Coteccons Construction, a leading Vietnamese construction company, signed more than VND 5 trillion or US$196.43 million of contracts from March to May of this year. This brings the total value of contracts signed by the firm this fiscal year to more than VND 20 trillion or US$785.7 million.
Coteccons has performed relatively well over the last year or so, despite industry challenges due to a border slowdown in the real estate market. Notably, it has won several key industrial construction contracts for foreign businesses like LEGO, Foxconn, and Pandora. Furthermore, Coteccons is reportedly heading up construction of factory projects in India and Indonesia for electric car maker VinFast.
For contrast, Vietnam’s Hoa Binh Construction, has recorded accumulated losses in the past two years and has moved to offload several of its subsidiaries to shore up its bottom line. Of note, Hoa Binh’s core business is in urban housing and resorts, as opposed to industrial production like Coteccons.
This suggests the real estate sector’s woes are largely isolated to residential projects as opposed to industrial construction, particularly when it comes to foreign invested projects.
Coteccons closed Monday at VND 73,100 a share. Notably, as of June 21, foreign traders held 46.63 percent of the company’s shares with the company sporting a foreign ownership cap of 49 percent.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked