Vietnam construction giant Coteccons not to allow bad debt hike this year
With bad debts among its debtors doubling to VND2.24 trillion ($88.84 million) in the past three years, Vietnamese construction giant Coteccons says it will not allow either bad debt or provisions thereof to increase this fiscal year.

Senior executives of Vietnam construction giant Conteccons answer shareholders' questions, September 2024. Photo courtesy of the company.
At its online 2024 AGM on Sunday, the company’s management said that they have taken strict control measures for the purpose.
Deputy CEO Tran Ngoc Hai noted that in the 2021-2024 period, despite economic difficulties and a stagnating real estate sector, the company has experienced strong growth in revenue and landed new contracts.
He said the company’s revenue increased from VND9.08 trillion in 2021 to VND21.05 trillion ($834.82 million) in 2024, with receivables ballooning from VND8.16 trillion to VND12.25 trillion ($485.82 million), consistently accounting for about 53-54% of total assets.
Notably, bad debt among its debtors doubled from VND1.13 trillion to VND2.24 trillion ($88.84 million) in the period, with provisions thereof expanding from VND626 billion to VND1.36 trillion ($53.94 million).
Hai acknowledged concerns about bad debt, but reassured that with positive market signals and recovery expected in 2025, Coteccons believed it can continue to improve debt recovery management.
The company has established several mechanisms for debt collection, such as a risk management committee and a debt collection team, he said, adding projects in the "red zone" were being managed weekly and monthly, with concrete actions taken against debtors.
“We are confident that in 2025, we will not increase the provision for bad debt or bad debt levels. With our efforts in debt collection, we expect to recover approximately VND100 billion ($3.96 million) from previously provisioned bad debts. The company is also focusing on a repeat sales strategy and conducting customer and project analyses to minimize risks,” Hai said.
He also announced targets for consolidated revenues of VND25 trillion ($991.47 million) and post-tax profits of VND430 billion ($17.05 million) for fiscal year 2024-2025 (from April 1, 2024 to March 31, 2025), representing year-on-year rises of 19% and 39%, respectively. The company expected to land VND28.62 trillion ($1.14 billion) worth of new contracts, he added.
Hai further shared that revenue for the first quarter of the fiscal year was projected at VND4.7 trillion ($186.4 million), an increase of 15% year-on-year, with new contracts totaling VND8.56 trillion, of which 69% were repeat sales.
The company aimed to maintain growth in civil construction, develop industrial construction strongly, and lay the groundwork for infrastructure construction, while also entering international markets and exploring new business sectors, he added.
To achieve annual growth targets of 20-30%, Coteccons, a leader in the construction of shopping centers and resorts, has to diversify its business areas. In 2025, it aims to maintain its core business while building a foundation for entering new sectors. It also plans to expand international markets and become a global entity.
In the previous fiscal year, the company reported revenues of VND21.05 trillion ($833.5 million), up 31% from the 2022-2023 fiscal year, and a post-tax profit of VND310 billion ($12.27 million), up 4.5 times.
Notably, the backlog carried into this year was valued at VND20 trillion. Based on these results, the board of directors proposed a cash dividend of 10% (VND1,000 or $0.04 per share) after two years without dividend distribution (2021 and 2022).
The company also plans to issue bonus shares at a ratio of 20:1, equivalent to nearly 5 million shares. After the issuance, its charter capital will increase to over VND1.09 trillion ($43 million). Furthermore, the board has proposed to sell all 3.7 million treasury shares to employees at VND10,000 ($0.4) apiece.
In response to shareholders’ questions, chairman Bolat Duisenov said Coteccons has adopted a conservative approach and was confident in the company’s financial health. Long-term debt has been paid on schedule since 2021, maintaining a good credit rating. In the short term, there are no plans to issue bonds, as the financial resources accumulated are sufficient to meet short-term objectives.
Duisenov also said that about three years ago, Coteccons began to focus on industrial construction. As a result, it has become a leading entity in factory construction in Vietnam. The company was also taking its first steps in the infrastructure sector and international markets, with results expected to show in about three years.
Coteccons was committed to diversifying revenue sources and business segments to ensure sustainable development, he stressed.
Coteccons’s CTD ticker closed Friday on the Ho Chi Minh Stock Exchange (HoSE) at VND63,400 ($2.51) apiece.
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