Coteccons is currently the leading construction company in the industry, with stable and sustainable revenue growth. Coteccons’ total assets are VND 20,042 billion, and its equity is VND 8,236 billion, and cash of almost 4,000 billion. As a result, Investors and Shareholders regard Coteccons as a construction company with a solid financial foundation.
There have recently been a number of exceedingly adverse occurrences for the building industry, particularly in the fields of urban housing and tourism. Since 2017, very few urban housing projects have been granted construction licenses. The industry’s human resources have increased while the source of employment has decreased dramatically. Because underemployment creates an imbalance between supply and demand, the construction industry is more competitive than ever. And some contractors have used this opportunity to increase the unneeded confrontations that are deteriorating the construction environment.
Regarding the economic contract dispute with Ricons Group Investment Construction Joint Stock COMPANY, Coteccons verified that there were transactions between the two Companies, including receivables and payables (referred to as liabilities).
Explaining the debt arising from the period before 2019, Coteccons and Ricons were controlled and identified as contributing components to an ecosystem of seven member organizations that were interrelated prior, including: Coteccons, Unicons, Ricons, Newtecons, BM Windows, Sol E&C, and Boho.
During the operation of an ecosystem, a number of Ricons projects as general contractors arise related party transactions with Coteccons as a subcontractor at the project, such as the Regina Hung Yen project, the Design East Asia project, and some equipment leasing transactions between the two companies. Debts arising at present have not been fully settled due to problems in determining the value of debts and documents that meet legal requirements.
Similarly, a number of Coteccons projects as general contractors have incurred debts to Ricons as subcontractors that have not been settled such as: Newtaco project, Regina Phase 4, 5 6, factory project Vinfast and Simco project.
The aforementioned are the causes leading to disputes over economic contracts between the two companies. Coteccons has repeatedly requested face-to-face meetings and documents, but Ricons has not been able to provide legal documents according to the requested debt value.
Coteccons is a contractor that is currently promoting anti-corruption, anti-bribery, and transparency to the public, investors, and shareholders, as well as supporting ESG standards in its operations. daily routines… Coteccons maintains that doing business must prioritize the principle of “Creating a positive impact on society” with “Humanism” at the top, on the basis of mutual advantages and the rule of law. When related parties engage in a debt-generating transaction, they must pay and abide by the terms of the signed contracts and the law. Coteccons is also trusted by the significant investors to operate as the General Contractor on the Mega Project because of the application of these principles.
Coteccons is now bidding on highly significant, influential, and value-creating projects for the country, despite a legal disagreement over economic contracts that will be settled soon. However, Ricons refused to cooperate and filed a lawsuit with the Court declaring bankruptcy, which is not a coincidentally timed action.
We have taken a radically different course, abandoning competitive tactics such as “rumours” and pricing wars. That choice causes us to reconsider the construction business and severe transformation.
As a result, Coteccons suggests that the Ricons contractor collaborate, submit documents that fulfill legal criteria immediately, and assess the worth of debts originating between the two parties so that Coteccons’ bidding process is not hampered.
Coteccons reiterated its willingness to collaborate in resolving economic contract problems between Coteccons Construction Joint Stock Company and Ricons Group Investment Construction Joint Stock Company. This is a way for Coteccons to demonstrate transparency and readiness in advancing its commitments to anti-corruption, anti-disclosure, and defending Shareholders’ and Investors’ interests.
