With a view to creating a transparent environment for our investors, on January 16, 2023 Coteccons Construction Joint Stock Company (ticker symbol: CTD) held a shareholder meeting. In his opening remarks, Chairman Bolat conveyed a message about TRANSPARENCY to all participating shareholders “When I was first elected the Chairman of the Board of Directors of Coteccons, my commitment was to put in place best corporate governance practices, especially those that promote transparency. At that time, my belief shared by many of my colleagues here was that there had to be transparency between major investors, BOD members, or those directly employed by the company but also to each individual investor and shareholder owning CTD shares”, said Mr. Bolat Duisenov – Chairman of Coteccons Board of Directors, at the start of the dialogue. “Let’s further uphold this culture of transparency as at Coteccons there’s actually nothing to hide, even when we face challenges or reap unsatisfactory results. Such information can absolutely be shared honestly and openly with each other,” Bolat added.
Overcoming challenges in 2022
- The year 2022 has passed, can you share your business performance (revenue, profit, achievements) in 2022 and your expectations and plans for the year ahead?
Mr. Vo Hoang Lam – General Director of Coteccons: In 2022, the company is implementing 65 projects in all three regions, spanning from the North to the South of Vietnam. Key outstanding projects include Lego, Diamond Crown in Hai Phong or VinFast Factory, among others.
As of now, our total revenue is about VND 14,500 billion, fulfilling 97% of our plan, which will be soon updated in the coming days. Meanwhile, profits hit the plan. These are a few of highlights in 2022.
For 2023, we are having conservative figures based on the existing backlog, which is expected to increase by 10-20% compared to 2022.
Mr. Bolat Duisenov – Chairman of Coteccons: As a listed company, Coteccons is expected to publicly disclose information from time to time. Apart from transparency, our forecasts and analysis should be effective to support business operations.
I guess many shareholders have read Internet sources which quoted our failures or losses in 2022, which are all untrue. We aimed to be also cautious for 2022. It is clear that 2022 is not an easy year for the market. In fact, we struggled too, but we managed to achieve a positive P&L (business performance). Thanks to such a positive P&L, we stay competitive to bid for both public and commercial projects.
- Contract awarding in 2021 was quite difficult due to the impact of COVID-19 and higher price of raw materials and labor costs, etc. Quoted in some sources, Coteccons won bids for some projects in 2021 but actually run at a loss after contract awarding. Can you tell if you are still facing any challenges and if the total revenue of the projects can make up for your losses?
Mr. Vo Hoang Lam: For 2021, in addition to the COVID-19, we were also affected by many other factors. Of course, Coteccons was not immune to the impacts of fluctuations in market prices of materials and construction costs. Currently, we are implementing a series of large-scale projects. For this, we have built our network of subcontractors and suppliers. Together, we can strategically offer the best quotes for each contract, depending on the project we are negotiating with the investor depending on new market developments due to COVID-19 or price fluctuations.
We are also shared by some investors on this. We also had certain difficulties in 2021 and 2022 but all were under our control.
Mr. Bolat Duisenov: I would like to add that 2021 was an extremely difficult year for not only Coteccons. We have gone through challenges and fruits of our efforts will surely come in the next 2-3 years. Coteccons’ projects were almost frozen during COVID-19 while, in early 2022, despite conservative business goals, we could not predict strong fluctuations in the market. There were certain points when the price of raw materials increased by 25%, including surging prices of steel or concrete. This obviously affected our profit margins. Yet, with the joint efforts, we managed to overcome these challenges and reap positive results this year. In 2022, the world transitioned to a better position to end the COVID-19 while China has just reopened its border, after years when its market and supply were inaccessible. We feel fortunate that we have successfully carried out our plan, even though we could have done better. Personally, I believe that from 2023 onwards, these results will only get better and better in the future.
We are in the safe zone
- It is known that the company did not traditionally set up provisions. Yet, from 2021-2022, this has been practiced. Can Coteccons management tell us if you plan to set up provisions in 2023 and, if yes, the amount of funds to be set aside?
Mrs. Mai Le: Coteccons have started creating provisions, which is now known to all shareholders. This is also evident on our financial statements. In 2023, Coteccons will also adhere to established processes under the principles of prudence and transparency. We are still in the process of reviewing and evaluating figures for 2023. When the economic situation improves, I think the amount of provision will not be so high.
Mr. Vo Hoang Lam: Previously, Coteccons did not create provisions. However, starting in 2021-2022, we have pursued a policy of transparency, so, for any risks, we will work with internal auditors creating provisions for our financial security. When debts are recovered, we will then refund this amount. With a clear provision, we can better plan for 2023 and the following years.
Mr. Bolat Duisenov: I want to add a little more. Provisioning is not about setting aside and losing an amount of funds. That’s how the system works, if payment for an item is not made on time, we must immediately set up a red alert for that item. Provisioning is for financial and risk management. This is practiced not simply to ensure stakeholders, such as the tax authorities, can see there is a bad debt from the investor side, but also ensure that there is a sum of funds dedicated for such an item. And as Mr. Lam said, it will not be lost, when we recover our debts, such amount will be refunded to the company.
I also want to share a bit about the case of Tan Hoang Minh. As you all might know, in 2022, we created a rather large provision regarding this investor. If we did not do so, our business performance will obviously be much better. But we had to create a provision given such a risk. We will continue to work on debt collection, and when done, this amount will be refunded to the company.
- Risk of bad debt with some investors that are currently facing a loss of liquidity. It is now rumored in the market that Coteccons’ bad debt can reach 2,600 billion. Nam Hoi An Casino, Son Kim Land, NovaLand projects, etc. lead to an increase in the amount of provisions. What is your plan for receivables in these projects?
Mrs. Mai Le: The projects Coteccons is involved are all Mega projects with a contract value of several thousand billion Vietnamese dongs. Similar to other construction projects, the handover and financial settlements will take time and the payment progress will be slow. That is why shareholders can see that receivables on our financial statements are large and have not reduced much. I would like to make it clear that 2,600 billion is an incorrect figure.
Coteccons established a debt collection committee, and, last year, also set up a risk management board. Periodically, we would sit back to review bad debts, based on the financial health of the investor and market developments to determine if one debt can be categorized as a bad debt. After our internal assessment based on the principle of prudence and transparency, provision will be created.
Mr. Bolat Duisenov: These are great customers, and we are proud to have built great projects for them. Not every construction company can complete projects at such a large scale. Looking back, Coteccons has built iconic buildings in major cities, so such rumors are having negative effects.
In terms of risks, some are hardly predicted. The COVID-19 pandemic is one example and 2023 will not be an easy year given market fluctuations. Therefore, all companies, not just Coteccons, will face challenges. We are constantly looking at receivables as well as projects, customers, etc. To date, we have not seen any risks with the receivables from these customers, including failure to recover such amounts. There are no signs of such risks.
In 2023, we will enhance risk management by taking more steps in the business process before deciding if we are going to join a particular project. We used to look at a project technically to see if we could meet the requirements of the investor, yet we now consider the financial health of our clients before deciding if we are going to partner with them.
- Is Coteccons currently implementing any projects related to Tan Hoang Minh, FLC, Van Thinh Phat and Sunshine and what are the risks you are facing?
Mr. Bolat Duisenov: For Tan Hoang Minh, it is true that they used to be Coteccons’ clients, we have built a number of projects as contracted with them and unfortunately we have to create a provision for their debt of about 480 billion in two consecutive years. Our legal department have been working hard to explore a solution to recover this debt. We currently do not perform any FLC-owned projects. For Van Thinh Phat, they awarded us a contract for IFC Saigon Tower One project – a beautifully designed building and an exciting project. We also started this contract, but, due to some disagreements with the investor, both sides failed to share a common voice, so we terminated our contract and withdrew from the project, and our spending for this project was also very minimal.
- What strategy does Coteccons have to ensure that an investor is making timely repayments and not misappropriating capital?
Mr. Bolat Duisenov: Back to risk management, that’s what we’re constantly doing better. Earlier I mentioned the concept of boosting repeat sales in our strategy – we want to get more projects from existing customers, we have already completed a project for one client and expect that client will award us contracts for the second or third project, etc. It is one of the approaches to better risk management as we already have proper insights of these customers, including their financial health, ability to pay, etc. while trusts between the two parties has also been established.
The second group of projects that we focus on to minimize the risk of capital appropriation is FDI projects. Big projects like Lego must have been fully budgeted before formally launched in Vietnam and investment licenses should have been granted, similar to the Tesa factory that Coteccons is constructing in Hai Phong. We will focus on those customers to be able to manage risks.
We will also push, under these projects, for a temporary advance, protecting our cash flows right from the start. For some customers, their late payments would lead to negative cash flow, in which case we can push them in many other ways. In terms of solutions, they can be asked to provide bank collateral and, in case of their failure in payment, there remain options for us to collect debts.
Overall, we aim to work with large and reputable companies like Vingroup, Ecopark, etc. We should not worry too much about outstanding receivables to be collected from them because they are reputable and large companies. In 2023, our risk management will certainly be enhanced and more rigorous. Our shareholders will have a clear sense of our practices and we will ensure that everything is under our control.
Mr. Vo Hoang Lam: Our company has a risk management system that covers financial or project risks. The system is being deployed and hopefully its impacts can be more obvious. Previously, risk management used to be handled by the main office, but Project Managers are now delegated for such a task. The project managers are closely monitoring cash flow risks. We have also adopted a policy of transparency and information disclosure. When there are signs of cash flow imbalance that has not been initially planned, we and the investor have actually had solutions for it from the beginning.
Mrs. Mai Le: To manage capital misappropriation by an investor, this depends a lot on our management system. Coteccons is having a real-time monitoring system that tracks all developments on construction sites, debts or risk management and assessment, which can be immediately shown in reports to the Board of Management for immediate actions to mitigate risks. Currently, this system is deployed in its phase 2 after, in phase 1, we focused on financial issues, purchases and contracts… In phase 2, we are focusing on construction cost management to ensure all financial information is collected timely to inform decisions that reflect construction progress.
- Regarding risk management, why are you planning for bond buybacks not long after your issuance? Is there any problem with the bond issuance process?
Mrs. Mai Le: There is no legal issue in issuing bonds and bond repurchases are not part of our plan. But as you might know, there have been issues related to bonds issued by some investors, leading to shareholder concerns and requests for the bonds to be repurchased. According to Coteccons’ bond issuance policy, for any shareholder who wishes us to buy back the bonds they are holding, we are ready to buy them back as committed. Therefore, shareholders can be completely assured that Coteccons can repurchase our bonds and this is completely under our control.
Mr. Bolat Duisenov: I would like to affirm to those who own Coteccons bonds that we are fully capable of repurchasing bonds from any shareholders who do not wish to hold Coteccons bonds. The bond issuance process is completely in accordance with the law. We have also received advice from other companies and professional experts on securities, ensuring professionalism and legal compliance in our practices. When we came up with the bond issuance plan, the registered buyers exceeded 3-5 times. This meant investors were eager to buy Coteccons bonds. We are very confident that when we participate in large infrastructure projects or mega-projects, we can provide working capital in cases where it is needed to raise capital quickly, with concessional interest rates.
- Are there any potential risks of losing capital in Coteccons investments? Is the investment decision approved by the Board of Directors and who has the approval authority?
Mr. Bolat Duisenov: In 2021, during the COVID-19, our revenue was VND 9,000 – 10,000 billion, plus a small amount of cash. Like all companies, we have a fund management department – supporting us in managing our cash most effectively. With available cash, we have different options such as savings, bond or stock purchases, etc. The way to do it is that we don’t put all our eggs in one basket. It is about how we can properly coordinate cash management to generate benefits for the company. In 2022, we decided to invest our money in stocks, and we sought advice from a professional, well-known consulting firm in this field. We made this decision under the most stringent conditions to protect the company’s funds. When VnIndex dropped from 1,500 to 850 points, as an investor, we were also affected but now recovering very quickly. I wish to emphasize that we are in the safe zone.
”We don’t want to be a company that just builds buildings.”
- Can you share more about your ability to master Pre-cast technology? What benefits has this technology brought to Coteccons?
Mr. Bolat Duisenov: As we redefined our vision and key strategies, diversification is one of Coteccons’ very important directions. We don’t want to be just a company, now and in the future, that only builds buildings even though we have done this excellently. We want to grow our business lines more horizontally. To be a sustainable business, we must diversify: our customer base, business lines as well as markets.
In the process, we will explore potential technologies to be put into practice or business models, etc. so as to document lessons learned and define the right directions.
For the pre-cast technology, it’s too early to provide specific comments on this but I think sooner or later this technology will be indispensable as it helps us reduce labor costs and shorten construction duration. We can apply technologies and machines in our construction. We have also reviewed the application of Pre-cast technology in such markets as Thailand, Singapore or Malaysia, etc. We have also built a dedicated Pre-cast team at Coteccons to learn more about it and take specific steps when market conditions are suitable.
Mr. Vo Hoang Lam: We started deploying the pre-cast technology in 2021. Coteccons’ strategy to 2025 is to diversify its activities towards greener and cleaner operations and Pre-cast is part of this strategy. At Coteccons, we already have a research team working on this technology which is now being applied. Specifically, for low-rise buildings, the pre-cast technology is being applied in the North, or factories in Vinh Long and Binh Duong. For high-rise buildings and infrastructure or industrial projects with demanding design requirements, the pre-cast technology is mandatory.
Currently, Coteccons’ pre-cast team has been in place. In terms of increasing the use of pre-cast concrete in the future, it depends on market developments. Pre-cast is an assembling technology. Most of the stages are performed in the factory, while there is only structural assembly and connection on site. Therefore, the quality will be much better thanks to quality precast concrete and skilled construction workers. Factory workers are highly qualified and can work stably, so product quality is controlled.
With pre-cast concrete, in the near future we can build residential areas or cities at a very fast speed. As you can see, neighboring countries such as Thailand, China, etc. have now started to build new urban areas using pre-cast concrete. We have prepared for this transition to be ready in the near future.
- Another question is also related to the company’s diversification of business lines. Vietnam has recently called for public investment intensively. So, what have been your responses to the call? Do you have a specific strategy or action?
Mr. Pham Quan Luc: Regarding public investment in construction, our preparations started in 2022. We have developed an organizational structure for this purpose, including human resources, skilled workers, equipment, warehouses, etc. Participating in public investment projects also depends on Coteccons’ capacities. If a project requires financial capacity, scale, workforce, or skilled managers, etc., then we will carefully consider such requirements before participating.
Mr. Vo Hoang Lam: There are currently many projects developed on the market and Coteccons have performed very large, or mega, projects. When it comes to large projects, Coteccons doesn’t go all out to get those projects. For any project, we will analyze its risks, what needs to be prepared, what values it will bring to us in the future and whether it is in line with our infrastructure development policy in the near future.
In the infrastructure development segment, we also have a lot of projects underway, but most of those projects are buildings or residential areas, etc. In the near future, the Board of Directors will assign dedicated teams in charge of infrastructure development.
- Do you plan to engage senior personnel in the field of infrastructure or public investment to promote your business in this segment?
Mr. Pham Quan Luc:
We have a large number of experts advising and supporting us in this segment, but history has proven that, in difficult times, “Coteccons DNA” always shows its superiority and Coteccons future can only be built by its people, even in new areas we have never worked on: drastic actions with risk management included, high technicality and technical assessment for safety and quality assurance.
From building a normal project to a mega project like Landmark. In our management team, there have also been foreigners over 18 years of our development. Currently, the executive board also has many foreign members. Coteccons alone can’t do everything. The most important thing is that everyone, including all of our partners, together creates a Coteccons DNA, on which we can leverage internal, our partners’ and global resources… The Coteccons DNA will enable us to build a really strong Coteccons.
- What is your new contract value next year? In the total value of new contracts, does the infrastructure projects take up a large proportion? Can you share more information about your winning bid for the Long Thanh airport project?
Mr. Vo Hoang Lam: The recorded backlog for 2023 is about VND 17 trillion, the value of new contracts is likely to be equal to or higher than that depending on the market situation. Among these, infrastructure projects, including infrastructure in residential areas, account for about 20%.
Mr. Pham Quan Luc: Infrastructure and public investment encompass many areas such as airports, road bridges, metro, ports, etc. Depending on their alignment with Coteccons’ strengths, we may decide to either insource or partner with other companies, but we will prioritize projects relevant to our strengths.
Allow us to keep the details to ourselves for now because of non-disclosure agreement with partners and developers. Please rest assured that we always stand ready to participate in the major infrastructure sectors of Vietnam.
- As you just shared, the total backlog value in 2023 is VND 17 trillion? The contract value in 2021 was more than VND 25,000 billion in 2021, why was so little done in 2022? Does this backlog include the Lego project? If not included, can Coteccons clarify when you plan to officially sign the contract for this project and add it to the backlog? Rumor has it that when bidding for this project, Coteccons proposed not to receive an advance to win the bid? Please clarify this information, does the backlog include projects that were announced as bid winners at the end of 2021 but have not been implemented such as Metropole phase 4 and Infinity?
Mr. Vo Hoang Lam: The total backlog value of Coteccons in 2023 is VND 17 trillion. We record our backlog in a conservative manner. For projects constructed in different stages, Coteccons will record the backlog upon completion of each component.
Regarding the rumor “Coteccons proposed not to receive an advance to win the bid”, we are bound by a regulation not to disclose information about the contract signed with the developers, but in this case, I can tell you now that it is absolutely not true.
Mr. Bolat Duisenov: We always think that planning matters, early 2022 saw critical challenge in planning and target setting given disrupted supply chain and market uncertainty. Our principle is that even if the project has already been awarded an LOA (Letter of Agreement) by the developer, we will not record it as a backlog right away until any stage is completed.
When serving as the General Director of the company last year, Mr. Lam had set three important targets for the Company’s Commercial division. First, secure Repeat Sales – that is, previous customers must continue to entrust us with new projects. This is a testimony to our quality works delivered to them. This also makes so much sense because we already understand these customers, we know their financial health, know how they operate, how to work with them. Second, focus on flagship projects, demonstrating our capabilities and strengths over competitors.
We also like to prioritize iconic projects in terms of aesthetics, design or technical sophistication. So instead of setting goals that are too ambitious, we are very cautious and realistic in every step of building our strategies, plans and goals.
Coteccons DNA matters and that is the strength we take pride in. We live it every day and always uphold the quality of the works that we build.
In an era of prevalent fake news, rumors or unhealthy competition to jeopardize our brand, instead of being misled by them, please visit our offices and construction sites to see firsthand what is happening.
I myself often receive messages and rumors from different channels and there’s no point reacting to such. We can only focus on doing well what we are supposed to do. If any customer questions our credibility out of such rumors, don’t try to explain anything but have them visit the projects we are building so they can witness with their own eyes how we are doing. That will speak louder than any words. If anyone has any doubts or questions, just ask us or come to us directly at Coteccons’ construction sites.
The humble giant
- Hoa Binh Group, Coteccons’ rival, is facing an internal crisis. Does Coteccons take this as its opportunity, at least in terms of regaining the position of the largest construction company by revenue in Vietnam?
Mr. Bolat Duisenov: I noticed that in the market, Coteccons is often called the largest or the leading construction company, or even “giant”, which is quite interesting. However, we want to be mentioned with humility. We are truly humble people, so we would like to call ourselves the humble giant. It is true that we are a big company with 2,000 employees. Most of them are civil engineers, who are doers rather than talkers. We know what our company’s values are and what to do to protect those values. We set strategies to agree with each other on bringing these values to Coteccons’ customers, partners, shareholders and employees. We absolutely do not believe in the idea that a single person can do it all, especially in this industry. In Coteccons, we always go in teams sharing the same results and the same trust.
I want to take an example that, just like some parents who often complain and reproach their children for being not as good as their peers, a company that keeps comparing itself to others will always find ways to change and not be truly itself. Once again, we know very well what we need to do and how to do it to build a great company, so we need to be patient and take action step by step to do it. We have defined our direction, and our vision will not change just for catching up with people’s comparison. Our whole team share that same vision and stick with it.
- Talking about the Coteccons team sharing the same vision as you have just mentioned, the share price on November 16, 2022 dropped to VND 23,450/share, Chairman Bolat wanted to buy the shares, but the ownership cap has been reached, and other leaders did not buy any shares to reassure shareholders, in general, Vietnamese leaders hardly hold shares of the company. Many shareholders expressed that they trust Coteccons but still feel uneasy when Vietnamese leaders do not hold any shares.
Mr. Vo Hoang Lam: In fact, we represent the Board of Management who are chosen to manage the company. Many members of the Board of Management and I have been attached with the company for a very long time and during those years we only focused on working and did not have an idea of investing in shares of Coteccons and other companies. However, if anything benefits the future and the development of Coteccons, and brings the trust, commitment, and attachment, we will do it.
Mr. Pham Quan Luc: We are administrators putting with maximum focus on work, do not spend time thinking about stocks up or down, I don’t pay attention to that. If this is beneficial for the company or reassures the Shareholders, maybe we will sit down and discuss buying some. However, if we do so, we might not make a huge change or create any trend.
Mr. Bolat Duisenov: For me, I have a different opinion about the commitment of the members of the Board of Management to the company. If the shareholders want to know whether the members are committed to the company, they can come to the company’s office to see that the lights are still on at 9-10 P.M, even the leaders, or some project groups work in the weekend.
I want to say to my colleagues and shareholders that, if you want to buy shares of Coteccons, just buy some for your interest, and it is because this is a suitable time, not because anyone tell you so and you must do it to please them.
I want to share my personal point of view that, when making any decision we have to take responsibility for that decision, be it for ourselves or for anything. That decision should come from the heart, not for reassuring anyone, and it should not be in short-term to please people.
Regarding the plan to expand the room for foreign ownership ratio, in the near future, to create fairness for all shareholders, according to the company’s charter, the foreign room can be up to 60%. However, the actual ratio has not been up to that level because the process of registering and permitting is still quite complicated. Currently, this ratio is 49% and we expect to increase it to 60%, which will have to be approved in this year AGM. At that time, in the market, there will still be questions such as whether Coteccons is a foreign company or a domestic company. Then my answer is that Coteccons has always been a Vietnamese company because Coteccons was established and listed in Vietnam, so our shares are listed, traded, and owned by shareholders who are Vietnamese nationals or resident foreigners in Vietnam. This is a free market, and the construction industry is not limited in term of foreign ownership in companies by the Vietnamese government.
I guess many foreign shareholders have the same questions, because I personally cannot buy more shares due to the limited foreign ownership, even though I want to, however we shall comply with our obligations and applicable laws in Vietnam. I think we can expand the foreign room in the near future.
- Talking about the shares issues, many shareholders wonder that CTD’s stock price dropped to thirty something, even lower than the trough during Covid-19 pandemic when Mr. Duong left, is the promise of Chairman Bolat to shareholders still valid?
Mr. Pham Quan Luc: As we have shared, the company’s orientation is in long-term. In some moments when the whole market is down, such a sudden situation or side rumors may somehow make CTD’s stock fall lower than its book value, but if we persist with our commitments, strategies, everything will soon return to intrinsic value.
Mr. Bolat Duisenov: Our current share price in the market does not fully reflect the capacity and value of our company. Let’s look at what’s at the heart of the company: we have a strong team; we have customers who completely believe in our company. I have not seen any customer complain or say that they do not want to assign work to Coteccons. We are fully capable of implementing projects on schedule with the strictest standards and the best quality. We absolutely have the necessary resources, equipment, supply chain, and a very healthy balance sheet.
Our receivables and customers’ soon due payments currently look good for the company. We also have a clear vision and strategy, and all of the most important foundations for the company’s growth. We are also now invested by some financial investment groups, each of which holds more than 5% of the company’s shares. Additionally, we have strategic shareholders, some of which are members of our team. None of the subjects I mentioned above want to sell shares of the company. We have small share liquidity and no short-term investors at this time, which is a very good sign. The share price is clearly not being properly reflected and we must have a long-term view.
If the price is VND 35-40 thousand/share, no one will be able to buy and own a large ratio. Last year we were very busy, but turning to 2023, we will improve our relations with investors as well as the work etiquette with investors. We apologize if in the past time we have been too focused on reforming the system as well as improving and consolidating the core values and competencies of the company. If last time I said that Coteccons was back in the game, this time I want to say that Coteccons is rising to the top. The foundations are already available.
What makes a great company?
- In the past year, Coteccons has carried out many marketing activities such as Quang Binh Marathon, BUILD TET project, etc. Are these activities really effective for the company as the expenditure for these activities is not small and the construction industry has experienced a hard time so companies in this industry have had to tighten their budgets?
Mr. Bolat Duisenov: I want to answer this question from a slightly different angle. As you may know, I often mention “the sustainable and long-term development”. In 2021 – 2022, the most important achievement that the company has achieved is to change the perception of the public as well as the internal team in Coteccons. We emphasize the mindset and vision of the Coteccons team the most. I want our company to have a team of talented people with the same orientation and trust to go in the same direction. Going on the same track is not because our leaders told us to, but because we believe that together we could build a great company.
I want to share why I and my colleagues are motivated to come to work every day, and where we’ve come up with this idea. We often say to each other that we want to build a great and strong company, so how do we define a great company? A great company must satisfy the following criteria:
First: Go on the right track to achieve outstanding results. Take a look at the super projects we have been awarded and are working on such as Lego, Diamond Crown, etc. It was impressive that the team in the North built a factory in just 2 weeks. 14 working days and the team in the North built a factory.
Second: The company’s mission. Our mission is to bring a positive impact on the community and society through the works that we build. Look at the projects of Coteccons, we are constructing iconic buildings of cities, even at the national level.
Third: That company creates and leads the new trend on the market.
In the end, a great company must treat people equally. It must ensure the fairness between internal and external stakeholders. It must comply the win-win principles, ensuring the interests of all parties.
Back to the Quang Binh Marathon, we held this event for the health of the participants. Firstly, we want to create a health practicing movement for Coteccons employees because only healthy people can build and run a great company. Then we opened public registration for this Marathon, apart from Coteccons employees. Gladly we received 1,500 registrations from other companies. They paid for the transportation to Quang Binh and registration fee themselves to run with us. With a large number of registrations, we partly handled the cost of the event. In return, their participants were able to witness the Coteccons culture, the dynamism, and the emphasis on health and spirit of Coteccons people. After that marathon, I heard that many people got into the habit of running. The participant in Quang Binh Marathon asked us if we would do it again this year because they enjoyed participating with Coteccons.
About the Build Tet project, we not only initiated a new movement, but actually organized a campaign to engage partners, customers, even companies in the same industry to join hands to give support to construction workers – the most important people in this industry. To be honest, monetary value was not significant at all, but it is a meaningful token of heart-felt gratitude to the most important, hard-working people in the construction industry. I don’t want to bring in the company’s expenses. I want to see the events from the perspective that we are focusing the public attention on these people, our construction workers – who have been with the company for the past decades to build great works like the Landmark 81.
We walk we talk. Day by day, through concrete actions, we are building a stronger company, and focus on long-term and sustainable development.
Mr. Pham Quan Luc: The value of each gift was about VND 450 thousand for 12 thousand workers, so it was about VND 5.4 billion in total. Some operation expenses such as shuttle bus, Tet holiday supports were 1.5 billion, transportation and communication costs were about VND 2 billion. In total it was less than VND 10 billion. Coteccons is a listed company, whose all procurement activities are carried out in accordance with regulations with the most appropriate and best partners in terms of gift quality, delivery, design, etc. Besides, some of our partners such as Doji, subcontractors like VINAMA, Protech also support us with billboards. Those are the actual activities we are carrying out, besides great intangible values such as enhancing the status of Vietnamese construction workers, the appreciation by the press, the Ministry of Labor, Invalids and Social Affairs, etc. Thereby, we open up opportunities for preparing resources for big projects and other fields with this skilled workforce.
Mr. Vo Hoang Lam:
By “Building Tet”, Coteccons is going against all odds. It’s a challenging journey that hardly anyone would embrace but Coteccons will do it, thereby creating true values. We want to share a story of gratitude with our End-Workers in the value chain of creating construction products.
It also reflects how we care about the SAFETY and QUALITY of works for our clients through the way we take care of the End-Workers.
Thank you for today’s talk!
