Vietnam’s $130 Million Mountain-to-Sea Project Hits New Milestone, Revealing Surprising Figures

In the face of treacherous mountainous terrain, relentless heavy rainfall, and significant challenges with materials and power supply, this project achieved the unimaginable.

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The Deo Ca Group has announced a significant update on the western left branch of the Phoenix Tunnel, spanning 1,705 meters. This section is part of the Khanh Hoa – Buon Ma Thuot Expressway Project Phase 1, executed by the XL01 Joint Venture. The tunnel breakthrough was officially achieved on October 16, 2025.

The XL01 package of the Khanh Hoa – Buon Ma Thuot Expressway (Component 2) covers a 11-kilometer stretch, with a total contract value of VND 3,083 billion. Alongside the roadway, the Phoenix Tunnel includes 10 bridges. The project is overseen by the Project Management Unit 6 (under the Ministry of Transport, now the Ministry of Construction), with the XL01 package led by the Deo Ca Group as the primary contractor.

The Phoenix Tunnel, measuring 1.7 kilometers, is a critical component of the expressway project. Its construction has been closely monitored by the contractor to ensure quality and adherence to timelines. Initially, the group anticipated completing the tunnel by late November 2025.

According to Mr. Ngo Huu Khoa, Director of the XL01 Package Management Board, as of mid-October 2025, the Phoenix Tunnel construction—a key project focus—has entered its final stretch. The left branch was successfully tunneled through on October 16, while the right branch has reached 1,391 meters out of 1,700 meters, or 82% completion. Efforts are underway to finish the remaining section in November 2025.

The western left branch of the Phoenix Tunnel, spanning 1,705 meters, has been successfully tunneled through. Photo: Deo Ca Group

To meet project deadlines, the Deo Ca Group-led joint venture has mobilized 575 personnel, including engineers and workers, along with nearly 180 specialized pieces of equipment across 21 construction sites. These include 5 tunnel sites, 16 bridge and road sites. As of now, the XL01 package has achieved over 40% of its contract value, with the Phoenix Tunnel accounting for the largest share at over 90% completion. Bridge, culvert, and road works are progressing simultaneously to ensure seamless connectivity upon tunnel completion.

Despite these achievements, the project faces challenges. The tunnel’s complex geology, characterized by weathered rock mixed with weak clay, poses risks of water seepage and collapse, requiring flexible and safe handling measures. The rugged mountainous terrain, prolonged heavy rains, and difficulties in securing materials and electricity further complicate construction efforts.

In response, the Management Board has implemented advanced technical solutions, including enhanced grouting, additional anchors, steel mesh, and preliminary concrete spraying. A real-time monitoring system tracks tunnel deformation. Workforce allocation is optimized across sites, with round-the-clock operations to maintain progress while ensuring safety.

The completion of the left tunnel branch marks a pivotal milestone, streamlining fuel, material, equipment, and labor transportation. This advancement facilitates accelerated progress across the entire project.

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