620 Chau Thoi Concrete Corporation (Vietnam)

The subject specializes in manufacturing and assembling precast concrete components (beam, pipe, sewer...), ready-mixed concrete. The materials for production are imported from China (mainly), Thailand, Malaysia. Along with Mekong Delta market, its products are exported to Cambodia with small ratio. The subject also provides transportation services of oversize, overweight concrete products and piling services. According to the Mekong Delta 2023 annual economic report, research results showed that the region's economic recovery was slow, due to the general negative impact of the world economy. The Mekong Delta's economy recovered strongly in 2022 but dropped completely in 2023. In recent years, the GRDP structure of the Mekong Delta has been almost unchanged. According to the subject's Sales Manager, its products and services are mainly provided to projects and partners in industrial parks in the Mekong Delta region, so the economic situation in the region in 2023 went down that was a huge impact on the subject's business situation in general. In addition, price competition (especially transportation costs) has limited the company's access to more distant provinces such as Dong Nai, Binh Duong, etc. He explained that the company's products are quite heavy and bulky so it is difficult to transport long distances and the cost is high, or products such as ready-mixed concrete can only serve projects within the sales range of 30 km radius.In addition, 2023 can be considered the most difficult period in more than 100 years of operation of the cement and concrete industry. Public investment and infrastructure construction projects, in general, were progressing slowly compared to plan, which is also the cause of output congestion in the production and supply chain of construction materials. To reduce difficulties for businesses producing and trading construction materials, the Ministry of Construction requested the Government to propose to the National Assembly to continue extending the implementation of the 2% value-added tax reduction, allowing temporary postponement increase clinker export tax, reducing clinker export tax rate to 0% by the end of 2025. At the same time, the Ministry of Construction requested the Ministry of Transport to direct investors to increase the rate of using concrete viaducts reinforcing steel for highway projects that are in the design stage, localities increase the use of cement concrete roads for the construction of rural, mountainous roads and roads in frequently flooded areas.It can be seen that, in addition to providing the company's products for factory projects in industrial parks, it is also mainly supplied for road and bridge projects. If the enterprise wins the reinforced concrete viaduct packages of the projects proposed according to state policies, the business situation of the enterprise will improve. According to the sales department's prediction, revenue and profit in 2023 may decrease sharply compared to 2022, according to the generally difficult situation.