Revenue is expected to rise 30%, while profit is projected to grow by at least 50%, exceeding the company’s targets of VND30 trillion in revenue and VND700 billion in net profit. Yet according to Coteccons Chairman Bolat Duisenov, the most notable point is not the financial figures themselves, but the company’s strongest confidence since the pandemic in its strategy, planning and execution capabilities.
On the afternoon of June 15 in Hanoi, Coteccons Construction Joint Stock Company (HOSE: CTD) hosted Shareholders’ Day 2026, attended by Chairman Bolat Duisenov, Deputy CEOs Tran Ngoc Hai and Nguyen Chi Thien, and Nguyen Thi Thanh Huong, Human Capital Director of Coteccons.
“This Is the Shareholders’ Day That Has Made Me the Most Optimistic”
In his opening remarks, Chairman Bolat Duisenov said that in fiscal year 2026, revenue is expected to increase by around 30% year-on-year, surpassing the target and maintaining an average revenue growth rate of about 25% annually since the pandemic.
Profit is expected to rise by at least 50% from the previous year, despite this year’s fairly ambitious target of VND700 billion in after-tax profit.
Chairman Bolat emphasized that Coteccons continues to maintain positive cash flow, a clear testament to the company’s solid financial foundation.
He noted that the figures shared today are not yet final results, but representing data Coteccons is confident enough to share with shareholders at this point. He also expressed his gratitude to all Coteccons employees, the ecosystem of subcontractors and suppliers, and all customers who have trusted and accompanied the company over the past period.
According to the “four-quadrant matrix,” Coteccons is now positioned in the upper-left quadrant — definite optimism — marking a significant step forward. “We have gained this confidence because our risk management capabilities have improved, our strategic spearheads have become clearer, and Coteccons’ core competitive advantages have been more sharply defined,” Chairman Bolat said.
Growing Alongside the Country’s Development
On Coteccons’ development direction, Chairman Bolat said the company would continue to pursue three strategic pillars:
The first is urbanization.
Urbanization is an inevitable development trend for Vietnam. When an urban area takes shape, it requires not only housing but also hospitals, roads, bridges, airports and a wide range of infrastructure serving residents. By closely aligning with Vietnam’s urbanization needs, Coteccons has achieved positive business results in recent years. The company continues to invest in operational capabilities and develop specialized competencies for each segment and market niche in this field.
The second strategic spearhead is industrialization.
Vietnam is gradually emerging as a highly competitive manufacturing hub for the world. Encouragingly, the current trend is shifting from labor-intensive factories to high-tech facilities that generate greater added value.
Coteccons is continuously investing in its operating capabilities and developing specialized competencies to capture these high-tech shifts so that we can participate more deeply in high-tech projects and data centers.
At present, the industrial segment does not yet make a major contribution to business results, but management remains confident in this direction and is building the necessary capabilities to capture future opportunities.
The third strategic spearhead is Going Global.
Revenue from international markets remains modest, but Coteccons is steadfast in its goal of bringing Vietnam’s construction capabilities and human resources to the world.
Chairman Bolat said Going Global is a journey that takes time, adding that in 2027 alone, revenue from international markets is projected to increase 3 to 4 times compared to the current level.
He also noted that technology and AI trends are expected to contribute to business performance by improving labor productivity.
If We Simply Chase Mr. Market, We Will Lose Ourselves
On the company’s recent share price movements, Chairman Bolat referred to economist Benjamin Graham’s concept of “Mr. Market,” likening the market to a person whose mood changes constantly.
“If a company’s management only focuses on chasing and trying to cater to Mr. Market’s mood, we will lose ourselves,” Chairman Bolat said.
What Coteccons pursues is a clear identification of its competitive advantages in each segment, building the full capabilities required to meet market demand and creating differentiated value for customers.
Chairman Bolat emphasized: “Coteccons wants to grow, but that growth must be long-term and sustainable. Coteccons no longer pursues rapid growth at all costs. The current goal is to shift from rapid growth to quality growth.”
With revenue having surpassed the USD1 billion mark, Coteccons is taking on increasingly complex and iconic projects. This requires a stronger team, better systems and more effective governance capabilities.
Looking back on the journey so far, Chairman Bolat said he believes Coteccons’ core strategies are the right ones. The team clearly understands what it is doing and has a high level of internal alignment. Looking ahead, Coteccons knows which drivers will contribute to the company’s long-term growth.
“And I can say that, for me personally, this is the Shareholders’ Day that has made me feel the most positive and optimistic so far,” Chairman Bolat concluded his opening remarks.
We Do Not Want to Be a Lone “Steve Jobs”
Following Bolat Duisenov’s opening remarks, the event quickly moved into a direct dialogue with shareholders.
In light of the recent widespread interest in the National High School Graduation Exam’s literature essay question regarding Steve Jobs, the first shareholder raised two questions:
Question: Vietnam’s construction industry has long competed largely on price. Coteccons, meanwhile, has been pursuing concepts such asESG, Industry Leader and Zero-sum Game.
Some believe you do not merely want Coteccons to lead the market, but also want to help change the way the entire construction industry operates. Do you agree with that view? And in your opinion, what is the biggest barrier to such change?
Question: You once said Coteccons pursues big dreams without losing sight of pragmatism. While investments in technology, green transformation and governance capabilities often take time to generate results, shareholders always expect near-term profit growth. How do you balance short-term pressure with investments for the future?
Mr. Tran Ngoc Hai: Over 20 years in the construction industry, most of our work has revolved around operating projects, ensuring progress, meeting customer requirements and fulfilling the commitments we have made.
When people talk about Apple or Steve Jobs, what they remember is not simply a better phone, but how they changed an entire technology industry and were embraced by the world.
Looking at Vietnam’s construction sector, we see an industry that remains highly fragmented. Many companies operate in survival mode, competing fiercely to complete projects and meet developers’ requirements while accepting thin margins and considerable risks.
What Coteccons is trying to do is introduce new thinking, new ways of working and new values into its operations, thereby helping the construction industry develop further and be viewed more positively by society.
Coteccons currently has a record backlog. But what we care about is not only growth in scale, but also the quality of growth. We want to ensure the company develops sustainably, rather than delivering a short-term spike in growth.
As an Industry Leader, Coteccons has put ESG, Green Tech and Build Tech into practical operation. We want to help make the construction industry more transparent, greener and better aligned with environmental standards.
Mr. Bolat Duisenov: Reshaping an industry cannot happen overnight. It is a step-by-step process of change.
And we also do not want to compare ourselves with Apple. Every year, Apple can take pride in a new generation of iPhone. Coteccons has its own source of pride: contributing every year to the creation of projects that serve the country.
What we hope to do is help change perceptions of the construction industry, starting with change within ourselves. That means pursuing transparency, complying with environmental standards, improving waste management, building greener projects and creating more value for the community.
As an Industry Leader, Coteccons wants to create more value and help make the construction industry better.
But this can only be achieved through collaboration. We do not believe one individual or one company alone can make it happen. We do not want to become a lone Steve Jobs or Elon Musk. One swallow does not make a summer.
If there is one dream Coteccons has always pursued, it is to help the construction profession regain admiration from society and help construction engineers be recognized for the value they create.
Today, many young people are choosing other careers. We hope that through our efforts, more young people will continue to choose construction as a profession they can be proud to pursue.
Demonstrating Capabilities Through Complex and Iconic Projects
Question: Amid continued volatility in material prices and labor costs, what is Coteccons doing to protect its profit margins? Does the company have room to improve profitability in the period ahead?
Mr. Nguyen Chi Thien: The recent volatility in raw material prices and labor costs has been significant, directly affecting the financial performance of general contractors.
Against that backdrop, Coteccons has built a systematic operating platform, from materials procurement and supply chain management to a long-serving workforce closely aligned with the company. These factors help us better control costs and deliver reasonable value to customers.
Profit growth over the past year shows that Coteccons’ operating system is working effectively. Despite market volatility, we have maintained our ability to manage risks and safeguard business performance.
Mr. Tran Ngoc Hai: The construction market is currently seeing strong fluctuations in both materials and labor. If the question is whether Coteccons can improve its margins, the answer is yes.
The more important question is whether that improvement is sustainable or merely a short-term spike. Coteccons currently maintains a profit margin of around 4%, higher than the 3.4% level seen in previous years. With market demand exceeding supply capacity, we are not only focused on growth but are also proactively selecting projects that can deliver higher value to the business.
That value may come in the form of revenue, profit or capability-building. The Lego project, for example, saw Coteccons take on a challenge from an international client with very high standards.
More recently, the Pearl Theater and Thematic Arts and Culture Park project is an extremely complex project that has now progressed to the structural phase.
Similarly, for the Gia Binh airport air traffic control tower, Coteccons is executing the structural works in just about four to five months, while the market would normally require around a year.
We consistently seek highly challenging projects that can generate revenue and profit while building new capabilities for our teams. These capabilities will form the foundation for Coteccons to gradually expand into international markets.
Question: Coteccons has a very high repeat-sales rate. This is clearly an advantage, but is the company becoming too dependent on existing customers? And with a large backlog but relatively low margins in construction, is Coteccons entering a phase of doing more work, or actually generating better earnings?
Mr. Nguyen Chi Thien: A high repeat-sales rate is the clearest proof of the quality of Coteccons’ work. If a project fails to meet expectations, customers will not continue awarding subsequent projects.
Coteccons’ current clients are among Vietnam’s leading enterprises, with strong financial capabilities and long-term investment plans. This provides us with a solid foundation to achieve sustainable growth alongside our clients.
Year after year, Coteccons has continued to improve its profit margins. The results of fiscal year 2026 have shown positive signs, and we are committed to delivering a significant improvement in profitability in 2027.
Ms. Nguyen Thi Thanh Huong: I do not believe Coteccons’ profit margin is “meager” as the reporter suggested. What matters is that we are growing in a sustainable manner. The Company’s profit margin has improved steadily year after year and continues to maintain a positive trajectory. That is what truly matters for a business pursuing long-term growth.
Cash Flow Quality Is Improving
Question: Coteccons’ short-term receivables have now exceeded VND 11 trillion, accounting for more than 50% of total assets. Given that the construction industry’s net profit margin is typically only a few percentage points, many shareholders are concerned that while revenue is growing rapidly, the corresponding cash has not yet been collected.
Could the BOD provide any key indicators that demonstrate these receivables are highly collectible and expected to convert into cash in the near future, rather than merely representing revenue recognized on the financial statements?
Mr. Nguyen Chi Thien: Growth quality is reflected not only in profitability but also in the quality of cash flow.
In fiscal year 2025, Coteccons’ receivables stood at approximately VND 14 trillion. This year, despite an expected revenue increase of around 30%, total receivables have decreased by roughly 30% compared to the previous year.
The average collection period has also improved, declining from around 180 days to below 150 days.
These results demonstrate that Coteccons’ cash flow management system is operating in line with its strategic direction and delivering positive outcomes. Key indicators related to asset quality and working capital management efficiency are all showing improvement.
Question: Could the management provide an update on the outstanding receivables related to Ngoi Sao Company, which is affiliated with the Tan Hoang Minh ecosystem?
Mr. Nguyen Chi Thien: This is one of the major receivables for which Coteccons has made a 100% provision in accordance with its prudent accounting principles.
However, in recent months, as several related projects have resumed and the restructuring processes of the relevant parties have made new progress, we have observed a number of more positive developments compared to the past.
Throughout this period, Coteccons and the related parties have maintained regular communication and engagement. More recently, discussions between the two sides have become increasingly direct and constructive.
At this point, we cannot state with absolute certainty that the receivable will be fully recovered. Nevertheless, compared to previous periods, the prospects for recovery have become significantly clearer and more encouraging.
We will continue to closely monitor the situation and keep our shareholders informed of any material developments.
The Goal Is Not Just Revenue, but Sustainable Growth
Question: Coteccons has approached and surpassed the USD 1 billion revenue milestone. Beyond this achievement, how will the Company define its next stage of growth and expansion?
Mr. Tran Ngoc Hai: Coteccons indeed achieved revenue of approximately USD 1 billion in fiscal year 2025. This year, the Company’s revenue is expected to grow by around 30% compared to the previous year.
However, our current focus is not solely on revenue growth. More importantly, we are committed to managing the business efficiently, maintaining positive cash flow, and ensuring liquidity across the entire ecosystem, particularly for the subcontractors who partner with Coteccons.
At the same time, we are pursuing a strategy of business diversification. While Coteccons remains focused on several core sectors today, diversification will be a long-term objective as we look toward 2030.
The USD 1 billion milestone is undoubtedly an important achievement, but a company’s growth journey must be built step by step. Our priority is to achieve growth that is both high-quality and sustainable.
Mr. Bolat Duisenov: First of all, I am not entirely sure whether the shareholder is referring to the USD 1 billion milestone in terms of revenue or market capitalization.
If we are talking about revenue, Coteccons had already come very close to the USD 1 billion mark in fiscal year 2025. Exchange rate fluctuations may have been the reason the final figure fell just short of that threshold. However, based on the results of fiscal year 2026, Coteccons has now officially surpassed the USD 1 billion revenue milestone by a significant margin.
If we are referring to market capitalization, I agree with Mr. Hai’s perspective. Our focus is not on chasing a specific market capitalization figure, but rather on building a strong and sustainable foundation for the Company.
We are far more concerned with whether the Company has clear growth drivers, sustainable competitive advantages, a healthy financial position, and strong financial discipline.
Once these fundamentals are firmly established, I believe the market will gradually gain a more accurate appreciation of Coteccons’ capabilities and intrinsic value.
Stock Price Can Fluctuate; Enterprise Value Must Be Built Every Day
Question: Coteccons’ backlog has reached a record level of nearly VND 65,500 billion, and profit has grown strongly in the latest annual report. However, Coteccons’ stock has moved in the opposite direction, declining nearly 20% since early May. Could the management explain why this is happening? Is the market mispricing the Company’s value, or is it reflecting risks that have not been fully communicated by the management?
Mr. Tran Ngoc Hai: According to several reports from VinaCapital, more than 70% of companies in the market are currently trading at P/E ratios below 10x. This is typically a valuation level seen only during periods of market crisis and cautious investor sentiment.
If we compare this with Coteccons’ growth rate, current workload, and future prospects, we believe the Company is currently being undervalued.
The market is always like “Mr. Market,” as described by economist Benjamin Graham. This is something the Company cannot control. What Coteccons can control, however, is the fundamentals of its operations: operational efficiency, governance quality, financial discipline, the quality of customer relationships, and its ability to earn repeat business from clients.
Currently, Coteccons’ backlog stands at approximately VND 65,500 billion and could continue to grow in the coming years if we continue to execute well.
The market has its own perspective and right to evaluate. Coteccons’ responsibility is to create real, transparent, and sustainable value for the business. In the context of the market valuing stocks at relatively low levels, we remain focused on what we can control and what truly generates long-term value for the Company.
Question: Why has the stock price recently declined from the 8x range to the 7x range, and when does the Board expect it to return to 8x?
Mr. Tran Ngoc Hai: If we look at the relationship between business performance and stock price, we can see that in the short term, the market often reflects investor sentiment and emotions more than the full intrinsic value of a company.
In addition, stock prices are influenced by many other factors such as market liquidity, investor sentiment, and short-term macroeconomic fluctuations.
Meanwhile, Coteccons remains focused on its core fundamentals: profitability, revenue, operational efficiency, and its ability to create value for customers, the community, and shareholders.
In fiscal year 2026 alone, Coteccons exceeded its planned targets and continued to improve its profit margins. We expect to maintain this growth momentum in the coming years.
We believe that consistently delivering strong, transparent, and sustainable business results will help the market gradually recognize Coteccons’ intrinsic value over time.
Mr. Bolat Duisenov: I would like to add another perspective.
Personally, I do not intend to predict whether the stock price will go up or down in the short term. However, I would like to reiterate Benjamin Graham’s view, which divides investors into two groups.
The first group focuses on the short term. They try to predict stock price movements, buy at favorable levels, and take profits when opportunities arise.
The second group consists of investors who focus on the long-term fundamentals of a business. They look at financial health, competitive advantages, value creation capability, and the company’s sustainability over many years.
Coteccons has always chosen to focus on the second group.
We operate in an industry with very large market demand. The Company possesses resources, governance processes, and execution capabilities that have been built over many years. These are the foundations that create stability and long-term value for shareholders.
Mission of a construction company is to operate and grow
Question: CTD’s stock has repeatedly been subject to rumors in the market over time, and at certain points these rumors have even caused sharp declines in the share price before it recovered. How does the Board assess the reasons why a large company like Coteccons frequently becomes the subject of such rumors? Does the Company have any strategy to better control information and respond more effectively to rumors that may affect shareholders and the stock price?
Mr. Bolat Duisenov: To be honest, questions related to rumors are always quite difficult. Coteccons is a construction company. We are an organization of engineers whose mission is to build projects and create value for customers and shareholders, not to become specialists in managing rumors.
If every time a rumor appears the Company has to immediately respond or issue clarifications, we would very easily be distracted from more important work. The business would then be drawn into monitoring and reacting to rumors instead of focusing on operations and development.
Therefore, Coteccons chooses not to respond to all market rumors. However, this does not mean we avoid engaging with shareholders’ questions.
Programs like today’s Shareholders’ Day are exactly where the Board engages directly, openly, and transparently with shareholders. We may not respond to every rumor in the market, but we are always willing to listen to and address legitimate concerns from shareholders.
Whenever shareholders have questions or need clarification, Coteccons is always ready to engage in an open, transparent, and responsible manner.
Question: Coteccons has consistently emphasized its target of 20–30% annual growth and its long-term prospects. However, recently some major shareholders and foreign investors, including KIM, have been divesting their holdings. How does the Board view this development?
Mr. Bolat Duisenov: KIM is a fund management company from South Korea and has been accompanying Coteccons for a relatively long period of time. We truly value this shareholder. It should be understood that KIM is an investment fund. And for any investment fund, entering at one stage and exiting at a suitable point in time is completely normal.
KIM has supported Coteccons during very challenging periods. They made important contributions during the Company’s restructuring process, helping restore operational capabilities and laying the foundation for the results Coteccons is achieving today.
Rather than viewing this as a negative signal, we would like to convey a more positive message: our appreciation for KIM’s contributions over the years and our respect for their decision.
In recent discussions, we have continued to receive positive feedback from KIM. They have expressed appreciation for Coteccons’ efforts, resilience, and achievements.
From the management’s perspective, what we can commit to shareholders is not the movement of stock prices or the decisions of any specific investor. What we can commit to is operational quality, financial discipline, execution capability, and the right strategic direction for the business.
At this year’s Shareholders’ Day, I personally feel more positive and optimistic about Coteccons’ future than at any previous point in time.
Even if the Chairman steps down, Coteccons still has sufficient resources to grow for the next 50 years
Question: The Company has recently dismissed a Deputy CEO who also served as Chief Financial Officer (CFO). Could this personnel change be one of the reasons behind the recent decline in Coteccons’ share price?
Mr. Bolat Duisenov: If one believes that the change of a single leadership position can directly impact a company’s stock price, that is a perspective that can be open to debate.
In this case, Coteccons’ CFO resigned for personal reasons. This is a completely normal occurrence and happens frequently in many companies.
Personally, I do not believe that the operation of a company can depend on a single individual. Even in my own case, if one day I am no longer involved in managing Coteccons, the Company may choose a different direction. But what is important is that Coteccons still has sufficient resources, foundation, and capabilities to continue developing for the next 50 years.
Regarding the finance function in particular, this is a department that plays an increasingly important role as project scale and complexity grow. This also requires continuous enhancement of financial management capabilities.
At Coteccons, we always consider finance to be as important as engineering. No department is more important than another. Therefore, the Company always welcomes talented professionals to join in building and strengthening its financial management system.
I acknowledge and appreciate the contributions of the former CFO during his/her tenure. However, at present, Coteccons’ finance team fully possesses the capability and human resources required to perform its duties.
The business results, cash flow, and financial indicators that we have just presented are also evidence of the Company’s financial management capabilities at the current stage.
Chairman Bolat: “I do not want to become the ‘brake’ in a moving machine”
Question: Among the current leadership team, who still wakes up every morning feeling excited and happy to come to the office? And if you had to choose the most difficult question that the Chairman regularly asks himself, what would it be?
Mr. Bolat Duisenov: There are four questions I always ask myself every day:
- Do we still have enough passion to pursue big ambitions?
- Is the team still united on the same journey?
- Do we continue to earn the trust of shareholders and the Board of Directors?
- And is our risk management system strong enough to protect the long-term development of the company?
First, I always ask myself whether I still have enough passion, energy, and spirit to continue leading Coteccons. As long as the answer is yes, I will continue to contribute, continue to feel happy, and continue creating value for the company. Conversely, if one day the answer becomes no, I should no longer remain in this position. I do not want to become the “brake” in a moving machine. I want to be a companion in the company’s development.
Second, I constantly ask whether we still have a team moving in the same direction. A business can only go far when its people share a common vision and believe in the path they are taking.
Third, I ask whether we still have the support and companionship of shareholders and the Board of Directors. They are co-owners and also the ones who give the management team the opportunity to pursue long-term goals.
Finally, I always question whether Coteccons’ risk management system is strong enough. Any major decision in finance, technology, or strategy, if not executed properly, can create significant consequences for the business. We always choose to move step by step, cautiously and with control, rather than pursuing overly large decisions that may carry risks beyond our management capacity.
If the answer to all four questions is positive, I believe Coteccons is still on the right track.
The spirit of partnership with clients remains unchanged
Question: How does CTD assess the impact of labor competition, particularly from major developers such as Vingroup, on labor costs, profit margins, and the ability to secure future projects?
Mr. Nguyen Chi Thien: Vingroup has been one of Coteccons’ key strategic clients for many years. We have been executing a large number of projects for Vingroup and have also learned a great deal from their way of working—especially their spirit of thinking big, acting boldly, never giving up, and always committing to their goals.
The scale of Vingroup’s projects today is very large, and next year it is expected to be even larger. With such workload, not every contractor is capable of handling it. The fact that Vingroup has established VinCons to meet its project development needs and avoid missing market opportunities is completely normal.
Currently, Coteccons and Vingroup continue to collaborate on many large-scale projects such as stadiums and other key infrastructure works. The volume of work is substantial and the execution speed is very high. Some projects have completed reinforced concrete structural work in just over three months.
Regarding labor, competition in the market is very intense. However, Coteccons has its own strengths in terms of working environment, operational flexibility, and governance mechanisms that are not easy to replicate. We always strive to create a safe working environment so that workers feel secure at work and happy when they return home each day.
Ms. Nguyen Thi Thanh Huong: The labor market in the construction industry is currently highly competitive. However, we are confident in our ability to attract and retain talent.
The most important factor is working environment and corporate culture. Coteccons not only cares for its employees but also takes care of its on-site workforce. Programs such as “Xây Tết” and many other worker welfare initiatives have received very positive recognition from authorities, clients, and partners.
In November, Coteccons was certified as a Great Place To Work. According to the survey, 87% of employees said they feel happy working in a safe environment where they are cared for and supported throughout all 365 days of the year.
Question: Could the Chairman share the Company’s 3–5 year target? What is the expected average annual growth rate in revenue and profit? And what is Coteccons’ competitive advantage compared to other contractors such as VinCons?
Mr. Bolat Duisenov: Achieving overly rapid growth is not a strategic priority for Coteccons in the coming period. However, this does not mean we lack ambition. On the contrary, I am very confident that Coteccons will still achieve significant breakthroughs in business efficiency and profitability in the years ahead.
Regarding VinCons, we do not view it as a direct competitor, and I also do not believe that comparing the two companies is entirely appropriate.
We see VinCons more as part of the client’s ecosystem rather than a competitor to be directly confronted.
The key difference is that we are operating and developing across multiple market segments. In each segment, Coteccons has its own competitive advantages to create value for clients. These may include brand reputation, engineering talent, project management capability, construction speed, or the ability to execute highly complex projects.
Depending on each customer group and market segment, we emphasize different strengths to meet their specific needs.
However, there is one constant in Coteccons’ approach across all projects and segments: the spirit of partnership and shared commitment with clients.
When a project is awarded to Coteccons, what matters is not only execution capability, but also alignment in values, working approach, and shared objectives between both parties. Therefore, Coteccons always aims to build sustainable, long-term partnerships with clients, rather than focusing solely on winning tenders.
Willingness to divest from Ricons
Question: Regarding the dispute between Coteccons and Ricons, it is understood that Coteccons has made a 100% provision for the related receivable. Could the Board provide an update on the latest status of this case? At the same time, what is Coteccons’ current view on divesting its stake in Ricons?
Mr. Bolat Duisenov: Previously, we did not have sufficient evidence and documentation to accurately determine the nature and value of the related transactions. When such information was not clearly established, we could not unilaterally recognize this as an account payable.
Therefore, the previous accounting recognition does not mean that we acknowledged it as a definitive liability that must be paid. Coteccons’ consistent view is transparency, and we only recognize transactions when there is a complete and sufficient basis.
As of now, both parties have reached an agreement. We have clearly determined the exact value of the payable and will fulfill the payment obligation according to the mutually agreed figure.
Importantly, there are no penalties associated with this matter. This is not a provisioned loss but a clearly defined payable that will be settled based on the agreement between both parties.
Regarding divestment, Coteccons’ position has never changed. Coteccons is one of the major shareholders of Ricons. However, we do not see long-term value from this investment for Coteccons. Currently, Coteccons has no representation on Ricons’ Board of Directors or management team. We are not involved in strategic planning, do not have visibility into its long-term direction, and do not see full alignment in interests between the two parties.
Recently, Ricons has undergone changes in its leadership team. We hope to have the opportunity to engage with the new management to discuss future direction and potential cooperation. Therefore, Coteccons’ position is to remain ready to divest from Ricons at an appropriate time.
Unicons is gradually returning to the race
Question: At previous General Shareholders’ Meetings, Coteccons mentioned the restructuring process of Unicons. Could the Board provide an update on the current progress and assess Unicons’ performance after restructuring?
Mr. Nguyen Chi Thien: After the restructuring process, Unicons is recording very positive signals in its business operations.
Revenue indicators have shown significant growth. Profit and operating cash flow have also improved markedly compared to before.
More importantly, customer trust in Unicons is gradually being restored. An increasing number of clients continue to place their trust and award projects to Unicons.
However, we are not returning to the old way of doing business, which was pursuing work at any cost. After restructuring, Unicons now operates more cautiously, selects projects more carefully, and focuses more on the quality of growth.
As a result, Unicons’ operational metrics are improving in a more sustainable direction.
In addition, the organizational structure has been streamlined, and labor productivity has improved compared to before.
At present, Unicons is able to stand on its own feet, proactively seek projects, operate independently, and is gradually returning to the race with a stronger foundation.
“Coteccons currently has enough opportunities, enough work, and enough projects to choose the most transparent and suitable ones”
Question: In the context of several public investment projects recently facing legal issues involving project owners or contractors, how does Coteccons view this risk? What mechanisms does the Company have to prevent legal risks when participating in large-scale infrastructure and public investment projects?
Mr. Bolat Duisenov: In reality, no one can fully control what will happen in the future. However, what we can control is how we operate the business, how we fulfill our commitments, and how we comply with internal company regulations.
At Coteccons, we build a culture of transparency and compliance as a consistent principle throughout all of the Company’s operations. For key projects and large-scale construction works, legal compliance is not an option but a mandatory discipline that must be established and maintained.
Personally, I believe Coteccons currently has enough opportunities, enough work, and enough projects to select those that are the most transparent and best aligned with the values the Company pursues.
The management team consistently emphasizes the spirit of strict legal compliance and adherence to current regulations. We do not want the efforts that the organization has built over many years to be compromised by undisciplined decisions or inappropriate actions.
To achieve sustainable long-term development, a business must first build a solid governance foundation and a strong culture of integrity that is sufficient to protect itself against all risks.
“Sustainability is not a cost”
Question: In the context of pressure on project timelines and costs, full compliance with environmental regulations often significantly increases project expenses. How does the Company balance cost competitiveness with its commitment to sustainable development, especially when the market still has contractors who “circumvent regulations” on waste treatment?
Mr. Nguyen Chi Thien: For me, investments in environmental protection, compliance, or sustainability should not be seen as costs, but rather as long-term competitive capabilities of the business.
In a context where society increasingly demands higher standards of transparency, governance, and compliance, a large general contractor must certainly commit to meeting these standards.
There may be ways to reduce short-term costs by bypassing regulations or ignoring certain requirements. However, we believe that is not a sustainable path for development.
Coteccons does not choose to move faster by compromising principles. We see legal compliance and transparent operations as the foundation for long-term growth.
Ms. Nguyen Thi Thanh Huong: Coteccons pursues sustainable and transparent development across all operations and integrates ESG practices into its entire operating system.
Therefore, we do not choose shorter paths by compromising governance principles.
As Mr. Bolat mentioned, Coteccons is transitioning from rapid growth to quality growth. And in that journey, transparency is always one of the top priorities.
Investors, contractors, partners: a harmonious symphony orchestra
Question: For large-scale infrastructure projects assigned by the Government to private conglomerates, what does Coteccons see as the biggest risk factors for contractors? And what enables Coteccons to continue being selected for increasingly complex projects like these?
Mr. Bolat Duisenov: For large-scale projects like those today, the common factor is that the investors are all leading corporations such as Vingroup, Sun Group, and Masterise. These are highly complex projects.
In reality, no single contractor can independently complete such projects in their entirety. It requires very close coordination between the investor, the general contractor, subcontractors, and the entire ecosystem involved in the project.
To succeed, the requirements are not only about construction quality or schedule adherence, but also about governance capability, financial discipline, resource coordination capability, and large-scale logistics management.
Coteccons’ engineering team and personnel are also continuously adapting and upgrading their capabilities to meet these increasingly high requirements.
From my perspective, the most important factor that allows Coteccons to continue being selected by major investors is that we always approach projects with a spirit of partnership with the client.
With long-term partners such as Vingroup, Sun Group, and Masterise, we always consider ourselves part of the same team.
Coteccons, the investors, and subcontractors all share a common goal: to complete projects on schedule, ensure safety, and meet the highest quality standards.
Coteccons’ engineers are truly proud to participate in projects of such scale and complexity.
I believe that in the coming time, shareholders will see more clearly the results that these projects bring.
Because in reality, Coteccons together with investors and major partners are working in harmony like a symphony orchestra, jointly creating long-lasting value for the country’s infrastructure.
People join a company for salary, but stay for culture
Question: Given the current situation of talent drain and engineers losing motivation to stay committed to the profession, how can this issue be addressed?
Ms. Nguyen Thi Thanh Huong: In any organization, the key question is not whether there are resignations or not, but whether the company is attractive enough to recruit, develop, and retain the right people in the long term.
Coteccons is always oriented toward sustainable development. We strive to build a competitive working environment and ensure compensation packages that are aligned with the capabilities and contributions of our engineering team.
However, compensation is not everything. We want employees to feel cared for throughout all 365 days of the year, while also having opportunities to learn, grow professionally, and develop together with the company.
Sustainable development is not measured over one month or one year, but over many continuous years.
Therefore, I do not see employee turnover as a problem unique to Coteccons. It is a normal part of the labor market.
On the contrary, every new employee also brings new perspectives, new capabilities, and new opportunities for the organization to grow further.
What we focus on is building an environment strong enough for the right people to want to stay with Coteccons long-term.
Question: What is the current retention rate of senior personnel and site managers? Is the gap between Coteccons and other major contractors narrowing or widening?
Mr. Tran Ngoc Hai: In the construction industry, talented people always have many choices. Therefore, retention is never simply a matter of a single ratio or metric.
At Coteccons, personnel from site managers and above are considered the core workforce of the company. Once they reach these positions, most of them have a very high level of commitment and engagement. Many have been with the company for more than five years, fully understanding the corporate culture, operating system, and future development direction.
We always create opportunities for employees to grow professionally. With a large project portfolio and an expanding backlog, our management team has plenty of room to demonstrate their capabilities and develop themselves.
Regarding the gap with other contractors, we do not focus too much on who is ahead or who is narrowing the gap. Each company has its own strategy and development direction.
What Coteccons cares about is creating conditions for every engineer to improve their capabilities. A civil engineer’s professional value is accumulated through each project, and we want to be the place that enables that career development journey.
