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VIETNAM CONSTRUCTION AND INSTALLATION INDUSTRY

REPORT Q2/2018

1

Abbreviations 3

Executive summary 4

1. Business environment 6

1.1 Macroeconomic situation 6

1.2 Legal framework 12

1.3 Impact of trade agreements 20

2. Global market 23

3. Vietnam market 35

3.1 Definition and classification 35

3.2 Value chain of the industry 37

3.3 Technology 39

3.3.1 Technology in Electrical installation 40

3.3.2Technology in construction and installation of water

supply and drainage systems42

3.4Market size and characteristics of Vietnam

construction and installation market43

3.5 Input factors 48

3.6 Outputs 55

Contents

3.6.1 Electrical installation 56

3.6.2Construction and installation of water supply and

drainage system72

3.6.3 Installation of heating and air-conditioning systems 84

3.6.4 Finishing construction works 86

3.6.5 Other dedicated construction 89

4. Industry risk 92

4.1 Risk analysis 92

4.2 SWOT analysis 95

5. Outlook and forecast 97

5.1 Driving forces of industry development 97

5.2 Industry planning and outlook 102

5.3 Forecast 107

6. Enterprise analysis 110

6.1 Enterprise introduction 110

6.2 Financial analysis 122

7. Appendix of financial statements 131

2

3

MPI Ministry of Planning and Investment MOIT Ministry of Industry and Trade

BMI Business Monitor International SBV State Bank of Vietnam

EVN Vietnam Electricity Corporation VEA Vietnam Environment Administration

ENR Engineering News-Record VIRAC Vietnam Industry Research And Consultancy JSC

FIA Foreign Investment Agency VWSA Vietnam Water Supply and Sewerage Association

GDVC General Department of Vietnam Customs WHO World Health Organization

GSO General Statistics Office WSA World Steel Association

MOC Ministry of Construction

Abbreviations

4

Executive summary

Central America and Asia are the two regions

with the highest proportion of investment

capital for construction of transport

infrastructure in 2017.

On 9/16/2015, the Ministry of Industry and

Trade issued Circular 30/2015/TT-BCT

On 9/29/2017, the Ministry of Construction

issued Circular No. 10/2017/TT-BXD

Increased demand especially in low-end urban

areas has set the goal for the expansion of

power transmission networks to these areas.

Content is intentionally removed for demo purpose

5

Executive summary

According to a report by the Ministry of

Natural Resources and Environment (VEA), the

demand for clean water in 2015 in grade III

urban areas and above is 120

liters/person/day.

The civil engineering industry faces such

following risks:

Geographic location with many rivers and

streams makes hydropower be a major source

of electricity in the country's total electricity

supply.

In 2016, the top construction companies have

impressive growth.


1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

1.3 Impact of trade agreements

Contents

6



Source: VIRAC, GSO

7

Source: VIRAC, GSO

GDP in 2017 was estimated to increase by 6.81% compared to 2016, of which

increasing by 5.15% in Q1; 6.28% in Q2; 7.46% in Q3; 7.65% in Q4.

Construction’s distribution to GDP, 2013 - 2021f

GDP growth, 2011 - 2017


The proportion of Construction industry contribution to GDP

continuously increased between 2013 and 2016; however, the

growth rate was low

8



Source: VIRAC, SBV

Source: VIRAC, GSO

According to statistics, Vietnam has about 40% of road traffic in the

transport system which is of low and very low quality.

VND/USD exchange rate, 2013-2017

Value of construction and infrastructure

million USD




9

Source: VIRAC, FIA

FDI, 2015-2017billion USD

In 2017, FDI experienced a sharp growth

In 2017, foreign investors have invested in 19 industries

Source: VIRAC, FIA

FDI attraction by sector, 2017


Source: VIRAC, GSO

10



Vietnam's population has grown rapidly over the last few

decades..

Million people

The rapid increase in urbanization also entails the need to improve the

quality of infrastructure and public transport, which is one of the factors

contributing to the development of the civil engineering industry.

Urbanization rate, 2010 - 2017

Source: VIRAC, GSOPopulation pyramid, 2016


11



Source: VIRAC, MPI

As the demand for capital for development grows, national budgets for this purpose are limited, so the attraction and efficient use of ODA is becoming

increasingly urgent.

Situation of ODA attraction and disbursement, 2010-2018f




1.2 Legal framework


Contents

12


1.2. Legal framework

13

On April 15, 2010, the Ministry of Industry and Trade issued Circular No. 14/2010/TT-BCT




14

The method of determining the total cost of capital:




15

The Ministry of Industry and Trade issued Circular No. 03/2012/TT-BCT dated January 19, 2012 to amend and supplement some articles of Circular No.

14/2010/TT-BCT on the method of preparation, elaboration, promulgation and management of electricity transmission prices.




16

Decree No. 64/2012/ND-CP on construction permit:




17

On 9/16/2015, the Ministry of Industry and Trade issued Circular No. 30/2015/TT-BCT stipulating the method of determining the level of expenses for

elaboration, appraisal, announcement, adjustment and management of electricity development planning for provincial-level People's Committees and medium

and small-sized hydropower development plannings.




18

New legal framework for PPP:




19

On 9/20/2017, the Ministry of Construction issued Decision No. 964/QĐ-BXD on conversion investment costs in construction,




20

On 9/29/2017, the Ministry of Construction issued Circular No. 10/2017/TT-BXD on national technical standards on products, goods, construction

materials and guidance on technical regulation conformity certification and conformity announcement.




21

On 2/6/2018, the Ministry of Construction issued Circular No. 02/2018/TT-BXD on environment protection regulations in construction and system of

reports on environment protection in Construction industry




22




1.2 Legal framework


Contents

23


1.3. Impact of trade agreements

24

1995 1998

2000

2002

2006

2007

2008

2009

2011 2015

Vietnam's integration process, 1995 - present

By the end of the 1st quarter ò 2018, Vietnam has signed, implemented, and has been negotiating a total of 17 free trade agreements (FTAs). Accession to

international trade agreements brings both opportunities and challenges for domestic firms.

2016



1.3. Impact of trade agreements

25

Formation of ASEAN Economic Community (AEC):

Vietnam’s parcitipation in total 15 free trade agreements (FTA),

RCEP agreement (ASEAN+6):


Contents

26

2. Global market

27

Source: VIRAC, PwC

2. Global market

Proportion of civil engineering investment in each region by type of works, 2017e


28

2. Global market

billion USD

Source: VIRAC, Preqin

Source: VIRAC, Preqin Source: VIRAC, Preqin

Quantities and value of investment in new energy projects, 2009-2016

Share of new energy projects by region, 2009-2016Share of new energy projects by type,2009-2016


29

2. Global market

Input factors

In 2016, steel production in almost all countries decreased compared to

2015.

Source: VIRAC, WSA

Million tons

Million tons

Source: VIRAC, WSA

World's top 10 largest steel companies, 2016

World's top 10 largest steel producing countries, 2016


30

2. Global market

Input factors

Million tons

China is the world leader in cement production, accounting for more than 50%

of global cement production. Followed by India, USA, etc.

Million tons

Source: Global Cement

Source: Global CementWorld's top 10 largest cement companies, 2015

World's top 10 largest cement producing countries, 2017


31

billion USD

billion USD

Source: VIRAC, ENR

Source: VIRAC, ENR

2. Global market

Typical enterprises

Top 10 international bidders having the largest turnover, 2015

Top 10 domestic bidders having the largest turnover, 2015


32

2. Global market

Typical projects

No Project Location Contractor Completion year Capacity

(MW)

Typical electrical installation projects

Source: VIRAC

No Project Location Contractor Completion

year

Capacity

Typical water-main and sewerage installation projects


33

Source: VIRAC, ENR

No Company CountryTotal revenue

(billion USD)

International revenue

(billion USD)

World’s top 10 biggest building contractors, 2016

2. Global market

Typical enterprises


34

2. Global market

Top 10 countries with the best infrastructure in the world in 2016 – World Economic Forum

Rank


35

2. Global market


Rank


36

2. Global market


Rank


37

2. Global market


Rank


3. Vietnam market

3.1 Definition and classification

3.2 Technology

3.3 Value chain of the industry

3.4Market size and characteristics of Vietnam construction and

installation market

3.5 Input factors

3.6 Output of construction and installation industry

Contents

38

39

3. Vietnam market


Construction and installation works

Bidding on construction and installation works

Classification:


Contents

40

3. Vietnam market



3.3 Technology


installation market

3.5 Input factors


41

3. Vietnam market


Value chain of construction and installation industry

Source: VIRAC


Contents

42

3. Vietnam market



3.3 Technology


installation market

3.5 Input factors


43

3. Vietnam market

3.3 Technology - 3.3.1 Technology in Electrical installation

Types of substations used in electrical installtions


44

3. Vietnam market

3.3 Technology - 3.3.1 Technology in Electrical installation

MACHINES USED IN ELECTRICAL INSTALLTIONS

Source: VIRAC


45

3. Vietnam market

3.2 Technology - 3.3.2 Technology in Construction and installation of water supply and drainage system

Construction of waste water drainage system using vacuum technology Advantages:

Source: VIRAC


46

3. Vietnam market

3.2 Technology - 3.3.2 Technology in Construction and installation of water supply and drainage system – Water waste treatment technology

1. Aerotank

2. UASB Tank Content is intentionally removed for demo purpose

47

3. Vietnam market


3. AAO treatment technology

Water waste treatment technology AAO


48

3. Vietnam market


4. Water waste treatment technology AO


49

3. Vietnam market


5. Water waste treatment technology MBBR

Water waste treatment technology MBBR


50

3. Vietnam market



51

3. Vietnam market


6. Membrane Bioreactor Technology MBR

Water waste treatment technology MBRMembrane in Water waste treatment technology MBR


52

3. Vietnam market


Features MBR (Membrane Bio-Reactor) MBBR (Moving Bed Biofilm Reactor)

Comparison between MBR and MBBR


53

3. Vietnam market


7. Water waste treatment technology SBR (Sequencing batch reactor)


54

3. Vietnam market


8. Water waste treatment technology IFAS

Water waste treatment technology IFASWater waste treatment technology IFAS


55

3. Vietnam market


Urban water waste treatment plants and technology used

No. Plants City/ Province Capacity (m³/day) Technology used Status


56

3. Vietnam market





57

3. Vietnam market





58

3. Vietnam market





59

3. Vietnam market





60

3. Vietnam market





Contents

61

3. Vietnam market



3.3 Technology


installation market

3.5 Input factors


62

3. Vietnam market

3.4 Market size and characteristics of Vietnam construction and installation market

Source: VIRAC, GSO Source: VIRAC, GSO

Along with the general economic development, the requirement of improving the quality of infrastructure as well as the number of enterprises

operating in the construction and installation industry have also increased rapidly over the past years.

Number of employees in the industry, 2010-2016Number of enterprises in the industry, 2010-2016


63

Source: VIRAC, GSO

Source: VIRAC, GSO

3. Vietnam market


The Red River Delta and the South East are two regions having the fastest

growth in number of companies in the construction and installation industry.

Number of enterprises by region, 2011-2016

Enterprise distribution by region, 2016


64

Source: VIRAC, GSO

billion VND

Source: VIRAC, GSO

billion VND

3. Vietnam market


Total investment in construction and installation industry, 2010-2016

Fixed assets invested in construction and installation industry, 2010-

2016


65

Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VND

3. Vietnam market


Sales of construction and installation industry, 2010-2016

Profit of construction and installation industry, 2010-2016


Contents

66

3. Vietnam market



3.3 Technology


installation market

3.5 Input factors


67

3. Vietnam market

3.5 Input factors – Materials

Steel

Cement

Source: VIRAC, Department of price management

Construction steel prices, 8M/2017


68

3. Vietnam market

3.5 Input factors – Materials

Construction machinery


69

3. Vietnam market

3.5 Input factors – Machinery

Source: VIRAC, GDVCSource: VIRAC, GDVC

Source: VIRAC, GDVC Source: VIRAC, GDVC

Import share of construction machines by manufacturers, 2017e

Import share of construction machines by country, 2017e Import share of new construction machines by manufacturers, 2017e

Import share of construction machines by type, 2017e


70

3. Vietnam market

3.5 Input factors – Labour

Although Vietnam's labor productivity has improved significantly in 2011, it is still low compared to that in other countries in the region.

Source: VIRAC, GSO

Labor productivity in Vietnam, 2006-2016e


71

3. Vietnam market


Labor productivity of each profession in Vietnam, 2015

Labor productivity has not really changed much, still depends on resources, cheap labor. Source: VIRAC, GSO


72

3. Vietnam market


Minimum wage by country. 2014 - 2016While many countries tend to reduce the minimum wage, Vietnam,

Indonesia and China are the three countries having the minimum wage

increase. Remarkably, Vietnam is the country with the highest wage

increase.

Source: VIRAC, GSO

USD


Contents

73

3. Vietnam market



3.3 Technology


installation market

3.5 Input factors


74

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Electricity sector overview

At present, the location of power plants is heavily dependent on the

distribution of natural resources, so there is a clear distinction among

regions.

In the future, coal-fired plants will be prioritized.

Distribution of main power plants

Source: VIRAC, EVN


75

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Electricity sector overview – Production

Source: VIRAC, EVN, GSO, MOIT* Excluding electricity imported from Laos

On domestic power generation:

Total electricity supply, 2010 – 3M/2018eMillion kWh

Source: VIRAC, EVN, MOIT

Commercial electricity, 2012 – 3M/2018e


76

The main sources of electricity generation are Hydropower, Gas, and Coal-

fired, accounting for 93.78% of total power generation capacity in 3 first

months of 2018.

Coal-fired power share has increased dramatically due to a number of

major reasons:

Renewable energy has not been widely used for power development,

Production structure of electricity by source of materials, 2012 – 3M/2018e

Source: VIRAC, EVN, MOIT

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Electricity sector overview – Production


77

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Electricity sector overview – Consumption

kWh

Source: VIRAC, MOIT

Source: VIRAC, Worldbank

Electricity consumption per capita in Vietnam, 2000-2017e

Electricity consumption structure, Q1/2018


78

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Electricity sector overview

Source: VIRAC, EVN

The installed capacity of electric generator both increased rapidly and gradually reduced the dependence on imports.

Power plant installed capacity in Vietnam and the CAGR in each period


79

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Construction and installation process of power transmission line

Electric

field

strength

E (kV/m)

Time

allowed

(minute)

Source: VIRAC, National Electricity Technical Regulation


80

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Construction and installation process of power transmission line

Construction and installation process of power transmission line

Source: VIRAC, National Electricity Technical Regulation


81

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Infrastructure for power tranmission

Source: VIRAC, EVN

Length of transmission and distribution grid, 2011 - 2017

(*) Estimated by VIRAC


Unit 2012 2013 2014 2015 2016 2017

82

No Project Length

(km)

Capacity

(MVA)

3. Vietnam market


Source: VIRAC, EVN

Typical national grid upgrading projects put into use in 2017


83

No Project Length

(km)

Capacity

(MVA)

3. Vietnam market


Source: VIRAC, EVN

Typical national grid upgrading projects which are expected to put into use in 2018


84

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Power infrastructure projects

No Project Capacity Owner No Project Capacity Owner

Power infrastructure projects, 2016-2020

Source: VIRAC, EVN


85

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Market size of electrical installation sector

billion VND

Source: VIRAC, GSO

Source: VIRAC, GSO

Investment capital in Electrical installation, 2010-2016

Number of employees in Electrical installation, 2010-2016


86

3. Vietnam market


Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VNDProfit of electrical installation sector, 2010-2016

Sales of electrical installation sector, 2010-2016


87

3. Vietnam market



No. Enterprise Revenue (2016)

Top enterprises in electrical installation sector having the largest revenue in 2016

88

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Investment in electricity grids

billion VND

Source: VIRAC, EVN

Infrastructure for power tranmission still has lots of limitations, Total investment in power grid is estimated at VND 824,000 billion from 2016-2030.

Total investment capital in electricity grids, 2011-2030f


89

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.1 Electrical installation – Typical enterprises

Top enterprises in electrical installation sector having the largest revenue in 2016

No Enterprise Revenue 2016 (VND) No Enterprise Revenue 2016 (VND)


90

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Construction process of water

supply and drainage pipeline

Construction process of water supply and drainage pipeline


91

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Demand for clean water consumption

Litter/person/day

Source: VIRAC, VEA

Source: VIRAC, VEA

Demand for clean water consumption in Vietnam, 2015-2025f

Proportion of clean water supply in Vietnam, 2015-

2025f


92

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Status of management, development of

water supply and drainage

On 12/22/2016, the Prime Minister issued Decision No. 2502/QĐ-TTg adjusting the development direction of urban water supply and industrial parks of

Vietnam until 2025 with a vision to 2050.


93

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Current status of wastewater management

Current status of wastewater management in Vietnam, 2013

Source: VIRAC, Worldbank


94

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Current status of wastewater management

Most wastewater treatment plants meet all the standards, whether they receive watsewater from general or private drainage system.

Source: VIRAC, World Bank

Capacity of some wastewater treatment plants, 2013


95

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Typical projects

Name of plant Capacity

(m³/ngđ)

Techn

ology

Capital source Name of plant Capacity

(m³/ngđ)

Technolo

gy

Capital

source

Typical wastewater treatment plants completed in the period 2013-2016

Source: VIRAC, VWSA


96

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Market size of construction and

installation of water supply and drainage system

billion VND

Source: VIRAC, GSO

Source: VIRAC, GSO

Investment capital in this sector has been continuously fluctuated in

recent years.

Investment capital, 2010-2016

Number of employees, 2010-2016


97

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Market size of construction and

installation of water supply and drainage system

Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VND

Profit of water supply and drainage system sector, 2010-2016

Sales of water supply and drainage system sector, 2010-2016


98

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Targets

Development targets of wastewater treatment and drainage

Source: VIRAC, WHO, VEA*According to Decision 2502/QD-TTg on adjusting the development orientation of urban water supply and industrial parks of Vietnam up to 2025 with a vision to 2050


99

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.2 Construction and installation of water supply and drainage system – Investment in construction of water

supply and drainage system

Project Province/city Review point Project Province/city Review point

According to the Priority and Grading Criteria based on Urban Water Supply and Urban Development Orientation in Vietnam by 2025, with a vision of

2050 (adjusted in April 2016), 51 water supply and drainage projects, which have been invested in the period 2016-2030 have the following rating

points


100

3. Vietnam market



Project Province/city Review point Project Province/city Review point


101

3. Vietnam market



Source: VIRAC, VWSA

Source: VIRAC, VWSA

Capital source for projects on water supply and

drainage,

2016-2020

ODA structure mobilized for projects on water

supply and drainage, 2016-2020


102

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.3 Installation of heating and air conditioning systems– Market size

billion

VND

Source: VIRAC, GSO

Source: VIRAC, GSO

Investment in installation of heating and air

conditioning systems, 2010-2016

Number of employees in installation of heating and

air conditioning systems, 2010-2016


103

3. Vietnam market


Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VND

Sales of installation of heating and air conditioning

systems, 2010-2016

Profit of installation of heating and air conditioning

systems, 2010-2016


104


No. Enterprise Revenue (2016)

Top enterprises that have the highest revenue in sector of installation of

heating and air conditioning systems, 2016

3. Vietnam market


105

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.4 Finishing construction works – Market size

Source: VIRAC, GSO

Source: VIRAC, GSO

Number of enterprises and employees in finishing

construction works, 2010 - 2016

Enterprise distribution in finishing construction

works by region, 2010 - 2016


106

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.4 Finishing construction works – Market size

Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VND

Sales and profit of finishing construction works,

2010 - 2016

Investment capital and fixed assets of finishing

construction works, 2010 - 2016


107

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.4 Finishing construction works

Top 10 enterprises in construction works finishing sector having the largest revenue in 2016

Source: VIRAC


No. Enterprise Revenue in 2016

(VND)

108

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.5 Other dedicated construction – Market size

Other dedicated construction is the construction of special works

to meet the own purposes of using and exploiting.

Source: VIRAC, GSO

Source: VIRAC, GSO

Number of enterprises and employees in other

dedicated construction sector, 2010 - 2016

Enterprise distribution in other dedicated

construction sector by region, 2010 - 2016


109

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.5 Other dedicated construction – Market size

Source: VIRAC, GSO

Source: VIRAC, GSO

billion VND

billion VND

Revenue and profit of other dedicated construction

sector, 2010 - 2016

Investment capital and fixed assets of other

dedicated construction sector, 2010 - 2016.


110

3. Vietnam market

3.6 Output of construction and installation industry – 3.6.5 Other dedicated construction

Top 10 enterprises in other dedicated construction sector having the largest revenue in 2016

Source: VIRAC


No. Enterprise Revenue in 2016

(VND)

Contents

111

4. Industry risk

4.1 Risk analysis

4.2 SWOT analysis

112

4. Industry risk

4.1 Risk analysis


113

4. Industry risk

4.1 Risk analysis


Contents

114

4. Industry risk

4.1 Risk analysis

4.2 SWOT analysis

115

4. Industry risk

4.2 SWOT analysis

Strengths

Weaknesses

Opportunities

Threats


Contents

116

5. Outlook and forecast

5.1 Driving forces of industry development

5.2 Industry planning and outlook

5.3 Forecast

117


5.1 Driving forces of industry development – Geographic location

Geographic location with many rivers and streams makes hydropower be

a major source of electricity in the country's total electricity supply.

Vietnam

Vietnam


118


5.1 Driving forces of industry development – Geographic location

Population distribution in Vietnam

Hà Nội

Hoàng Sa

Trường Sa

Nam Định

Đồng NaiHồ Chí Minh

An Giang

Phú Yên

Khánh Hòa

Bắc Ninh

Tiền Giang

Đồng Tháp

Cà Mau

Hải Phòng

Bình Định

Bình Phước

Bến Tre

Thanh Hóa

Cần Thơ

Hưng Yên


119

Largest urban area of Vietnam

Estimated in 2017

Rank City Under

Population

(Million

people)


5.1 Driving forces of industry development – Advantages from infrastructure and population


120

The cost of capital investment for infrastructure development is raised

from public spending and foreign capital.

Structure of investment costs for infrastructure development in GDP, 1995 - 2013

Source: VIRAC, MOT


5.1 Driving forces of industry development – Infrastructure


Contents

121




5.3 Forecast

122

Decree No. 44/2015/ND-CP details some contents of approval on the master plan for development of construction materials in Vietnam up to 2020 and

orientation to 2030.




123



Decision No. 838/QD-BXD of the Ministry of Construction approving the plan for human resources development in the construction industry in the

period 2011-2020 as follows:


124



Decision No. 428/QD-TTg on approving the adjustment of the National Electricity Development Plan in the period 2011-2020 with a vision to 2030


125

Category Unit2011 -

2015

2016 -

2020

2021 -

2025

2026 -

2030



Source: VIRAC, EVN


126

• On October 29, 2014, the Prime Ministry issued the Decision No. 1942/QĐ – TTg on approving Planning of drainage systems and water waste in

residential areas and industrial areas in Dong Nai River basin until 2030




127

Capacity (m³/day)




128




129

Capacity (m³/day)




130

• On January 25, 2013, the Prime Ministry issued the Decision No. 228/QĐ – TTg on approving Planning of drainage systems and water waste in

residential areas and industrial areas in Cau River basin until 2030




131




Contents

132




5.3 Forecast

133


5.3 Forecast

No Product type UnitDomestic demand

In 2015 In 2020


134


5.3 Forecast

billion VND

Source: VIRAC, MOC

Value of construction and installation industry, 2014-2025f


Contents

135

6. Enterprise analysis

6.1 Enterprise introduction

6.2 Financial analysis

136


6.1. Enterprise introduction

Company nameTotal assets 2016

(billion VND)Revenue 2016 (billion VND) Revenue 2015 (billion VND)

Truong Son Construction Corporation

Fecon Joint Stock Company

Trung Nam Construction and Engineering Corporation

Thang Long Elevator Equipment Group Company Limited

Mechanical and Electrical Construction Hawee Joint Stock

Company

Binh Duong Water Environment Joint Stock Company

Sai Gon Traffic Construction Joint Stock Company

Power Construction Limited Company No. 2

Seaprodex Refrigeration Industry Corporation

Shin-wha Construction Company Limited

Top enterprises with largest revenue in construction and installation industry, 2016

Source: VIRAC


137



Truong Son Construction Corporation


138



FECON Joint Stock Company


139



Trung Nam Construction and Engineering Corporation


140



Thang Long Elevator Equipment Group Company Limited


141



Mechanical and Electrical Construction Hawee Joint Stock Company


142



Binh Duong Water Environment Joint Stock Company


143



Sai Gon Traffic Construction Joint Stock Company


144



Power Construction Limited Company No. 2


145



Seaprodex Refrigeration Industry Corporation


146



Shin-wha Construction Company Limited


Contents

147


6.1 Enterprise introduction

6.2 Financial analysis

148


6.2. Financial analysis

Gross profit margin, 2015 - 2016


149




150



Source: VIRAC

Source: VIRAC

Administrative expenses/Net revenue ratio

Selling expenses/Net revenue ratio


151



Source: VIRAC

Self-financing rate, 2015 - 2016


152



Source: VIRAC

Current ratio, 2015 - 2016


153



Source: VIRAC

Fixed asset turnover, 2016


154



Source: VIRAC

Day

Days of sales outstanding, 2016


155



Source: VIRAC

Profit margin, 2016


156

7. Appendix of financial statements

Contents

157


7.1. Truong Son Construction Corporation

BALANCE SHEET

Unit: VND 2015 2016

I Current assets

1 Cash and cash equivalents

2 Short-term financial investments

3 Short-term receivables

Customer receivables

5 Inventory

II Long-term assets

1 Long-term receivables

Long-term receivables from customers

2 Fixed assets

Tangible fixed assets

Intangible fixed assets

5 Commercial advantages

III Total assets

I Liabilities

1 Short-term liabilities

Short-term debt and loan

Payments to suppliers

Taxes and amounts payable to the state

2 Long-term liabilities

Long-term debt and loan

II Owner's equity

III Total assets and liabilities

INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue

2 Cost of goods sold

3 Gross profit

4 Financial income

5 Financial expenses

Interest expenses

6 Selling expenses

7 Administrative expenses

8 Net profit from business activities

9 Pre-tax profit

10 Current corporate income tax

11 Deferred corporate income tax

12 Profit after tax


158


7.2. Fecon Joint Stock Company

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


159


7.3. Trung Nam Construction and Engineering Corporation

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


160


7.4. Thang Long Elevator Equipment Group Company Limited

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


161


7.5. Mechanical and Electrical Construction Hawee Joint Stock Company

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


162


7.6. Binh Duong Water Environment Joint Stock Company

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


163


7.7. Sai Gon Traffic Construction Joint Stock Company

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


164


7.8. Power Construction Limited Company No. 2

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


165


7.9. Seaprodex Refrigeration Industry Corporation

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


166


7.10. Shinwa Construction Company Limited

BALANCE SHEET

Unit: VND 2015 2016

I Current assets





5 Inventory

II Long-term assets



2 Fixed assets




III Total assets

I Liabilities







II Owner's equity


INCOME STATEMENT

Unit: VND 2015 2016

1 Net revenue


3 Gross profit

4 Financial income


Interest expenses

6 Selling expenses



9 Pre-tax profit



12 Profit after tax


REPORT DISCLAIMER

REPORT DISCLAIMER

This document has been prepared in good faith on the basis of information available at the date of publication without any

independent verification. VIRAC has produced this report for private circulation to professional clients only. All information and

statistical data herein have been obtained from sources we believe to be reliable and made to ensure the accuracy of the contents of

the pages of the report at the time of preparation. Such information has not been independently verified and VIRAC makes no

representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use.

You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it

outside your organisation, or place it on a website for public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,)

6th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

http://virac.com.vn/

mailto:[email protected]

Thank you !

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