Coteccons diversifies as competition in construction hits profit margins

At its annual general meeting on Monday Bolat Duisenov, its chairman, said: "Ninety nine percent of the company's business is closely related to civil and industrial construction. As a result, our business depends a lot on ups and downs in the real estate market. [Such] dependence will slow down our growth."

Phan Duy Huu Quoc, deputy general director, too warned that dependence on a single business field could cost Cotecons its industry leadership.

He pointed to the fierce competition in civil and industrial construction, which has dragged profit margins down to an undesirable 3-5 percent.

Besides, the management saw enormous opportunities for the company outside the construction industry, he said. "We have worked with customers who have already demanded our diversification."

Coteccons set sales and after-tax profits of VND17.4 trillion and VND340 billion for 2021, representing increases of 20 percent and 2 percent from last year.