Restructured construction giant Tracodi gets set to execute ambitious plans

After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.

A company statement says the construction industry has significant opportunities as the government continues public investment disbursement to stimulate economic growth.

In 2025, the government is set to advance various essential transport infrastructure projects, including airports, seaports, highways and both inter-regional and inter-provincial projects.

Notably, an investment plan for the $67.34 billion North-South high-speed railway project is under discussion. These are opportunities knocking at the door of construction firms like Tracodi. To capitalize on public investment projects in the near future, companies have to strategically build up their internal strengths.

Internal focus

At end-August 2024, Tracodi changed its name from Transport and Industry Development Investment JSC to Construction Holdings JSC, underscoring its core focus on construction.

The group has various subsidiaries across diverse sectors, including construction and infrastructure (Tracodi E&C), taxi transportation (Vinataxi), labor export (Tracodi Labor), and stone mining.

In recent years, Tracodi has been consistently ranked among the fastest-growing companies in Vietnam. It is one of the few local companies to hold a tier-1 construction capacity certificate, qualifying it to handle large-scale projects in road, civil and industrial infrastructure as well as energy.

In addition to real estate and renewable energy projects from Bamboo Capital Group, Tracodi is currently implementing several other significant infrastructure projects. These include Phan Thiet airport in the central province of Binh Thuan, a residential area in the northern province of Bac Giang, the National Highway 3-Vo Nguyen Giap (Hanoi) route, and a section of bidding package 12 for the Chau Doc-Can Tho-Soc Trang expressway in the southern region.

For this year, the company has targeted a net profit of VND185.6 billion ($7.34 million) on revenue of VND1.92 trillion ($76 million), up 6% and 7.6% year-on-year, respectively.

For the 2024-2028 period, Tracodi anticipates an average annual growth rate of 12%, with revenue of VND3.8 trillion ($151 million) by 2028. Its net profit is expected to increase to VND348 billion ($13.77 million), while owner’s equity and total assets are projected at VND6.43 trillion ($254.6 million) and VND13.1 trillion ($519.3 million), respectively, by 2028.

To complete its 2024-2028 business plan, Tracodi is focusing resources on executing real estate projects that it has successfully bid on, like the King Crown Infinity apartment complex in HCMC, the Malibu Hoi An resort and villa complex in the central province of Quang Nam, and the Hoian d'Or ecotourism project in the namesake ancient town.

The company is also involved in some transport projects including Phan Thiet airport, the Duc Thinh residential area Project in Bac Giang province, and the upgrade of routes DT830 and DT824 from An Thanh bridge to Duc Hoa town in the southern province of Long An.

Tracodi is seeking opportunities in potential public investment projects and strengthen partnerships with reputable construction peers, both domestic and international.

Recently, it entered into a partnership with China Railway Group Limited (CREC) to invest in transport infrastructure, industrial parks, and social housing. CREC is ranked among the world's largest 500 companies by Forbes.

To position itself for future opportunities, Tracodi is exploring merger and acquisition deals with smaller rivals. It also plans to acquire new quarries and construction material mines to enhance its competitiveness and secure a more reliable raw materials supply.

Tracodi is also set to seek shareholders' approval for a private offering of 170 million shares. This issuance aims to raise its charter capital, strengthen the financial structure and support additional capital needs for production and business activities. If the issuance succeeds, its charter capital will increase to VND5.05 trillion ($200.1 million).

Recruiting talent

The group has implemented a broad leadership shake-up by appointing experienced professionals in construction and infrastructure. Following the resignation of former general director Pham Dang Khoa, who stepped down to pursue a new role, the company tapped Tran Nguyen Huan as his successor on October 9.

Before his appointment as the general director, Huan served as permanent deputy general director of Tracodi from August 2024. Over 25 years, Huan has successfully directed and managed numerous large-scale construction projects, ranging from high-rise buildings and public works to major transport projects.

A week later, the group also appointed Ha Chi Dung as deputy general director for construction. Dung holds a degree in civil engineering and has 21 years of industry experience. Before joining Tracodi, he held key positions at many leading construction firms in Vietnam.

With extensive experience in managing and implementing large construction projects, Huan and Dung are expected to significantly improve the group’s operations, enhancing the quality and efficiency of ongoing projects.

2024 is considered pivotal year as Vietnam focuses on completing its 2021-2025 public investment plan, which includes important transport projects. This presents the construction industry with significant opportunities.

Another positive impact will come from the gradual recovery of the real estate market.

With its strategic preparations, Tracodi expects to achieve breakthrough developments in the near future, contributing handsomely to the parent group’s revenues.