Construction businesses seem to be gradually returning to the momentum of the construction market as real estate projects begin to restart after an extremely challenging period. Diversifying their business areas based on leveraging their core business is a step that many companies in the industry are taking.
Construction businesses seem to be gradually returning to the rhythm of the construction market as real estate projects begin to restart after an extremely difficult period. Diversifying business segments on the basis of promoting their core business is a step taken by many businesses in the industry.
The difficult period gradually passed
According to many industry experts, most construction businesses have felt difficulties in the past 6 months due to the impact of the Covid-19 pandemic and the sluggish real estate market. Projects had to be temporarily stopped or operated at a leisurely pace, many contractors had to lay off workers, debts became more difficult to collect, stock prices went down,...
According to Mr. Nguyen Van Thanh - General Director of FECON Joint Stock Company, the current difficulties come from the COVID-19 pandemic, which has clearly affected the economy in general as well as the construction market in particular. especially construction of tourism and resort real estate.
However, entering June, the most difficult period has passed, construction enterprises are regaining their position as leading key enterprises contributing to the socio-economic development of the country. .
The business results of current leading construction enterprises are also gradually improving. For example, Coteccons (CTD) reported profit after tax in the first quarter of 2020 reaching 123 billion VND, although down compared to the same period, it is also a significant effort in a difficult context. Like many other construction enterprises, Hoa Binh Construction Group Joint Stock Company (HBC) has also encountered many difficulties recently due to the impact of Covid-19, slow construction progress of projects, and cash flow. ...has impacted the business activities of this enterprise when the first quarter of 2020 only recorded a profit of 5 billion VND...
With good control of the epidemic, Vietnam's economy is on the road to recovery, and the construction industry is starting to accelerate with the return of projects.
According to market research companies such as Savills, CBRE and JLL, in their reports, they are also pointing out opportunities for compensation from capital flows moving to Vietnam, especially in the post-pandemic period when value chains are resumed and demand increased.
This will lead to a sharp increase in industrial real estate demand in Vietnam following the increase in FDI investment capital with the advantage that the transportation system is increasingly perfect and Vietnam's land fund for industry is still available. cornucopia.
This is also an opportunity for many construction industry businesses to find new opportunities.
Recalculate direction
According to the Chairman of Coteccons, in order to maintain its position as a leading enterprise in the industry, what needs to be done now, CTD will focus strongly on civil construction, avoiding losing customers to units such as HBC, Delta, etc. also sister company Ricons.
And Mr. Le Viet Hai, Chairman of HBC, emphasized reform and innovation on a large scale. Accordingly, HBC will focus on improving business operations, streamlining human resources, and improving construction progress in the post-Covid-19 period.
Not out of the trend of moving and innovating according to the market pulse, FECON Joint Stock Company (FCN) also has its own plans to implement the new strategy 2020 - 2025 with the goal of becoming a construction contractor. leading industry & infrastructure in Vietnam and a reputable project investor according to international standards based on excellent capacity in foundations, foundations and underground works. One of FCN's steps is to focus strongly on the field of industrial construction and investment in renewable energy projects with many wind power and solar power projects in the Central region, Central Highlands and the South.
Up to this point, besides participating in major projects such as Long Son Petrochemical, Nghi Son 2 Thermal Power, Van Phong 1 Thermal Power, Hoa Phat Dung Quat Steel Production Complex, FECON has completed 4 construction projects. solar power project, won 4 wind power projects and is preparing to invest in a 120 MW wind power project in Soc Trang province, at the same time the company continues to research and invest in 2 solar power projects solar power and 2 wind power projects with a total capacity of 5 projects after completion of about 700MW.
The company is also taking important steps with foreign investors and general contractors to prepare to invest and construct coal power and LNG power projects in Vietnam, which will start construction at the end of the year. 2020 and the first half of 2021.
Source: IEA, PSI compiled
According to the assessment of the Analysis Center of Petroleum Securities Joint Stock Company (PSI), Vietnam's electricity consumption demand in the coming years will continuously increase sharply to meet daily consumption and production. According to the adjusted Power Plan VII approved by the Government, the installed capacity of power sources will need to increase by about 83,000 MW of new power sources built and put into operation from now to 2030.
In the world today, the trend of shifting to clean energy sources to protect the environment and meet sustainable economic development is increasing and Vietnam is no exception to the trend. In addition, Vietnam has a geographical location, a long coastline, and a typical tropical monsoon climate, so it can develop a variety of clean energy sources from liquefied gas, wind power, solar power...
Source: CafeF
