Vinaconex - Strong Competitor in Int'l Integration

Vinaconex - Strong Competitor in Int'l Integration

In recent years the fields of infrastructure and construction materials in Vietnam have made good achievements, helping to bring a new look to the country: new urban areas, high-rise building blocks, villa areas, modern bridges and industrial zones. These developments have proven the capability of Vietnamese construction firms, in terms of quality, scale and progress of implementation. One such typical company is Vietnam Construction Import-Export Corporation (VINACONEX).

VINACONEX is a diversified operation with the principle functions of building, consulting on investments, designing, surveying, trading and import-exporting construction materials and equipment and exporting manpower to the foreign labour market. In particular, investing in key international works is the main strategy for changing the structure and scale of the business, with the purpose of becoming a strong economic force.

Total revenue in 2001 was VND1.25 trillion, in 2003 this increased to VND2.4 trillion. With over 16 years of operation (1988 to 2004), VINACONEX comprises 80 sub units, of which there are 26 construction units and nine building material production units, amongst others. The corporation holds the key role of general management of these units and plans macro guidelines for the development of member units in implementing large-scale projects.

Financially, to guarantee stable capital for investment, the corporation has mobilised capital from stockholders of its member companies (VINACONEX No.6 was the first stock company of the corp. in 2000), investing in new member companies, establishing shares and cooperating with banks for a stable capital base.

VINACONEX has contributed to large and varied projects such as: My Dinh national stadium, Trang Tien commercial center of Hanoi, Trung Hoa – Nhan Chinh new urban area, Hotel Metropolitan Melia, and cement plants of But Son, Nghi Son and Hoang Mai which have been considered by international partners as being of international standard.

To participate in such projects, the corporation has bravely invested in and applied new technologies for large-scale works, such as: sliding technology for high industrial and civil engineering building (which VINACONEX has been granted an invention license for), new moulding technology in bridge design and construction, technologies for building the high-rise living quarters of Trung Hoa – Nhan Chinh and ceramic plants of Phu Cat- Ha Tay. These new technologies have saved significant money, time and land area for investors. In the area of construction material production, there are also new technologies in artificial ceramics, safety glass and cement production. These technologies have been applied by the corporation creating economic savings for projects, as well as creating a team of qualified and experienced employees.

With its practice of investing in cooperation, VINACONEX has also created a positive work and training environment for its staff through cooperating with and learning from international partners. Now the corporation has two joint venture companies: VINATA – a joint venture between VINACONEX and Japanese construction giants TAISEI, second largest in the world, and VINALEIGHTON – a joint venture between VINACONEX and Leighton Australia in Hong Kong. Both ventures are presently operating effectively in Vietnam. Over the last five years, VINATA has reached total revenues of VND665 billion, of which gross profits were VND32.5 billion. Works such as cement plant ChinFon in Hai Phong, and Toyota Motor Vietnam that VINATA have contracted are highly appreciated by their partners. They also confirmed that working with VINACONEX is effective and beneficial.

After 16 years of operation, VINACONEX has made many achievements and been recognized by the Vietnamese Communist Party, the government and the State, with many respected medals. With the strategy to 2010: “Continue the direction of business, diversify and create higher quality products. Renew and restructure every company and progress stock companies, for a strong economic corporation” (cited Mr. Nguyen Van Tuan – General Director of VINACONEX), it is strongly believed that VINACONEX will be one of Vietnam’s construction organisations which will compete well in the coming years of economic integration.

• Le Hien