Construction major Truong Thinh Group steps big time into other sectors

With a slew of affiliates, Truong Thinh Group, a leading construction firm in Vietnam, has stepped into other sectors with projects in real estate, tourism, resorts and hydropower.

Its chairman cum legal representative is Vo Minh Hoai, who holds a 96.26% stake.

Founded in 1994, the group’s core expertise remains construction. It is currently building the North-South expressway’s Van Ninh-Cam Lo section in the central provinces of Quang Binh and Quang Tri.

The 65.5-km project worth VND9.92 trillion ($389.6 million) includes two packages and is expected to be done in 34 months after work kicked off in January 2023.

Another core area project is being implemented by a joint venture between Truong Thinh Group, Truong Son Construction Corporation, and 368 Construction JSC at a total cost of VND3.36 trillion ($132 million).

Yet another one, valued at VND3.48 trillion ($136.7 million), is being implemented by a joint venture between Truong Thinh Group, Contruction and Transportation JSC No.1, and Railway Construction Corporation JSC. In this project, 20.3 km is being built by Truong Thinh Group. Site clearance has been completed for 14 km of this section.

The group is also engaged in many key transport projects, most notably upgrades of National Highway No.1, Ho Chi Minh Highway and National Highway No.22.

It was a joint venture partner in building the VND11.5 trillion ($451.78 million) Son La-Tuy Loan expressway, which was completed in July 2021. It was also the main contractor for the Cam Lo-La Son and Mai Son-National Highway No.45 sections of the North-South Expressway in 2017-2020.

The group as so far joined 35 online bidding packages and won 22 of them with a total value of VND15.95 trillion ($626.67 million).

Diversification

As part of its foray into real estate, tourism and resorts, Truong Thinh Group leased 20 hectares of land from Quang Binh province in April 2019 for the Bang resort and hot springs project in Kim Thuy commune, Le Thuy district.

It has developed a host other projects in the province including: the Sun Spa Resort; Paradise Cave Ecotourism site; Bao Ninh urban site, a resort near the resting place of General Vo Nguyen Giap; and the 165.75-ha Bao Ninh Truong Thinh golf course worth VND800 billion ($31.43 million).

Truong Thinh Group has also taken on several build-operate-transfer (BOT) projects, including the VND370 billion ($14.54 million) La Trong-Song Gianh 1 hydropower plant and the Quan Hau and Trieu Phong-Quang Tri BOT toll booths.

In 2022, Truong Thinh Group earned a net profit of VND67.6 billion ($2.66 million), up 166% year-over-year. As of end-2022, its total assets were valued at VND6.7 trillion ($263 million), up 5% from early 2022. Its equity rose 1.6% to VND2.7 trillion ($106.07 million) that year and liabilities jumped 7.5% to VND3.97 trillion ($156.98 million).

As of July 2023, the firm’s charter capital had fallen to VND2.5 trillion ($98.17 million) from VND2.62 trillion ($102.89 million) recorded in June 2020.