Dongbu Construction Restarts Overseas Business After 40 Years... Secures Orders in Laos and Cambodia

Dongbu Construction's overseas business, which had been stagnant for over 40 years, is regaining momentum as it announces consecutive overseas construction project wins in countries such as Laos and Cambodia.

According to industry sources on the 14th, Dongbu Construction was selected on the 10th as the contractor for the Laos Mekong Riverside Comprehensive Management Project (Phase 2), commissioned by the Vientiane Public Works and Transport Department in Laos. This project involves constructing approximately 8 km of embankments along the Mekong River in Vientiane City, Laos, reinforcing the riverbank, and developing riverside parks and roads, with a budget of about 51.8 billion KRW.

This project is funded by the Economic Development Cooperation Fund (EDCF) of the Export-Import Bank of Korea to prevent flood damage and embankment erosion risks and to improve the quality of life for Vientiane citizens. Dongbu Construction is leading the project in collaboration with Kumho Construction, and the construction is scheduled to proceed over 48 months after groundbreaking.

Additionally, in June, Dongbu Construction, together with Kumho Construction, secured a flood damage reduction project commissioned by the Ministry of Water Resources and Meteorology (MOWRAM) of Cambodia. This project, valued at approximately 59 billion KRW, aims to develop irrigation and prevent flood damage near Banteay Meanchey Province in northwestern Cambodia. It includes the construction of three multipurpose reservoirs, the repair and new construction of irrigation canals totaling 87.6 km, as well as the building of bridges, sluices, and drainage structures. The project duration is 36 months, with completion expected in 2024.

Moreover, Dongbu Construction previously won the Laos Savannakhet Rural Comprehensive Development Project in November 2019, together with Ilseong Construction. Commissioned by the Laos Ministry of Agriculture and Forestry, this project involves constructing and repairing water purification plants and irrigation canals, land leveling, a comprehensive rice processing facility, and village road repairs in Savannakhet Province.

Regarding the background of actively pursuing overseas opportunities after 40 years, a Dongbu Construction official explained, "It is a measure to diversify our business portfolio in preparation for the domestic construction market downturn."

Given Dongbu Construction's strengths in civil engineering works such as ports and tunnels, it plans to actively consider infrastructure development projects in developing countries funded by the EDCF.

Dongbu Construction, formerly known as Miryung Construction, was one of the early domestic construction companies to enter overseas markets. It mainly operated in the Middle East, boasting a distinguished project history including the Saudi Jubail Land Naval Base, the Taraba Dam in Taif, Saudi Arabia, and the headquarters of the Saudi Ministry of Defense and Aviation. Notably, the 1982 Saudi Ministry of Foreign Affairs project, valued at 150 million USD, was successfully completed and received the Best Building Award from the European Architects Association.

A Dongbu Construction official stated, "The projects in Laos and Cambodia signal the full-scale start of our overseas business," adding, "We will make this year the foundation year for our overseas business and gradually expand its scope, aiming to once again lead the way in overseas expansion as Dongbu Construction did in the past."