urban Infrastructure Development Investment Company will contribute to the development of urban infrastructure in a civilized and modern manner. Its construction works must be of high quality, connected with the overall architectural landscape, and in accordance with international standards."

Mr. Hoang Quang Long - General Director cum Secretary of UDIC's Party Committee - said: "The company is established under the objective requirements of the market economy. As the construction market is developing, the law of competition is more relevant and there is a greater need to enhance financial and technological capacity as well as management expertise. Indeed, over the past years, small-size construction investment companies with limited financial strength and outdated technologies have been marginalized from the construction market in Hanoi and Vietnam as a whole. At the threshold of the international and regional economic integration and in the face of the ever sharper competition, building companies are under greater pressure to mobilize all capacities to create their own competitive advantages and penetrate new markets. Amongst this trend, UDIC is not an exception. Furthermore, the formation of UDIC is also attributed to Hanoi’s urbanization and modernization.

The Urban Infrastructure Development Investment Company operates according to the multi-ownership Parent company-Subsidiary model. This model is different from the model of Corporation-90, Corporation-91 in terms of the nature of its economic relationship. With the Parent company-Subsidiary model, this relationship has been shifted from administrative association to financial investment mechanism; in its capacity as the owner of investment capital, the parent company will govern its subsidiaries at different levels based on the capital contribution of the parent company and the legal status of member companies. The dominance of the parent company is also supported by its modern production technologies, management and marketing expertise, and established brand names.

The development orientation of UDIC in the future is to diversify business lines, expand business scale and coverage with a view to gaining a foothold in the national construction market, with the main focus on civil engineering investment, production of building materials and consultancy on building investment. Besides, the company will contract to build urban areas, industrial zones, industrial and civil works, housing, roads, brick and concrete. It will also participate in large-scale technical infrastructure works such as national bridges, tunnels, roads, power cables of high tension and medium tension, production of high-grade ceramics, porcelain and light concrete. 

In the immediate future, UDIC will go ahead with the implementation of urban area development projects in Trung Yen, Yen Hoa, Southern Tran Duy Hung Road, Southern Thang Long, Northern Co Nhue-Chem, Nam Hong, and Hoang Van Thu as well as high-rise apartment buildings in 25, 27 Lang Ha, and 71 Nguyen Chi Thanh. It will create more channels to mobilize capital at home and abroad for development investment; enhance its financial management capacity for more effective capital use; strive to establish a dynamic financial system in line with the company’s business strategy and set up a member company specialized in financial matters. The company has submitted to Hanoi Municipal People’s Committee the tenders for construction of the 2,300-meter approach road and the overpasses at the two ends of Vinh Tuy Bridge under the Building-Transfer mechanism, as well as Allotment No. 31, 32, and 33 of the Northern Red River Urban area.

• Phuong Kim