Surpassing Industry Giants: How Sơn Hải Group Secured Contracts Worth Over 25,000 Billion VND in 7 Years
Sơn Hải Group, a renowned infrastructure contractor in Vietnam, stands out for its unique commitment to guaranteeing the quality of their road construction projects for 5 to 10 years.
Bid records from 2018 to 2024 reveal that Sơn Hải Group has outperformed numerous established companies in the transportation construction industry. During this period, they secured 22 contracts worth a staggering 25,000 billion VND, both independently and through joint ventures.
Notably, 19,114 billion VND of this total came from direct contracts, where the selection of the contractor was made without a public invitation to bid, accounting for 75.8% of their contract value.
In the years 2022 and 2023 alone, Sơn Hải Group was awarded 6 direct contracts, including 2 local projects and 4 national projects under the management of the Ministry of Transport’s Project Management Units.
One notable project is the XL01 contract for the construction of the Vũng Áng – Bùng section of the North-South Expressway in the East, Phase 2021-2025. This project includes the stretch from Km568+200 to Km600+700 and involves surveying and designing construction drawings. On February 10, 2023, the Ministry of Transport’s Project Management Unit 6 issued Decision No. 28/QD-BQLDA6, approving the selection of Sơn Hải Group as the main member of a joint venture for this direct contract. The joint venture included Vinaconex, Construction Company 484, Construction Company 368, and Construction Company 479 Hòa Bình. The designated contract value, including a 10% VAT reserve, was 4,765 billion VND.
Additionally, in August 2023, Sơn Hải Group was awarded a direct contract worth 1,391 billion VND for the construction of the third component project of the Khánh Hòa – Buôn Ma Thuột Highway in the first phase by the Project Management Unit for Transport Construction and Agriculture and Rural Development in Đắk Lắk Province.
In mid-June 2023, the Cái Mép – Thị Vải Port Area Project Management Unit issued Decision No. 89/QD-BQLDA, approving the selection of a joint venture between Sơn Hải Group, Investment and Construction Company 703, and Construction Company 479 Hòa Bình for Package 11 of the third component project of the Biên Hòa – Vũng Tàu Highway in the first phase. The winning bid for this package was 2,099 billion VND.
Beyond Road Construction: Diversification into Energy and Real Estate
Sơn Hải Group’s road construction projects are known for their 5-10 year warranties. Source: Internet
In addition to their renowned road construction projects with extended warranties, Sơn Hải Group has expanded its portfolio into the energy and real estate sectors.
The group is the investor in the Nam Cầu Dài urban area project in Phú Hải Ward, Đồng Hới City, through its subsidiary, Sơn Hải Riverside Company Limited. This project encompasses an area of 434,680 square meters and includes 141 villas, 420 shophouses, and combined business and residential properties.
In 2021, the People’s Committee of Quảng Bình Province decided to convert 5,748.5 square meters of land in Phú Hải Ward, Đồng Hới City, to non-agricultural land for urban and transportation infrastructure purposes. This land was then handed over to Sơn Hải Group to implement the Nam Cầu Dài urban area project.
The People’s Committee of Quảng Bình Province assigned the Department of Construction to execute the contents of the project implementation contract between the Department of Construction, Sơn Hải Group (the investor), and Sơn Hải Riverside Company Limited (the project enterprise).
Sơn Hải Riverside Company Limited was established on February 7, 2020, with a charter capital of 330 billion VND. The company’s main business line is real estate, and its legal representative is Mr. Nguyễn Mạnh Hùng, born in 1984.
According to a change registration in June 2022, Mr. Lê Thanh Hướng was authorized to contribute capital on behalf of Mr. Trần Chí Khoa, amounting to 330 billion VND. Notably, Mr. Lê Thanh Hướng is also one of the six legal representatives of Sơn Hải Group.
Sơn Hải Group was founded in April 1998 and is associated with its Chairman, Mr. Nguyễn Viết Hải. Their primary business lines include the construction of various types of buildings, railways, and roads, as well as land leveling, cultivation, and real estate.
In May 2016, the company increased its charter capital from nearly 370.5 billion VND to over 423.6 billion VND. The shareholder structure comprised Nguyễn Thị Hồng with 64.176% and Nguyễn Thị Hoa with 35.824% ownership.
Just a year later, in May 2017, Sơn Hải Group further raised its capital to over 438 billion VND. At this point, Mr. Nguyễn Viết Hải held 93.632%, while Mrs. Nguyễn Thị Hồng and Mrs. Nguyễn Thị Hoa owned 4.726% and 1.643%, respectively.
By December 2017, the company’s charter capital remained unchanged, but the list of capital contributors was reduced to two individuals: Mrs. Nguyễn Thị Hồng with 98.357% and Mrs. Nguyễn Thị Hoa with 1.643% ownership.
In August 2018, Sơn Hải Group increased its capital to nearly 480 billion VND, with Mr. Nguyễn Viết Hải holding 99.583% and Mr. Lê Thanh Hướng owning 0.417%.
After several changes in legal representatives and shareholder ratios, in July 2021, the company’s charter capital stood at nearly 2,366 billion VND. Mr. Nguyễn Viết Hải held 99.912%, while Mr. Lê Thanh Hướng owned 0.088%.
According to the most recent change registration in April 2023, Mr. Nguyễn Viết Hải serves as the Chairman of the Members’ Council and the company’s legal representative. Additionally, five other individuals, who are leaders within the group, also act as legal representatives of the company.
In terms of financial performance, Sơn Hải Group reported a revenue of 4,084 billion VND in 2023, a decrease of 231 billion VND compared to the previous year. However, thanks to cost-cutting measures, their gross profit increased by 63.8%, reaching 272 billion VND. After deducting taxes and fees, the company’s net profit for 2023 was nearly 41 billion VND, an increase of 800 million VND from 2022.
As of the end of 2023, the company’s total assets amounted to 8,431 billion VND, reflecting a growth of 509 billion VND compared to the beginning of the year.
Sơn Hải Group Fined for Violations in Mineral Exploitation for Construction Materials
On May 31, the People’s Committee of Hà Tĩnh Province issued Decision No. 1365/QD-UBND, imposing an administrative fine on Sơn Hải Group for violations in the exploitation and use of minerals for construction materials.
The decision states that from April 2023 to April 2024, Sơn Hải Group exploited and used minerals (soil for filling and leveling) within the project area of the Vũng Áng – Bùng section of the North-South Expressway in the East, Phase 2021-2025, without registering the area, capacity, volume, method, equipment, and exploitation plan with the People’s Committee of Hà Tĩnh Province, where the minerals were located.
Based on the provisions of Clause 2, Article 43 of Decree No. 36/2020/ND-CP dated March 24, 2020, of the Government on sanctioning administrative violations in the fields of water resources and minerals, the People’s Committee of Hà Tĩnh Province decided to impose an administrative fine of 120 million VND on Sơn Hải Group.
