Coteccons charts course for regional expansion

At its AGM in Ho Chi Minh City on October 20, chairman Bolat Duisenov said international expansion is essential for Coteccons’ sustainable growth and competitiveness. He explained that the move is a strategic, long-term effort rather than a short-term drive for profit.

Bolat Duisenov, chairman of Coteccons, at the AGM in Ho Chi Minh City on October 20

“The company’s 'go global' strategy, initiated about three years ago, has begun to show encouraging results,” said Duisenov.

He revealed that Coteccons has been involved in constructing the VinFast factory in India and has won three projects in Taiwan, with a total initial contract value of approximately VND 1 trillion ($38.4 million).

“The company’s initial approach involves establishing subsidiaries or branches in promising markets, participating in tenders, and assigning skilled engineers and managers from Vietnam to oversee project execution,” he added.

Coteccons is currently focusing on three key markets with high construction demand: the United States, the Middle East, and Taiwan.

As of the end of June, the company had contributed capital to establish five subsidiaries in the US, India, Cambodia, Kazakhstan, and Saudi Arabia.

According to Duisenov, while demand for construction workers in these countries is substantial, Coteccons has declined to engage in simple labour export.

Instead, the company is willing to spend months securing operating licences and bidding for projects as a qualified contractor.

"For example, it took us 15 months to obtain a licence in Taiwan, while business registration procedures in Saudi Arabia took as long as 18 months. Entering new markets requires careful attention to factors such as political fluctuations, local culture, and visa policies for workers," said Duisenov. "We venture into new markets not to seek immediate profits, but to enhance our construction and operational capabilities in line with international standards."

Another benefit of going global, he noted, is that it allows the company to diversify its projects and revenue streams, ensuring sustained growth even when the domestic market faces challenges.

Duisenov underscored that international expansion is essential for long-term growth, though real results will come only with time and sustained effort.

In the 2025 fiscal year (ending June 30), Coteccons reported consolidated revenue of VND24.8 trillion (around $957 million), up 18 per cent on-year, fulfilling 99.5 per cent of its target.

Post-tax profit reached VND456 billion ($17.5 million), marking a 47 per cent increase and exceeding the set goal by 6 per cent.

The AGM approved the business plan for fiscal year 2026, targeting revenue of VND30 trillion ($1.15 billion) and post-tax profit of VND700 billion ($26.9 million).

A key growth driver for this ambitious target is the company’s record-high backlog of VND51.6 trillion ($1.98 billion), bolstered by approximately VND19.3 trillion ($742 million) in newly signed contracts during the first quarter of the new fiscal year.

Alongside the discussions, shareholders approved several key financial and personnel decisions.

A notable resolution was the approval of a 10 per cent cash dividend (equivalent to VND1,000 per share) for the 2024–2025 fiscal year, totalling over VND101.4 billion ($3.9 billion) in payouts.

For capital plans, shareholders endorsed adjustments to last year’s bonus share issuance plan (over 5 million shares) and approved a new bonus issuance at a 20:1 ratio (over 5.3 million shares). Once completed, the company’s charter capital will increase to approximately VND1.14 trillion ($43.8 million).

In addition, Coteccons will allocate 1.1 million treasury shares for its Employee Stock Ownership Plan at a selling price of VND10,000 per share.

Regarding personnel matters, the AGM also approved changes to the Supervisory Board, dismissing and electing two new members for the 2022–2027 term.

Coteccons honoured as one of Ho Chi Minh City’s top firms Coteccons Construction JSC was the only general contractor in the construction industry recognised among Ho Chi Minh City’s Top 50 Outstanding Enterprises and Organisations with Leading Brands and Products.

Coteccons leads Vietnam’s construction sector on Fortune Southeast Asia 500 Coteccons has once again been named among the Fortune Southeast Asia 500, the prestigious annual ranking compiled by global business magazine Fortune that highlights the 500 largest companies in the region.

Coteccons reports robust FY2025 results with strong revenue growth Coteccons Construction JSC has announced its financial results for Q4 and the full fiscal year 2025, reporting on-year increases in both revenue and profit, alongside a significantly expanded backlog and contract wins.