VINACONEX GOES AGAINST THE GRAIN

Determined to achieve “dual goals”

Vinaconex recently announced the Board of Directors' decision to approve a VND 2,200 billion private placement plan for capital supplement for the Cat Ba - Amatina tourism urban area project, an important project in the Corporation's real estate investment.
At the end of May 2021, the Green Diamond Building project at 93 Lang Ha street, Hanoi, invested by Vinaconex, was also topped out on schedule.
During this time, Vinaconex invited Rang Dong Light Source & Vacuum Flask JSC and Q&T Hi-Tech Polymer Co., Ltd. to invest in Hi-tech Industrial Park 2 - Hoa Lac Hi-Tech Park invested by the Corporation as an investor in infrastructure development. Vinaconex has so far attracted more than ten investors constructing plants and operating stably there.
Vinaconex has actively prevented the Covid-19 pandemic while still determined to ensure its production and business goals. The Corporation has proven its strategy is on the right track when taking advantage of opportunities, pouring trillions of dong into investment projects, generating continuous cash flow, and profits from projects.
In addition to the real estate investment, its construction area remains a bright point. Vinaconex has won many significant bid projects as an independent contractor and joint venture member since the beginning of 2021.
Recently, the Mien Trung Construction Group - Vinaconex joint venture won package no. XL03 of National Highway 45 - Nghi Son sector under the Eastern North-South Expressway project. Vinaconex has participated in four construction and installation bidding packages totaling about VND 10,000 billion at the Eastern North-South Expressway project in the period of 2017 - 2020.
Vinaconex also won a number of high-value construction and installation contracts this year, including two construction and installation bidding packages for the Vinh Tuy Bridge Construction Investment Phase 2; Package No. 37 XL-05 for construction and installation of works under the Expanded Ialy Hydropower Plant project, etc.

Getting the attention of foreign investment

Vinaconex VCG stock was included in the MSCI Frontier Markets Small Cap Index basket in May 2021, as this Corporation always maintains its growth momentum in the first quarter of 2021, after a successful 2020.
Profit after tax was VND 345.3 billion in the first quarter of 2021, up 5.4 times from the same period in 2020. Vinaconex had a pre-tax profit of VND 2,126 billion and a consolidated profit after tax of VND 1,690 billion, earnings per share are VND 3,667 in 2020, which are respectively 2.2 times, 2.15 times, and over 2.5 times higher than year-on-year.
As of March 31, 2021, the Corporation's total consolidated assets were VND 21,497 billion, up 9.6% from the beginning of the year; cash and term deposits totaled VND 2,588 billion, accounting for 12% of total assets.
In addition to the two areas of construction and real estate investment, effective financial investment activities contribute to positive business and production results. Vinaconex currently owns capital in a number of enterprises operating in sustainable fields with high-profit margins such as energy, clean water, education, labor export, etc.
In early 2021, Toyota Tsusho (Japan) acquired 35% of Northern Electricity Development and Investment Joint Stock Company No. 2 (NEDI2) shares with the intention of forming a strategic partnership with Vinaconex to develop hydropower and other renewable energy projects in Vietnam.
The Fubon FTSE Vietnam Fund and the iShares MSCI Frontier & Select EM ETF are two ETFs that have lately included VCG in their portfolios.
Many analysts predict that real estate stocks, which have accumulated for a long time, may eventually lead to the next wave after the alternating waves in stocks of steel, banks, securities, etc. It will cause the stocks of companies with substantial land banks and the best industry-leading development capabilities to become magnets for luring investors.