Previously invested projects will refill cash flow for Vietnam major builder CII’s next growth leg: CEO

Le Quoc Binh, CEO of Ho Chi Minh City Infrastructure Investment JSC (HoSE: CII), likened the company to a marathon runner that cannot keep running nonstop and at times must stop for “water,” recover strength and continue, with that “source of water” coming from property projects the company has already invested in.

“For example, the NBB3 project in HCMC has about 2,800 units and foundation work has been completed. If land-use fee payments are finalized this year, we can begin sales,” Binh told the 2026 AGM on Tuesday.

According to the CEO, a 2,800-unit project with average apartment sizes of about 60 square meters and selling prices of roughly VND60 million ($2,277) per sqm, with an initial 30% payment collected on schedule, would still generate substantial cash after construction costs. More importantly, the funds would come from projects already in hand rather than new investments.

Other projects such as NBB2, also in HCMC, already have legal approvals and land banks in place. Once the remaining procedures are completed, they can be launched to generate cash flow.

CII is not prioritizing aggressive expansion at this stage, instead focusing on monetizing existing projects to fund its next phase of growth, he continued.

Delays in legal procedures have an impact, but do not mean capital is lost, Binh stressed.

He said CII had invested in infrastructure and been compensated with land banks, meaning the capital was neither stranded nor lost. Any delay would simply defer profit recognition by one to two years rather than this year, representing an opportunity cost.

As a result, the company is maintaining its cash dividend policy. Funding for payouts comes from monetizing previously invested projects rather than refinancing debt.

Build-operate-transfer (BOT) projects follow a cycle, Binh said, elaborating that in the early stage, traffic volume and toll rates are low, resulting in weak cash flow. Over time, however, as traffic increases and debt declines, cash generation improves.

Based on the company’s projections, BOT assets are expected to begin producing stronger cash flow around 2029, when shareholders would start to see more meaningful benefits.

Touching upon the Thu Thiem New Urban Area in HCMC, Binh said it is exceptionally large and highly complex. While many investors may view it as unfeasible, successful execution could unlock substantial value not only for CII but also create a template for transit-oriented development projects nationwide.

Regarding the Hang Xanh transit-oriented development project in HCMC, he noted that it is not a product aimed at speculation. Target customers are end-users seeking housing, workspace or business premises, meaning demand should be less sensitive to interest rates than at speculative projects. As such, borrowing costs may have an impact, but are not the deciding factor.

He added that the company is in talks with multiple international partners and major investment funds. For the Hang Xanh project alone, dozens of foreign investors have expressed interest and are ready to participate. However, CII does not plan to bring in investors at the outset, as the initial phase centers on research and preparation, where the heaviest workload lies.

Bringing in investors too early could dilute value for existing shareholders, the CEO explained. As a result, CII plans to independently lead research and development in the first phase.

In the second phase, once the project becomes clearer, the company would invite investors to participate on a partial basis. Office towers and shopping malls, for example, could be sold or jointly developed with major investors, who may acquire an entire building at market prices. CII does not necessarily need to retain all assets for self-operation.

Three major projects

Binh also disclosed that CII had been approved as the proposing investor for two new infrastructure projects under the public-private partnership model. The projects emerged after the company released materials for its AGM, with total investment value potentially reaching more than VND100 trillion ($3.79 billion).

One of them will be developed under the build-transfer model, in which land is exchanged for infrastructure, while the other will follow the traditional (BOT) structure.

The BT project is not only large in scale but also urgent for HCMC, directly tied to easing congestion, flood control and improving infrastructure connectivity. The BOT project, meanwhile, would strengthen links between the city and seaports, Long Thanh International Airport in neighboring Dong Nai province, as well as major industrial parks and residential areas across southeastern and southwestern Vietnam.

Also on Tuesday, the Dong Nai People's Council granted in-principle approval to an elevated road project running along National Highway 51. The project, proposed by an investor consortium led by CII, will connect HCMC with Long Thanh airport and the Ba Ria-Vung Tau area (formerly Ba Ria-Vung Tau province, now part of HCMC).

On the Ho Chi Minh Stock Exchange, CII shares closed Tuesday at VND19,000 apiece ($0.72).