Top construction firm Coteccons appoints new general manager

By Trang Nguyen
Fri, August 5, 2022 | 11:45 pm GTM+7

Coteccons, Vietnam’s leading construction company, announced Friday the appointment of Vo Hoang Lam as its new general director after leaving the position vacant for 18 months.

Lam, 44, was previously a board member and deputy general director of the private firm.

He has been with Coteccons since the early days of its establishment and has held many important positions in the company including chief commander, division director, project director and general director of subsidiaries.

Vo Hoang Lam, newly-appointed general director of Coteccons. Photo courtesy of the company.

Vo Hoang Lam, newly-appointed general director of Coteccons. Photo courtesy of the company.

His predecessors Nguyen Sy Cong and Vo Thanh Liem had left Coteccons and become senior leaders at other construction companies. Liem served as CEO of Coteccons for only seven months, from the beginning of August 2020 to March 2021.

Coteccons faced many top-level personnel challenges after some major changes in shareholder structure led to a series of executives leaving the firm, including founder Nguyen Ba Duong. In October 2020, Duong resigned as chairman after more than 17 years of leading the business.

"The company faced a lot of pressure from the public, shareholders and investors and was even disadvantaged when bidding for projects due to the vacancy in the general director’s position. But we decided not to hurry in making an appointment when the management machine was still stable," Coteccons chairman Bolat Duisenov said in a Friday release.

In the first half of the year, Coteccons's net revenue and after-tax profit reached VND5,193 billion ($222.4 million) and VND5.4 billion ($231,200), almost flat and down 18 times compared to the same period last year, respectively.

After six months, Coteccons, listed on the Ho Chi Minh Stock Exchange as CTD, had fulfilled only 34.6% of the year’s revenue plan and 25% of the year's profit target.

The provision for bad debts incurred from 2018 to 2020, which Coteccons called "past burdens," along with current difficulties in the real estate and construction sector exerted great pressure on the company's second-quarter profit margins, according to its financial statement.

The "past burdens" that have persisted for many years, the central bank's tightening of credit for the real estate sector, the corporate bond market being tightened following the cancellation of nine bond issuances by real estate developer Tan Hoang Minh over "untrue information disclosure", supply chain disruptions, geopolitical conflicts, rising input material costs, and a shortage of laborers due to the lingering effects of the pandemic were factors that impacted Coteccons's profits, the statement said.

One of the projects the company has had to make the heaviest provision for is Viet Star Holdings - a member company of property developer Tan Hoang Minh Group. The project had been handed over and become operational since 2019. Despite efforts to recover payments, Coteccons had to make bad debt provisions of VND242 billion ($10.36 million), increasing the accumulated provisions from 2020 to Q2/2022 to VND484 billion ($20.74 million).

On the Ho Chi Minh City Stock Exchange, the CTD share price hit VND63,200 ($2.7) at the closing session on August 5.

Comments (0)
  • Read More
Hai Phong kicks off construction of $38.5 mln industrial center

Hai Phong kicks off construction of $38.5 mln industrial center

Construction commenced Tuesday on the $38.5 million GNP Nam Dinh Vu industrial center project in Nam Dinh Vu Industrial Park, Hai Phong.

Industrial real estate - Wed, September 28, 2022 | 11:23 am GTM+7

Finland firm to supply containerboard technology for Cheng Loong in Vietnam

Finland firm to supply containerboard technology for Cheng Loong in Vietnam

Finnish company Valmet will provide Cheng Loong Binh Duong Paper Co. with key process technology for its new containerboard machine 23 at the company’s Ben Cat mill in Binh Duong province, southern Vietnam.

Companies - Wed, September 28, 2022 | 10:36 am GTM+7

Parliament to discuss amended oil & gas law, anti-money laundering bill

Parliament to discuss amended oil & gas law, anti-money laundering bill

The National Assembly, Vietnam’s parliament, is scheduled to pass seven draft and amended laws at its October-November session, including an amended oil & gas law and one on money laundering.

Politics - Wed, September 28, 2022 | 8:38 am GTM+7

Ministry seeks PM nod for Vietnam’s first cargo airline

Ministry seeks PM nod for Vietnam’s first cargo airline

The Ministry of Transport has asked the Prime Minister for permission to grant a license to the country’s first cargo airline, IPP Air Cargo.

Industries - Tue, September 27, 2022 | 10:45 pm GTM+7

Son Kim to issue $21 mln bonds for HCMC office project purchase

Son Kim to issue $21 mln bonds for HCMC office project purchase

Son Kim Real Estate Investment JSC planned a private placement of bonds worth VND500 billion ($21 million) late this month to purchase The METT office project in Ho Chi Minh City's Thu Thiem new urban area.

Finance - Tue, September 27, 2022 | 10:27 pm GTM+7

Vietnam GDP growth to reach 7.2%, top Southeast Asia: WB

Vietnam GDP growth to reach 7.2%, top Southeast Asia: WB

Vietnam's economic expansion can hit 7.2% this year and 6.7% next year, the highest in Southeast Asia, the World Bank says Tuesday.

Economy - Tue, September 27, 2022 | 9:45 pm GTM+7

Deputy PM’s assistant arrested in pandemic repatriation scandal

Deputy PM’s assistant arrested in pandemic repatriation scandal

Nguyen Quang Linh, assistant to Standing Deputy Prime Minister Pham Binh Minh, was arrested Tuesday for allegedly accepting bribes related to repatriation of Vietnamese citizens during the pandemic crisis.

Politics - Tue, September 27, 2022 | 5:06 pm GTM+7

FPT, VinFast join global chip supply chain

FPT, VinFast join global chip supply chain

Vietnamese giants FPT and VinFast are entering the world's semiconductor industry amid a global shortage of this critical part in automobile and electronics manufacturing.

Industries - Tue, September 27, 2022 | 4:15 pm GTM+7

Becamex, India industry confederation sign cooperation agreement

Becamex, India industry confederation sign cooperation agreement

Becamex IDC and the Confederation of Indian Industry (CII) have signed an agreement on partnership in the areas of IT, medical care, electronics, sustainable development and innovation.

Companies - Tue, September 27, 2022 | 3:27 pm GTM+7

Bamboo Capital to sell luxury properties in foreign markets

Bamboo Capital to sell luxury properties in foreign markets

BCG Land and Helios have signed strategic agreements with 13 top realty consultants to distribute properties of their King Crown Infinity project in both domestic and foreign markets.

Companies - Tue, September 27, 2022 | 3:26 pm GTM+7

Gov’t proposes unique tax incentives for Buon Ma Thuot businesses

Gov’t proposes unique tax incentives for Buon Ma Thuot businesses

The government has proposed to the National Assembly unique tax incentives for businesses in some prioritized sectors in Buon Ma Thuot, the biggest town in Vietnam's Central Highlands.

Industries - Tue, September 27, 2022 | 2:45 pm GTM+7

New US corporate client to buy Boviet Solar’s solar panels

New US corporate client to buy Boviet Solar’s solar panels

U.S. renewable energy developer Vesper Energy has signed a deal to buy 861-megawatt solar modules from Vietnam-headquartered manufacturer Boviet Solar.

Energy - Tue, September 27, 2022 | 11:34 am GTM+7

Public investment disbursement hits $10.3 bln, 46.7% of plan

Public investment disbursement hits $10.3 bln, 46.7% of plan

The disbursement of public investment reached VND243,148 billion ($10.25 billion) in the first nine months of the year, or 46.7% of the government's nine-month plan.

Economy - Tue, September 27, 2022 | 11:12 am GTM+7

Vietnam car buyers charged thousands of dollars above sticker prices

Vietnam car buyers charged thousands of dollars above sticker prices

Several Ford, Hyundai and Toyota dealers in Vietnam are shocking customers by charging them thousands of dollars more than the sticker price, citing cost of accessories.

Companies - Tue, September 27, 2022 | 10:05 am GTM+7

Typhoon Noru forces closure of 5 central Vietnam airports

Typhoon Noru forces closure of 5 central Vietnam airports

Typhoon Noru, one of the biggest to hit Vietnam in 20 years, has forced five airports in the central region to suspend operations for at least 24 hours, starting Tuesday.

Travel - Tue, September 27, 2022 | 9:22 am GTM+7

Standing deputy PM’s assistant faces disciplinary action in pandemic repatriation scam

Standing deputy PM’s assistant faces disciplinary action in pandemic repatriation scam

The Central Inspection Committee has proposed the Party Central Committee’s Secretariat considers disciplining Deputy Foreign Minister To Anh Dung and Nguyen Quang Linh, assistant to the Standing Deputy Prime Minister.

Politics - Mon, September 26, 2022 | 8:06 pm GTM+7