(Construction News) – This is one of the contents discussed by the General Meeting of Shareholders of Construction Corporation No. 1 - Joint Stock Company (CC1) on the morning of May 29. According to the report at the shareholders' meeting, CC1 officially operated under the share model from 01/11/2016, therefore, the profit was over 4.3 billion VND.

At the Congress, delegates focused on contributing ideas to the production and business plan in 2017, especially promoting investment to increase profit margins for businesses and investors.

Promoting the traditional construction industry

Originally a state-owned enterprise specializing in the field of construction, this is identified as a traditional industry associated with the CC1 name throughout the years. Thanks to promoting this advantage, in 2016, the total value of construction reached 7,277 billion VND, accounting for 65% of the corporation's production and business activities total value. In particular, the parent company plays a leading role with a total value of construction output is 4,820 billion VND, accounting for 66% of the total output of the company.

Mr. Le Huu Viet Duc – General Director of CC1 said that he will gradually reduce the construction sector, instead increasing investment in effective projects such as transport infrastructure, wind energy…

Projects that have left CC1's name in the field of construction such as Vinh Tan 4 Thermal Power Plant, Coastal Thermal Power Plant 3 expansion, Nghi Son Oil Refinery, Ho Chi Minh City Children's Hospital. HCM, Hang Bang drainage system renovation project, Da Nang - Quang Ngai Expressway (A1 package), Ho Chi Minh Road La Son - Tuy Loan section... The construction of the projects is on schedule and highly appreciated by partners for the quality of the work.

In addition, in 2016, Parent Company proved its capacity and experience with leading real estate investors such as Vingroup through Vinpearl Dam Gia and Vinhomes Tan Cang projects with a total contract value of more than 480 billion VND. As the results are achieved, The Parent Company will have orientations to return to the construction market in the segment of high-rise projects, houses in residential areas… The cooperation with leading partners in real estate investment and business such as Vingroup is an opportunity for CC1 to approach projects in this field.

Speaking at CC1's 2017 Annual General Meeting of Shareholders, Deputy Minister of Construction – Bui Pham Khanh highly appreciated the results attained by CC1 in the past year. Especially since equitization, the Corporation still focuses on the main business of construction, accounting for a fairly high proportion (over 65%). Therefore, the Deputy Minister suggested that the Corporation continue to maintain and promote construction to become a strong brand in the construction sector of the country.

"Recently, the Government set a GDP growth target of 6.7%. Achieving this requires the construction industry to grow by 10.5%, which is a very heavy task that the Government sets for the industry. Hence, enterprises in the industry must try harder to develop production and business plans accordingly to contribute to the overall growth of the whole industry", Deputy Minister Khanh emphasized.

Reduce construction, increase investment

Mr. Le Huu Viet Duc – General Director of CC1 said that the production and business plan in 2017 is to gradually reduce the proportion of construction and installation and gradually increase other business items, especially investment to create sustainable development. Because according to the general assessment, the investment sector is still slow due to many procedures.

Regarding this matter, Deputy Minister Khanh wishes the Corporation to focus more on investment areas such as participating in investment in the North-South expressway system, renewable energy projects, clean energy because this is a medium and long-term plan, with many potentials for the Corporation to focus on investment research. At the same time, promote the restructuring of the review enterprise because it is associated with the ADB restructuring loan source in accordance with the law.

"In addition, CC1 continues to promote the development of construction and installation brands, transport investment, clean energy, real estate… Proposing the corporation to develop a roadmap to gradually reduce state capital according to regulations, at the same time increase charter capital and plan to issue corporate bonds in phases for each project. Note that the unit develops a strict plan, has a reasonable debt repayment roadmap to ensure successful issuance", Deputy Minister Bui Pham Khanh requested.

At the Meeting, many shareholders also asked the Corporation to accelerate investment in real estate projects such as the Happy City project, Felix Homes social housing project... and energy projects, traffic BOT.

An Hao Bridge connecting to Hiep Hoa isle which had been invested by CC1, was put to use during Reunification Day

According to the 2017 plan, CC1 set a production and business target of only 94% compared to 2016, profit before tax increased by 105% and expected dividend of 7.5%.

To implement, CC1 offers specific solutions for each field such as construction, investment, and other business. Specifically, construction and installation focused on implementing on schedule transition projects from 2016 such as Vinh Tan 4 thermal power plant project, Hang Bang drainage system renovation project - Package K, Da Nang - Quang Ngai Expressway (Package 1A), Hai Phong urban traffic development project (Package CW3A & CW4A),... Continue to strengthen marketing and bidding to be able to receive more new projects in accordance with CC1's competitiveness and a clear payment capital.

In addition, CC1 also focuses on investing in highly effective projects such as continuing to allocate enough capital to implement investment and complete the Dong Nai Bridge Project (Phase 3), construction items of Happy City residential project, Felix Homes low-income housing project, renewable energy project in Binh Thuan, investment project to build a transhipment warehouse in Dong Nai, Coastal road project in Hai Phong city, Long Khanh town bypass project (Dong Nai),...