DHA – Strengthening Trust of Investor

For the building material production sector, the social investment directly impacts the company’s production and business activities. Therefore, the market assessment and anticipation are crucial to the success of the company. Mr Lai Duy Hong, General Director of Hoa An, said: In the coming years, the government has prioritized infrastructure development with the aim of attracting foreign investment in the long term, leading the high demand for construction materials in the upcoming time. The development of infrastructure projects like building roads, waterways, industrial parks, export processing zones, urban zones not only brings in a broad market for the construction industry but also spurs the development of the construction material industry.

Advantageously, the development of mineral resources is being planned regionally; therefore, the supply is limited while the demand is increasing. Ho Chi Minh City and its surrounding provinces like Dong Nai, Binh Duong and Long An will continue to be invested to become satellite urban zones in the coming years. This will create a huge demand in this market. This will help increase the demand in these places where are the traditional main markets of Hoa An.

The span from 2007 to 2009 is considered a very difficult period for all companies as the economy fell into a severe recession. The economic crisis led many companies to hardships and even collapse, and Hoa An was unable to stay out of the whirlwind. Mr Lai Duy Hong said the economic crisis directly affected production and business activities of the company. For example, in 2009, the demand for construction stones dented significantly. However, 2009 was regarded a successful year for Hoa An in 2009 as revenues and profits were met. The company’s revenues reached VND192.6 billion in 2009, completing 127.22 percent of the full-year plan and rising 21.3 percent year on year; profits reached VND67.9 billion, or 283.3 percent of the yearly plan. Despite certain difficulties in 2010, the company managed to complete 70 percent of the annually revenue and profit targets.

Mr Hong said successes of Hoa An came from both subjective and objective factors.

Subjectively, the company has always taken the full advantage of its workforce’s effort, activeness and responsiveness. The very activeness and acumen in business and the consensus of the entire company have helped Hoa An overcome difficulties and find their own ways and appropriate measures to live through.

Not only withstanding the recession, with appropriate steps, Hoa An also secured a stable production growth. Currently, Hoa An quarry production will be extended one more year, which will expire at the end of 2010. The company is planning to invest in an eco-tourism site and residential zone in the Hoa An quarry and the Dong Nai Province People's Committee has approved in principle.

Apart from Hoa An quarry, the company also possesses four other quarries, namely Thuong Tan, Nui Gio, Tan Cang 3 and Thanh Phu 2. These quarries have large reserves and good quality stones and will create strong stability and development for the company in the coming years.

The Annual General Meeting 2010 set up revenues of VND202 billion and net profit of VND45 billion. Mr Lai Duy Hong said these targets are within reach, given what the company has made in the first half.