“70-Employee Firm with $84M Capital Proposes North-South High-Speed Rail Without Government Funding: Unveils Real Estate Projects Existing Only on Website”

According to the Government Information Portal, on November 27th, Deputy Prime Minister Nguyen Hoa Binh chaired a meeting with leaders from various ministries, sectors, and enterprises regarding the North-South High-Speed Railway Project at the Government Office.

Discovery Group stands out with capital equivalent to only 0.2% of the total project investment

The meeting was attended by five enterprises that have expressed interest in the project, including: Vietnam 3000 LLC – Vietnam Investment and Development Group, Discovery Corporation JSC, Vietnam Railway Transportation JSC, Truong Hai Group Corporation (Thaco), and Vinspeed High-Speed Railway Investment and Development JSC.

Among them, Discovery Corporation JSC drew attention by expressing its desire to participate in investment under a revenue-based capital recovery scheme. However, internal indicators reveal a significant gap compared to the scale of this mega-project.

According to Mr. Nguyen Nam Thieu, Chairman of the Board of Discovery Corporation JSC, the company currently has approximately 70 employees and a total capital of around 2,000–3,000 billion VND, which is only about 0.2% of the project’s total investment (67 billion USD).

Speaking at the meeting, Deputy Prime Minister Nguyen Hoa Binh emphasized that this is an extremely large-scale project with high technological requirements, and it is essential to engage in discussions and understand the investors’ intentions. He noted that some enterprises approached the meeting with great seriousness, preparing detailed and meticulous reports, while others submitted cursory reports with unclear ideas.

“An enterprise with only 70 employees and a total capital of 2,000–3,000 billion VND cannot meet the project’s requirements,” the Deputy Prime Minister stated.

According to the Deputy Prime Minister, the Government organized this consultation meeting with enterprises not only to directly listen to their plans and solutions but also to assess the actual capabilities and intentions of the investors.

Through this consultation, accurate and comprehensive information will be provided to the public, helping to distinguish between enterprises that are seriously prepared and capable of execution, and those making unfounded claims. This step is crucial to gather sufficient information before deciding on the most feasible and effective investment approach.

Discovery Group commits to not increasing public debt with the “Borrow-and-Repay” principle

According to information published on Discovery Corporation JSC’s website, on September 21st, the company announced its technical and financial research proposal for the North-South High-Speed Railway Project.

Notably, the group pledged to raise 100% of the capital from the company and international partners, rather than relying on the state budget. According to the group’s representative, this model not only reduces public debt pressure but also opens up strategic cooperation opportunities with global technology and financial corporations, laying a solid foundation for the project’s feasibility.

In terms of technology, Discovery Group selected solutions from the European Railway Association (ERC). Key technologies under consideration include: ATC (Automatic Train Control) – a system that ensures safety at speeds up to 320 km/h; dedicated 1,435 mm gauge tracks, completely separated from road traffic; and UrEDAS – Japan’s exclusive earthquake detection system, which automatically applies brakes at the first sign of tremors.

By early November, Discovery Group officially proposed investing in the project, with a total capital of approximately 63 billion USD, a 6-year construction timeline (plus 1 year of preparation), and a 69-year commercial operation period, after which all assets and technology will be handed over to the state.

The group is implementing the Government’s directive to avoid increasing public debt, adhering to the “Borrow-and-Repay” principle, transparently mobilizing capital through international cooperation, and establishing a robust financial structure to mitigate public debt risks.

Questions about the authenticity of projects

Discovery Group originated as Discovery Vietnam Joint Stock Company in 2009 and officially expanded into a multi-sector conglomerate in 2016, operating in real estate, semiconductors, petroleum, minerals, and M&A.

In the real estate sector, according to the company’s website, the group is the developer of projects such as Discovery Point, Discovery Angel, Discovery Riverside, Discovery Charm, Discovery Royal, Discovery Aqua, Discovery Luxury, and Ha Long Discovery Tower.

However, in reality, only Ha Long Discovery Tower and Discovery Luxury provide details on area, location, scale, and related information. Discovery Angel is said to have a total area of 26 hectares, located in Dinh Trung, Lien Bao, Vinh Yen City, Vinh Phuc Province, but there is no matching information available. The remaining five projects only list images and names, with areas mentioned on the group’s website, but no additional details are provided.

In the semiconductor sector, Discovery Group claims to have one subsidiary operating in electronics, information technology, semiconductors, and automation. Its main products include comprehensive IT solutions, peripheral products, and software park chains. Its primary markets are Japan, France, and Vietnam.

In the petroleum sector, the group states it owns and operates a nationwide network of petrol stations, supplying RON 92, RON 95, diesel, and FO. It also provides liquefied petroleum gas (LPG) and natural gas for household and industrial use.

In mineral exploitation, the group describes itself as one of Vietnam’s leading enterprises in the extraction and processing of valuable minerals, particularly titanium, silicon, and coal.

Regarding its corporate structure, according to the National Business Registration Portal, Discovery Group has an initial chartered capital of 260 billion VND, with four founding shareholders: Discovery Vietnam Investment JSC, Danko Investment & Tourism JSC (36.9%), Ms. Nguyen Ngoc Anh (25%), and Mr. Nguyen Tien Thieu (38.07%).

Although the shareholder structure has changed, the chartered capital remains unchanged, and no capital increases have been recorded to date, according to the National Business Registration Portal.

According to tax information, in mid-2019, the company had a total of 20 employees. The most recent update in 2023 reported 10 employees.