Fri , 24/09/2021, 08:23:01 (GMT+7)
Having 33 years of experience, high-quality staff, and strong financial capacity, Vietnam Construction and Import-Export Corporation Vinaconex (HOSE: VCG) is a name of special concern after the restructuring process, operating as an enterprise without state capital. Notably, despite being severely impacted by the COVID-19 pandemic, Vinaconex proved to be more stable in the development orientation of the three-legged stool: construction, real estate, and financial investment.
Advantages of a leading contractor
According to the Ministry of Planning and Investment, over 5,000 public investment infrastructure projects will be constructed between 2021 and 2025, with an average capital of VND 210 billion per project - 2.4 times higher compared to those in the 2016-2020 period. In which the outlay goal is VND 2.87 quadrillion, more than a 40% increase over the previous period.
This demonstrates that skilled construction contractors, such as Vinaconex, would benefit a lot from the government's public investment strategy, which includes the priority policy for infrastructure projects.
Vinaconex is now ranked among the top five most prestigious construction contractors in Vietnam, according to the Vietnam Report 2021 evaluation.
With outstanding capacity, Vinaconex keeps winning many key projects worth tens of thousands of billions of VND such as packages of the Eastern North-South Expressway project (Vinh Hao - Phan Thiet, Phan Thiet - Dau Giay, Mai Son - National Highway 45, NH 45 - Nghi Son, Nghi Son - Dien Chau sections), Vinh Tuy bridge construction investment project phase 2, Hanoi People's Court project, The Expanded Ialy Hydropower Plant project, along with many other projects using state budget.
Vinaconex contractor always meets the most stringent construction requirements of local and foreign investors in industrial and civil construction. Typically, the Mikazuki Spa & Hotel Resort complex in Da Nang with a total investment value of up to US$ 100 million (equivalent to VND 2,400 billion) is the first project that a Japanese investor assigns to a Vietnamese contractor as a general contractor. Its first phase was handed over by the general contractor Vinaconex as scheduled despite obstacles and the Covid-19 epidemic. Moreover, there’s a series of other projects that were implemented on schedule with high quality such as the Long Son Petrochemical Complex, Tan My Hydropower Plant, BW Bau Bang Project; Foxconn project, etc.
Foresights on real estate and financial investment
With a long-term vision and orientation to build major projects, Vinaconex has accumulated a land bank of up to 2,000 hectares in many locations, including Hanoi, Hai Phong, Quang Ninh, Da Nang, Quang Nam, Phu Yen, and so on. In the ongoing strategic planning, Vinaconex aims to attain a land bank of 5,000 hectares by 2025.
It can be listed as the Cat Ba - Amatina tourist urban area project with a scale of 172 hectares and a total investment of nearly VND 11,000 billion on Cat Ba island (Hai Phong); the Green Diamond office and luxury apartment complex project at no. 93 Lang Ha Street (Hanoi), KM3 - KM4 Urban Area in Hai Yen ward, Mong Cai city, (Quang Ninh province), the Expanded Hoa Binh Boulevard urban area, Thien An new urban area (Da Nang), etc.
Furthermore, Vinaconex is simultaneously investigating and preparing the deployment of several real estate projects in other localities of the country.
Vinaconex also invests in the development of industrial park projects (typically Hi-tech Industrial Park 2 - Hoa Lac Hi-Tech Park), energy projects (Ngoi Phat Hydropower in Lao Cai; Dakba Hydropower in Quang Ngai) and so on.
Besides, Vinaconex currently owns capital in many enterprises operating in sustainable business fields with high-profit margins such as clean water, education, hydropower, labor export, etc. Not only preserving or increasing its ownership ratio, but Vinaconex also streamlined the investment portfolio, and divested capital in underperforming businesses pursuant to the corporate development strategy in each stage.
In 2020, Vinaconex achieved a consolidated profit after tax of VND 1,690 billion, which was 2.15 times higher than in 2019. Vinaconex also recorded a consolidated profit after tax of almost VND 249 billion in the first six months of 2021. This is a favorable outcome in light of the Covid-19 pandemic's substantial effect on the construction and real estate industries.
Leaving no one behind in the wake of COVID-19
The fourth Covid-19 wave in Vietnam which began at the end of April 2021 until the present, has had a significant impact on the economy as well as the construction industry. However, in the spirit of “leaving no one behind” in the fight against the pandemic, Vinaconex always tries to take care of the well-being, assuring the income of employees and workers.
Furthermore, Vinaconex has been actively engaged in COVID-19 preventive and control activities such as supplying medical equipment, building field hospitals, donating funds to the front lines with a budget of more than VND 20 billion and many other charitable activities.
Throughout its mature and courageous 33rd year, Vinaconex promises to make numerous breakthrough developments in the future, along with the development of the national economy as long as the Corporation never puts out the flame of its own ambition to reach new heights.
According to Mr. Dao Ngoc Thanh, Chairman of the Board of Directors of Vinaconex Corporation, “In the next five years, VINACONEX strives to achieve a growth rate of 15-25% per year, the dividend rate of 12-20% per year, aiming to be the Top 3 biggest construction contractors and Top 10 biggest real estate investors in Vietnam.” |
