New movements of Coteccons
Amidst signs of a recovering business environment, Coteccons (stock code: CTD) – rated BBB by Finnratings with a stable outlook – is experiencing accelerated growth with impressive revenue and profit growth. The company’s robust balance sheet has propelled profits to grow multiply, resulting in a sharp increase in total accumulated profit over the past 6 months compared to the same period last year.
In the new fiscal year, Coteccons’ audited financial report for the first 6 months of 2024 shows that the company’s total assets are VND 21,652 billion. Out of this, cash reserves have reached VND 4,304 billion, accounting for 20% of total assets (excluding stock investments and other financial investments). Coteccons has also improved the quality of its receivables from reputable clients, resulting in a decrease of VND 44 billion, or 46%, in bad debt provisions. Furthermore, cost optimization measures have led to a significant reduction in selling, general and administrative expenses by VND 81 billion, or a 28% decrease compared to the same period. By the end of the first half of 2024, Coteccons had achieved revenue of VND 9,784 billion and profits of VND 136 billion, completing 55% and 50% of the set plan, respectively.
Besides impressive financial indicators, Coteccons is continuously recognized and honored in other prestigious rankings such as:
VNSI Ranking – Top 20 Vietnam Sustainable Index – demonstrates Coteccons’ commitment to actively contribute to the community and social environment.
Top 10 reputable contractors and Top 50 Vietnam the Best are also proof of the leading strong and reliable brand in the construction industry.
Top 10 Vietnam Best Employers in construction industry and Enterprise Leading Diversity – Equity – Integration (DEI) are also a bright spot in terms of remuneration policies and corporate culture.
The most notable achievement is Coteccons’ victory in the Outstanding Unit category at the WeChoice Awards, receiving nearly 180,000 votes. This is a great recognition of Coteccons’ efforts and achievements in becoming a leading B2C company.
Positive results like the above are a recognition and encouragement for the people of Coteccons. However, Coteccons will not rest on its laurels or compromise with the growth pitfalls that come with the title “Market Leader”. Instead, Coteccons aspires to be entrusted by the community and society with the mission of “Industry Leader” to lead change together and surmount unprecedented difficulties faced by the construction industry in recent years. This is the time when Coteccons is ready to take on this mission and enter a new chapter.
Despite the challenges, Coteccons has continued to record successful bids for a series of new projects with a total value of up to VND 15,000 billion.
Shortage of job resources, weak cash flow, increased pressure on bad debt provisions, high debt and interest costs, as well as disruptions to production and business activities were common issues faced by many construction businesses in 2023.
However, in just 8 months since the start of the new fiscal year, Coteccons – Unicons has successfully won a series of large bidding packages with a total value of more than VND 15,000 billion, providing a solid guarantee for an abundant source of jobs in the future. The risk management strategy of “Repeat Sales” continues to be effective, as Coteccons has been continuously assigned additional projects by clients whom we have previously cooperated with. To date, Coteccons has achieved LEED and LOTUS certificates for 46 projects. In 2023 alone, Coteccons – Unicons handed over 24 projects to clients and received many letters of appreciation from reputable clients.
The “Repeat Sales” projects that are worth mentioning include the Vinfast automobile assembly factory project cluster, Vinhomes Grand Park urban area, Foxconn factory, Golden Crown luxury apartment complex, BWID CN14.1 factory, HH3 Da Nang apartment complex, and Eco Central Park Vinh urban area…
Additionally, the initial results of promoting “empowerment” in the PD Empowerment governance culture are evident in the first projects of Coteccons and Unicons with new clients, such as Tien Bo Plaza, Van Lang Skylake urban area, Heineken Da Nang Brewery, New Town Apartments, Lotus Tower Apartments, TTC Plaza, Midori Park The Ten Apartments, LA Home residential areas, Viet Y Steel Factory, Logos Yen Phong Factory, Stronkin Factory and Eaton Park Apartments.
High-level personnel adjustments towards the future of integrating the Coteccons Ecosystem
The adjustment of senior personnel to align with future goals for Coteccons’ ecosystem has made significant progress. Following a period of focusing on new directions and implementing strategies from 2021, as set out by the Chairman, Mr. Nguyen Ngoc Lan – Deputy General Director of Coteccons, has completed the task excellently. Mr. Lan has built a solid foundation for Coteccons in the north and introduced innovative initiatives to diversify the company’s business activities. In the coming time, Mr. Lan will focus on personal development and his private business and has decided to temporarily step down from his role as Deputy General Director at Coteccons.
Mr. Nguyen Ngoc Lan shared: “It is time for me to think that the role of generations like me needs to be narrowed down to focus on creating a deep knowledge treasure for Coteccons people. From there, promote and create favorable conditions for the next generation, renew thinking and capabilities suitable for the new version of Coteccons.”
The company believes that, with the accumulated knowledge and experience, Mr. Lan will soon reunite and continue to contribute to Coteccons.
As Coteccons shifts toward a unified ecosystem, it is essential to balance scaling efforts with long-term sustainability. Addressing this, Coteccons has entrusted Dr. Dinh Thi Ngoc Bich with a crucial role, recognizing her robust background in sustainable development, earned through years of working with international organizations and premier domestic corporations, where she specialized in environmental and social governance and the development of green supply chains. Dr. Dinh Thi Ngoc Bich will be instrumental in cultivating a green ecosystem and enhancing Coteccons’ capacity to meet environmental and social standards at both domestic and international levels.
Sustainable development is the foundation for a long-term guarantee
Coteccons has made great strides in perfecting synchronous ESG governance institutions, with clear commitments, goals, policies, and strategies extending from the board of directors to department, board levels and various projects. Moving forward, the focus will be on extending these practices to suppliers. Hence, Coteccons has taken on the challenge of addressing the pressing issues facing the construction industry in Vietnam and around the world, which is moving towards a circular economy. The company’s vision is to create a green supply chain with optimal solutions that reduce emissions while improving the quality of life, employment conditions, and capacity building of construction workers – one of the most critical problems in the construction industry. Therefore, Coteccons has positioned ESG as a fundamental element in our ecosystem, aligning it with 5 global sustainable development goals: Circular economy/ Responsible business (SDG 12), CO2 emission reduction (SDG 13), People development (SDG 8), Sustainable cities and communities (SDG 11), Partnerships for the Goals (SDG 17).
With a desire to fulfill the mission of being an “Industry Leader”, Coteccons is continuously striving to connect with partners and supporting businesses to create a green ecosystem. Currently, the company has completed the development of greenhouse gas emission index management software, trained its workforce, and made progress in measuring emissions at a number of projects. Building on this foundation, the company is enhancing activities that can reduce carbon emissions through 3R programs launched throughout the organization.
In order for ESG to truly become the DNA of the number one construction contractor in Vietnam and towards the position of “Industry Leader”, there is still a lot of work that needs to be done. With the ambition that Coteccons’ green profile will become a passport for accessing national and international projects, the company aims to conquer the most demanding markets in terms of requirements – not only in terms of quality and finance, but also ESG factors.
In conclusion, while the general business environment is forecasted to improve in 2024, the construction industry will still face many challenges that need to be addressed. Sticking to the proposed strategy and building on a solid foundation of internal business strength will help Coteccons move towards a different ecosystem, reaping sustainable success amidst the difficulties and challenges.
