Nghe An Construction Company 1

Nghe An Construction Company 1

Starting from a construction team founded on May 24, 1959, Nghe An Construction Company was established on November 25, 1961 by Nghe An People's Committee. After some units were devolved and formed Construction Company 2, the remaining body was transformed into Construction Company 1. In December 1996, the company was reorganised following Directive 500/TTg of the Prime Minister to include 9 other construction enterprises of Nghe An. The company presently has 18 units and 2008 workers.

The main business activities of the company are construction and the production of construction materials. The company has had to work to resolve old financial problems and make some its labour force redundant. In March 2004, the company was reorganised again, separating units producing construction materials and in April was equitised with a new form of ownership.

The company implements such projects as power lines, transformer stations up to 35KV, small hydro-electric stations, roads and bridges. Since 2003, the company has diversified its activities: trade, human resources development, labour export and construction materials.

In 2001, the turnover of the company was VND82,045 million, profit stood at VND613 million, per capita income VND680,000/month and State revenue VND2 billion. In 2002, it was respectively VND90,386 million, VND733 million, VND 750,000 and VND1,398; in 2003, it was VND115,245 million, VND1,725 million, VND890,000 and VND2,081million, respectively.

The company has also upgraded its management and marketing, encouraging and attracting technicians and workers. In April 2004, it started the equitisation process, increasing investment and services and becoming an investor itself. The joint stock company increased in size to include some other joint stock companies of the province. Its registered capital is VND8-10 billion and a workforce of 400-500 people. The company continues the implementation of commercial centres and housing projects, namely the Hung Dong handicraft zone (19 hectares), Quan Bau urban area (30 hectares), the expansion of production of construction materials, labour export and other services.

In its transformation and development the company also seeks the support of   concerned authorities and agencies in solving financial issues after equitisation such as taxes, debts and preferential shares of the workers.