(BĐT) - Accelerating public investment in national key infrastructure projects and large-scale industrial works is the direction that businesses (DN) expect to create more employment opportunities and help businesses overcome accumulated difficulties.
Opportunity for construction contractors
According to experts, construction companies have been struggling with the downturn in the real estate market since 2019, and the COVID-19 pandemic in 2020 has made the difficulties even more challenging.
Le Viet Hai, Chairman of the Board of Directors of Hoa Binh Construction Group, said in an interview with Bau Dau newspaper that construction companies are facing significant challenges due to the impact of the pandemic. "The tourism industry has not resumed operations, and nobody is implementing tourism real estate projects, which is a major sector of construction that has come to a halt. Another significant sector is residential real estate, where many companies are struggling to collect payments from customers. Income has decreased, unemployment has increased, and many people will find it difficult to buy houses. The difficulties in the real estate market are also the difficulties we face as construction workers," shared Mr. Hai.
Despite the challenges, Mr. Hai believes that promoting public investment or promoting Vietnam's advantages in industrial public investment and attracting FDI will be the "lifesaver" for the construction industry in the near future.
"Promoting public investment is a very good opportunity and a suitable policy to revive the economy and create employment for workers, including those in the construction industry. When the economy grows, many workers leave the construction industry because it is too hard, but when unemployed, many people will quickly switch to construction because the work is straightforward," shared Mr. Hai.
Agreeing with the above opinion, Nguyen Quoc Hiep, Chairman of the Vietnam Construction Contractors Association, said, "Many domestic contractors have expressed their willingness to collaborate and have requested the association to connect them to jointly implement large contracts. In general, contractors are very interested and hopeful about this opportunity. We are still waiting for specific guidance."
Assessing the business situation of construction contractors currently, Mr. Hiep stated that even large companies such as Coteccons, Vinaconex, and Phuc Hung have experienced a decrease in revenue and profit. "In general, the entire construction industry is facing difficulties and competitive job sources. When the government promotes public investment, the job market will become less challenging," said Mr. Hiep.
What should be done to seize new opportunities?
To cope with the difficult situation, many businesses in the industry have applied different strategies. They are also more agile in understanding the situation and seizing opportunities.
Mr. Le Viet Hai stated that Hoa Binh has been thoroughly prepared and has accumulated experience in implementing infrastructure projects to take advantage of opportunities from promoting public investment. The "acquisition" of Company 479 is seen as a stepping stone for Hoa Binh to further penetrate the infrastructure sector.
In addition to investing in a company specializing in infrastructure, Hoa Binh has also recruited a director from a leading transportation construction corporation in Vietnam. The company continues to expand its market presence, participate in tenders for various projects, especially infrastructure construction projects. The total value of Hoa Binh's current tenders is over 26,000 billion VND. "The preparation we have done recently helps us seize infrastructure construction opportunities. Hoa Binh itself is also the main contractor for many major projects and the investor for various projects," shared Mr. Hai.
Despite the expectations for opportunities, Mr. Nguyen Quoc Hiep also expressed concerns about accessing public investment projects. "Overall, opportunities are increasing, but there are also many difficulties that need to be addressed. Contractors are most afraid of disbursement. Debt accumulation is the biggest fear," analyzed Mr. Hiep.
Mr. Hiep suggested that to reduce the fear of debt accumulation, the association has recommended that contractors be paid in full before being subjected to final acceptance. Furthermore, businesses must have favorable conditions in accessing information. Businesses themselves also need to be proactive in seizing opportunities.
Mr. Le Viet Hai also shared that when acquiring Company 479, the company was "shocked" by the long-standing unresolved construction debt. To mobilize the best resources for public investment projects, Mr. Hai believed that it is necessary to resolve unresolved debts and provide capital for businesses. "Project management must be tight, ensuring payment and settlement. Land clearance should be transparent, and bidding should be conducted entirely online to ensure transparency and fairness," suggested Mr. Hai.
In addition, construction companies often rely on short-term loans. The impact of the pandemic has also temporarily affected the liquidity of many businesses. To save these businesses, the State Bank needs to have support policies, change certain provisions in short-term loans, and extend debt repayment for contractors.
Other construction companies in the market are also maneuvering to seize opportunities from infrastructure resources. In 2020 and the next 5 years, out of the 5 main business sectors of FECON Joint Stock Company, infrastructure construction, industrial construction, and climate change mitigation are two of them.
In a general assessment of the market, Mr. Dao Hong Duong, Director of Analysis at PetroVietnam Securities Inc. (PSI), believes that the construction and installation industry will undergo significant differentiation in the near future. Civil construction companies may depend on the recovery of liquidity and capital flow into the real estate market, while some companies involved in foundation construction and infrastructure may have significant advantages from the government's public investment activities.
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