Category: Project News

As the market shows signs of revitalization, a general contractor with a skilled workforce and strong financial health is poised for significant growth.

The vibrant sounds of construction sites for multi-billion-dollar projects are signaling the return of dynamic activity to Vietnam’s construction sector. After a prolonged period of stagnation, the industry has seen a strong comeback with a series of large projects being continuously launched. Leading contractors such as Coteccons, Central, Newtecons, and many others are tirelessly working to reposition themselves and build a foundation for sustainable development.

However, this recovery is not solely a matter of winning more projects; it is also a challenge of internal capabilities, particularly the financial strength of these enterprises. A major question arises: do the general contractors have the necessary capacity to execute and complete these multi-billion-dollar projects amidst fierce competition, stringent requirements on timelines, and quality?

Reports from the Mirae Asset Vietnam Securities (MASVN) analysis team have highlighted a significant risk today: the shortage of capable contractors, leading to numerous issues such as project delays, decreased construction quality, and increased costs. In this context, the ability to maintain stable cash flow, control risks, and optimize resources becomes crucial to success.

Having consistently secured a series of projects worth billions of VND, Central Construction Joint Stock Company, with its sustainable development strategy, has affirmed its position thanks to its strong workforce and outstanding management capabilities. Currently, the company boasts nearly 900 experienced engineers and over 10,000 skilled workers from various regions, enabling optimal labor mobility and ensuring project timelines are met without obstruction, regardless of the project’s location.

Financially, Central continues to prove its stability through tight management and proactive cash flow control, avoiding the pitfalls of stagnant projects amid the recent turbulence in the bond market. Rather than chasing revenue, the company maintains a balanced approach between growth and risk control, ensuring that each project delivers long-term value.

During the 2022-2024 period, as the construction market faced numerous fluctuations, Central demonstrated exceptional stability and superior management capacity. In 2022, the company achieved a post-tax profit of VND 233 billion, a positive result amid challenging circumstances. In 2023, despite the ongoing struggles in the real estate market, Central still maintained a profit of over VND 200 billion. By 2024, the company continued to hold steady with a post-tax profit exceeding VND 200 billion, reaffirming its sustainable development strategy and effective adaptability.

Moreover, Central has maintained a leading position in terms of Return on Equity (ROE). As of the end of September 2024, this ratio significantly outpaced its industry competitors, reflecting the company’s exceptional business efficiency.

Risks from the Short-Term Revenue Race

While Central focuses on sustainable development, many other contractors are engaging in a revenue race at all costs. This includes strategies like bidding at low prices or even advancing funds to investors to secure contracts. While these tactics may boost short-term revenue, they come with significant risks, including cash flow imbalances—particularly when projects face legal issues or delays as seen in recent times. Advancing funds to investors not only puts pressure on budgets but also reduces a company’s financial flexibility.

Additionally, undercutting bid prices in order to win contracts may lead to cost-cutting on construction expenses, which severely impacts the quality of the final product. Some projects, once completed, have resulted in a range of negative consequences—from increased operational and maintenance costs to a tarnished reputation for the contractor.

A Safe Choice for Investors

Unlike high-risk strategies, Central maintains a healthy capital structure and a sustainable financial strategy. The company’s debt-to-equity ratio has consistently remained among the lowest in the industry, standing at 12.3%, 5.7%, and 11.8% in 2022, 2023, and 2024, respectively. This not only alleviates interest payment pressures but also enables the company to reinvest its internal resources, positioning itself to expand into new sectors and markets. Central’s current ratio also reflects its stable financial capacity, achieving 1.15x, 1.17x, and 1.43x over the past three years. This ensures the company can settle debts promptly, reinforcing trust among partners and asserting its reputation in the industry.

In a volatile market, Central’s cautious approach and sustainable development strategy have made it a reliable partner for investors. Its strong financial position is not only the key to securing multi-billion-dollar projects but also serves as a solid foundation for long-term stability and growth.

In conclusion, as the construction industry witnesses a strong rebound thanks to public investment projects and the recovery of the real estate market, companies with robust financial health—such as Central—are becoming increasingly valuable partners, providing reassurance to investors. As the economy enters a new growth cycle, the demand for timely project completion, exceptional quality, and long-term impact will be more critical than ever. Therefore, choosing reputable and high-quality contractors is not only essential for ensuring the success of a project but also for cementing the long-term value and standing of each building or infrastructure development.

Link:

• CafeF: https://cafef.vn/suc-manh-tai-chinh-cua-central-cho-cac-du-an-ngan-ty-188250124181817242.chn

On the morning of Dec. 24, 2024, Central Construction JSC, in collaboration with the Project Management Unit (PMU) of the “Development of Vietnam’s National Universities – Vietnam National University Hanoi Subproject” hosted the ground-breaking ceremony for the University of Engineering and Technology at Thach Hoa Commune, Thach That District, Hanoi City. The project is being built on the Vietnam National University Hanoi campus, covering 887.9 hectares and is funded through a World Bank’s credit fund. The total investment amounts to USD 123.18 million, equivalent to VND 2,894 trillion.

The event was attended by distinguished delegates, including:

From Vietnam National University-Hanoi (VNU-HN):

• Mr. Le Quan, Secretary of the Party Committee, President
• Professor, Academician Dao Trong Thi, Former President
• Mr. Nguyen Hieu, Permanent Vice President
• Mr. Nguyen Hoang Hai, Vice President
• Mr. Pham Bao Son, Vice President
• Dr. Vu Minh Giang, Former Vice President

From the University of Engineering and Technology (UET):

• Mr. Chu Duc Trinh, Rector
• Mrs. Nguyen Thi Bich Ha, The spouse of the late Professor, Academician Nguyen Van Hieu
• Mrs. Nguyen Thu Huong, Vice Rector

From the PMU “Development of Vietnam’s National Universities – VNU, Hanoi Subproject”:

• Mr. Nguyen Thanh Tuan, Director of the Board

From Central Construction Joint Stock Company:

• Mr. Tran Quang Tuan, CEO
• Mr. Tran Dang Khoa, Executive Director
• Mr. Nguyen Thanh Luan, Project Director

In collaboration with APAVE Vietnam & Southeast Asia consultancy company, the design consultants’ team, faculty members from VNU-Hanoi, esteemed partners, clients, and media agencies supporting communications of this important project.

The UET project consists of several key facilities such as: administrative buildings, lecture halls, training and practice areas, a multifunctional laboratories building, and essential technical infrastructure such as road, power stations, water supply, and wastewater treatment systems. CENTRAL serves as the General contractor for Structural, Finishing, MEP systems and Infrastructure

The ground-breaking ceremony for the UET marks a significant step in VNU-Hanoi’s commitment to modernizing and synchronizing its facilities, contributing to the national innovation ecosystem, and, most importantly, advancing the development of human resources for semiconductor integrated circuit technology research in Vietnam.

At the groundbreaking ceremony, Mr. Nguyen Hieu, Permanent Vice President of VNU Hanoi, shared: “The ground-breaking of the UET marks a milestone in the school’s development, with a larger scope and a commitment to becoming the leading center in the country for training and research in technology, especially in developing the workforce for research in semiconductor integrated circuit technology in Vietnam.”

On behalf of the UET’s Board of Administrators, Mr. Chu Duc Trinh, the Rector of the university, spoke: “This groundbreaking ceremony is a landmark event celebrating the 25th anniversary of the University’s establishment. It signifies not only the dream of VNU Hanoi and the UET but also the aspiration of Vietnam’s higher education system. Moving forward, the University is ready to accompany VNU-Hanoi in spearheading efforts to train high-quality, advanced technical professionals and cultivate exceptional talent for the nation, the region, and the world”

In response to the trust from the Owners, Mr. Tran Quang Tuan, CEO of CENTRAL, stated: “Central is honored to collaborate with VNU-Hanoi in this large-scale educational project. The trust placed in us by the Owners is a powerful motivation for Central to continuously strive for excellence, complete the project to the highest standards, and contribute to enhancing the nation’s human resource development. We firmly believe that this partnership will establish a strong foundation and open-up many new opportunities for the future, enabling our company to continue contributing to the development of Vietnam’s education sector.”

Once completed, the project will meet the educational needs of 4,400 students, aligning with the strategic vision of the UET. It aims to position the university as a leading research university in science and applied technology in Vietnam, meeting the core standards of advanced research universities across Asia. In particular, several programs and disciplines will meet international benchmarks, making significant contributions to the nation’s industrialization and modernization efforts.

Some images from the ceremony:

The PMB for Vietnam National University Development of VNU-Hanoi has just announced the results of the contractor selection for the Construction Package of the University of Technology (Phase 1) (WB/VNUHN/CW/03). Accordingly, Central Construction Joint Stock Company is the winning contractor for this project.

The project is being constructed on an area of 887.9 hectares and utilizes credit funding from the World Bank. The total investment for Vietnam National University – Hanoi (VNU-HN) amounts to 123.18 million USD, equivalent to 2,894 trillion VND.

On the morning of December 17, 2024, at the Headquarters of the World Bank’s PMB, located in Headquarters Building – Center Zone of Vietnam National University, Hanoi, both Parties conducted a contract signing ceremony. Currently, the construction site has been prepared and is ready to commence construction at the end of December 2024.

PROJECT INFORMATION:

Project Name:	University of Engineering and Technology (UET) – Vietnam National University – Hanoi (VNU)
Address:	Thach Hoa Commune, Thach That District, Hanoi City
Investor:	PMB for Vietnam National University Development of VNU-Hanoi
Design Consultant:	Design Consultant And Investment Of Constructions One Member Limited Liability Company (DCCD)
Scope of Work:	Structure, Finishing, MEP, and Infrastructure Works
Land Area:	41,000m2

Vietnam National University – Hanoi, once officially operational, will become a symbol of the most modern and smart green university urban area in Southeast Asia. The university has invested in many prominent facilities such as lecture halls, libraries, indoor and outdoor sports areas, cafeterias, dormitories, and green landscape areas.

In the field of education, Central has affirmed its position with a series of international standard school projects across the country. In the northern region, notable projects include: Singapore International School (Hai Phong), Dewey International School Ocean Park (Gia Lam, Hanoi), Chadwick International School, and Edison International School (Ecopark, Hung Yen), along with Phenikaa University (Ha Dong).

In the southern region, Central has successfully handed over projects such as Emasi Nam Long School (District 7) and Blue Sky Mega Residence School (District 9). Notably, the Emasi Plus International School – Water Point Campus in the Waterpoint Urban Area, Nam Long, Long An, has become a pioneering symbol in applying energy-saving green technology and using materials according to green building standards – LEED.

Central is proud to accompany this large-scale educational project. With a strong technical expertise foundation and a diverse accumulation of experience, Central has asserted its leading position through the application of modern technology and a professional project management process. We are committed to implementing the project with the highest determination, ensuring quality construction and timely delivery as committed.

Central not only aims to construct buildings but also aspires to make significant contributions to the development of education in Vietnam. Participating in international standard educational projects is part of our long-term strategy, with the goal of enhancing education quality and providing a modern and comfortable learning environment for future generations. Central continuously strives to contribute to building a better education for everyone. We are proud to contribute to the nation’s educational development.

On the morning of November 30, 2024, at Lot D1, Tan Thuan Export Processing Zone, District 7, Ho Chi Minh City, Central Construction Joint Stock Company and the investor, Tan Thuan Co., Ltd. (TTC), solemnly organized the topping-out ceremony for the TTC Business Incubator Project – Office Building C. This event marks an important milestone as the project has been topped out 1.5 months ahead of schedule, bringing great pride to all parties involved.

Attendees at the ceremony included:

From the Investor:

• Mr. Nguyen Tan Phong – Deputy General Director
• Mr. Yuan Dong – Director of the Service Department
• Mr. Hoang Bao Quoc – Deputy Director of the Service Department
• Mr. Hoang Duc Thinh – Construction Manager

From SCQC Saigon Construction Quality Control Joint Stock Company:

• Mr. Tran Hai Minh – Chief Supervisor

From Sino-Pacific Construction Consultancy Co.,Ltd:

• Ms. Thai Anh Ngoc – Chief Designer

From Central:

• Mr. Nguyen Thien Thuat – Project Director
• Mr. Nguyen Duc Hau – MEP Project Director
• Mr. Do Tran Duy Vinh – Project Manager
• Mr. Do Van Phuc – MEP Project Manager

For this project, Central Construction JSC is serving as the General Contractor for the complete execution of the following works: structure, finishing, interiors, façade, MEP systems, infrastructure, and landscaping. Commencing in February 2024, the project has overcome numerous challenges and achieved significant milestones. Notably, the excavation work for the basement was completed one month ahead of schedule, and the final slab pour for the roof was carried out 1.5 months earlier than planned.

“The TTC Business Incubator – Office Building C” will provide office space for businesses operating in software, design, commerce, and startups. This project continues the success of the investor following the operational launch of buildings A and B.

In response to the trust placed in them by the investor and to express gratitude to the partners involved, Mr. Do Tran Duy Vinh – Project Manager on behalf of Central stated: “During the construction process, conflicts and challenges are inevitable. However, with the professionalism of a reputable general contractor and the seamless coordination among all parties, every issue has been resolved. The success of a project is a collective effort, uniting the strength of all of us here.”

Following the topping out ceremony, the project team will continue to accelerate the finishing works: complete the mock-up floor as planned; finalize the interiors and construct the facade; and simultaneously implement the surrounding infrastructure. We are committed to completing the project on time, ensuring the highest quality, and handing it over to the investor for operations as per the established plan. This not only demonstrates Central’s capabilities and reputation but also reflects the trust and expectations that the investor has placed in us.

Some images from the ceremony:

On November 22, 2024, Central received the notification of winning the bid for the finishing and interior design package for a series of 17 Techcombank branch offices. Earlier approvals for component packages such as Design, Pile, Basement Structure, Superstructure, Finishing, and MEP have also been granted. Officially, Central, along with the investor Techcombank, will focus all efforts on implementing the comprehensive Design and Build package for the 17 Techcombank branch offices.

The branch offices of Techcombank (Vietnam Technological and Commercial Joint Stock Bank) are located on major thoroughfares in the key provincial and city centers, including:

Thai Nguyen	Nam Dinh	Binh Duong
Bac Giang	Nghe An	Tay Ninh
Vinh Phuc	Binh Dinh	Binh Phuoc
Lang Son	Gia Lai	Vung Tau
Hai Phong	Binh Thuan	An Giang
Hai Duong		Ca Mau

Central’s success in winning the bid for the comprehensive Design and Build of this project suite signifies a strategic and sustainable partnership with Techcombank in establishing modern, high-standard, and environmentally friendly branch offices, providing a seamless experience for customers during transactions. As a pioneer and leader in providing comprehensive Design and Build services, Central not only assists investors in optimizing costs and controlling quality but also shortens construction time, allowing projects to be operational sooner.

Collaboration with an industry giant like Techcombank not only reinforces but also strengthens the solid trust that Central, ranked among the top 3 most reputable construction contractors in Vietnam, has built. Techcombank is the first bank in Vietnam to achieve the prestigious ‘hat-trick’ award for “Best Bank in Vietnam” from three leading global organizations: Euromoney, FinanceAsia, and Global Finance. It is also the leading private joint-stock commercial bank in Vietnam, with pre-tax profits exceeding 3 billion USD over the last three years.

Despite the construction market facing numerous challenges in recent years, Central recorded revenues of 9.014 trillion VND in 2022 and 8.142 trillion VND in 2023, placing it among the top 3 in the industry. The corresponding net profit after tax stood at 230 billion VND and 200 billion VND, leading the industry in profit margins. Central is honored to receive the trust of Techcombank, which has chosen it for the construction of branch offices extending across all three regions of the country.

As a leading reputable contractor in the segment of modern office tower projects, Central has been creating numerous high-class offices nationwide, including the Daikin (Japan) headquarters, C.P. Group (Thailand) office, UOA (Malaysia) office, HallMark (OCB bank) office, Mett (Shinhan Bank, South Korea) office, Etown 5 & Etown 6 with record basement depths in Vietnam, the headquarters of The Gioi Di Dong, and the Cyber Security Department (A05, Ministry of Public Security) office. For each project, Central’s management consistently implements the most effective construction measures tailored to the specific location and prioritizes safety throughout the construction process, delivering projects that are not only high-quality but also reliable upon handover.

Central takes pride in providing sustainable and high-class value through its projects, affirming a solid position within the construction industry in Vietnam.

With dedication, responsibility, and professionalism in every action, Central commits to mobilizing the best resources, ensuring absolute safety during the construction process, and achieving the highest quality standards to deliver projects on schedule as promised to the investors.

On the morning of October 30, 2024, Central, in collaboration with the Investor Sun Group, organized the closing ceremony for the basement of the Sun Symphony Residence Project in Da Nang. This event marks an important milestone, recognizing the efforts and achievements of Central’s PMB, the project management team, and partners in implementing a high-class project along the banks of the Han River.

Distinguished guests in attendance included:

Representatives from the Investor, Sun Group:

• Mrs. Bui Thi Thanh Huong – Vice Chairwoman of the Board of Directors and General Director
• Mr. Pham Duc Hung – Board Member and Chairman of the Member Council of SUNPMC
• Mr. Nguyen Van Binh – Chairman of Sun Group in the Central Region
• Mr. Nguyen Tuan Anh – Director of the Da Nang Board of the PMU

Representatives from the General Contractor, Central:

• Mr. Tran Dang Khoa – Executive Director
• Mr. Võ Quang Dat – Project Director
• Mr. Tran Dinh Vy – MEP Project Director

Along with clients, partners, and staff from both parties.

The leadership of the involved parties congratulated the milestone of closing the basement. A view of the closing ceremony for the Sun Symphony Residence Project basement.

The Sun Symphony Residence Project belongs to the premium segment of Sun Group in Da Nang. Positioned opposite the city’s administrative center, it offers a favorable vantage point to enjoy breathtaking firework displays from the International Fireworks Festival. Central has undertaken the construction of the entire underground section of Towers B1.1 & B1.2, as well as the structural and finishing works for Tower B1.1. Notably, the project’s three basements were completed at a rapid pace within 150 days and nights. The tunnel closure was achieved ahead of schedule, ensuring safety and quality commitments to the Investor.

During the ceremony, Mr. Nguyen Tuan Anh, Director of the Da Nang Board of the PMU, stated: “Today’s achievement is not only the result of those directly involved in the construction but also the invaluable support from leadership, partners, and our families, who have encouraged and accompanied us throughout this long journey. Each concrete block poured and each roar of the machinery serves as a testament to the perseverance and determination of everyone involved.”

Representing Central’s leadership, Mr. Tran Dang Khoa, Executive Director, remarked: “We are honored to be entrusted with this project by the Sun Group. The Central’s PMB, with a spirit of relentless work, has overcome various challenges to stay on schedule. Moreover, with our experience in organized and methodical project management, we are committed to delivering a unique and exceptional product to the Investor.”

As we move forward, we wish the project team and partners continued success, maintaining collaborative efforts to ensure the project is completed safely and on schedule.