VINACONEX – 34 YEARS OF ATTAINING A FOOTHOLD IN THE MARKET

Vinaconex started out as an enterprise specializing in management of Vietnamese workers in overseas construction, but gradually risen to the top in the domestic construction industry, and on track to become the nation's leading corporation in the industries of construction, real estate, and financial investment.

Vietnam Construction and Import-Export Corporation (VINACONEX) (the former Overseas Construction and Service Company) was established on September 27, 1988 under the Ministry of Construction. The original goal was to meet the management requirements of the Vietnamese construction industry for workforces working abroad.
Vinaconex has skyrocketed despite the hardship during the renovation period. On December 1, 2006, they completed their restructuring from a wholly state-owned enterprise into a joint stock company with controlling charter capital held by the State, and have operated across a variety of industries, in which construction and real estate investment are two core areas of business.

According to a Vinaconex representative, the Corporation’s listing on HOSE is a significant milestone that marks a new stage in its development, opening up many opportunities for cooperation, attracting more strategic and long-term capital to support the production and business activities, investment in project development, while providing benefits to shareholders, investors and employees, and advancing the country.

At that time, Vinaconex also identified construction, real estate, and financial investment as its three main pillars for the next growth path. The Corporation, which has held the position of the top business in the construction industry, is aiming to reach the top three largest real estate investors in Vietnam, and become the leading economic enterprise in the fields of construction, real estate investment and business in both Vietnam and the region.
“It has been about 4 years after the ownership transformation, which is not a long time but a remarkable development path for Vinaconex Corporation. Thanks to the proper development plan and smooth coordination, Vinaconex has always affirmed its position as one of the largest enterprises in Vietnam, maintaining sustainable growth over the years, maximizing benefits for our shareholders, ensuring jobs, and increasing incomes for our employees”, the Vinaconex's representative said.

Marking brand features in three core areas

By the end of 2021, despite Vietnam's economy being severely impacted by the pandemic, Vinaconex could still “swim against the tide”, with profit after tax reaching VND 520 billion. This amount was VND 719.64 billion in the first six months of 2022, exceeding more than half of the year’s profit target. Vinaconex has always maintained an increasing dividend payout ratio every year. Particularly in 2021, Vinaconex paid dividends at the rate of 28% including 18% cash and 10% shares. This is its highest dividend rate since its first listing until now.

Regarding the construction field, Vinaconex brand has been associated with large-scale key infrastructure projects having a total investment of hundreds to trillions VND, such as the construction investment project of Vinh Tuy bridge phase 2, the bidding packages under the Eastern North - South Expressway project, the headquarters construction project for Hanoi People's Court; Long Thanh International Airport phase 1 project; Terminal T2 – Phu Bai International Airport project, the Hanoi Children’s Palace project; Nam Dinh Provincial General Hospital; Hospital K – branchese 1,2; the expanded Yaly Hydropower Plant, etc.
Apart from the massive scale, and huge construction workload, these projects also require high-quality construction with technical arts concerns at the forefront. Vinaconex has constantly worked to develop technology, advance equipment and machines, and race against the clock to complete projects. Many projects were completed earlier than expected.

Vinaconex brand has kept winning over foreign investors through large projects such as the Mikazuki Spa & Hotel Resort project (Da Nang) of Japanese investor - Mikazuki Corporation; Long Son petrochemical refinery project, Ba Ria - Vung Tau; Cheng Long project (Binh Duong); Vung Ang 2 Thermal Power Plant; investment project to build the clean industrial park in Hung Yen, etc.
Regarding real estate, Vinaconex currently owns a land bank of more than 2,000 hectares and keeps expanding it, with the goal of creating projects of regional and global stature while imbued with Vietnamese cultural quintessence.

The outstanding names can be listed as Cat Ba - Amatina eco-tourism resort urban area with a total area of over 172 hectares; Green Diamond apartment and office complex at 93 Lang Ha (Hanoi); the Hoa Binh Boulevard urban area project in Mong Cai city, Quang Ninh; Thien An urban area; Kim Van Kim Lu urban area; Tam Ky resort (Quang Nam); Tuy Hoa tourist area (Phu Yen), etc…

Vinaconex also leaves its foothold in the field of investment and construction of industrial real estate with the Dakba Hydropower Plant project (Quang Ngai); Hi-Tech Industrial Park 2 - Hoa Lac Hi-Tech Park; Van Ninh General port (Quang Ninh), etc.

Not only securing a foothold in the domestic market, but Vinconex is also continually increasing its competitiveness to pursue international business investment opportunities. This Corporation has cooperated with many large enterprises in more than 60 countries and territories in different fields.

In the past three years, Vinaconex has developed tight cooperation with many partners from countries with advanced science and technology, including European countries, Japan, Korea, Singapore, China, etc. Vinaconex's reputation and construction capacity are highly appreciated by numerous foreign investors via the completed projects.
“So far, we have not assigned a Vietnamese general contractor to do any project, until we cooperated with Vinaconex. I find that Vinaconex has achieved excellent results and is fully capable of meeting our requirements. VINACONEX has completed a high quality project at a very reasonable cost", said Mr. Odaka Yoshimune, Chairman of ODK Mikazuki Vietnam Co., Ltd.

“The Vinaconex humans do not rest on laurels as the new conquest would resume tomorrow. Only when there is desire does one arrive at their destination and in Vinaconex is simply a place where the desire never goes away and keeps going on.”, the representative noted.

Dantri.vn