Newtecons Investment Construction Joint Stock Company (Vietnam)

The subject - Newtecons specializes in designing and constructing real estate projects. Its projects spread from Northern to Southern regions (including offices, apartments, hotels, resorts, factories, hospitals, educational facilities…). Over the development process, Newtecons has served as a general contractor for many projects like Cadivi Tower, One Central HCM, T&T City Millennia, Flora Panorama, Masteri Waterfront, Lumiere Riverside, South Hoi An Casino Resort, Fulbright University, etc.At present, Newtecons along with Coteccons and Ricons are known as top companies in the construction field. Formerly, the subject and Ricons were member companies in Coteccons's ecosystem. Nevertheless, because of interest conflicts with a group of foreign investors, Mr. Nguyen Ba Duong and Mr. Nguyen Sy Cong (former top leaders of Coteccons) resigned from their management positions. Afterward, Mr. Nguyen Ba Duong started to build his ecosystem. Since that time, Newtecons and Ricons have operated more independently and become direct competitors of Coteccons in this field.Looking back at 2022, the real estate industry encountered difficulties after a series of incidents related to corporate bonds, impeding real estate investors from approaching investment capital. In addition, under the influence of global economic downturn, the demand for investment and home buying became very low. These determinants limited the implementation of new real estate projects and real estate investors were forced to cut down thousands of jobs. In addition, real estate investors could not arrange cash sources to make payments on time, leading many construction companies (considered as main partners) to make provisions for bad debts. About business results, Newtecons' net sales exceeded the milestone of VND 11,000 billion. However, the price of construction materials continued to climb and created cost burdens for construction contractors. Thus, the subject's operating income did not show an improvement in that year.In 2023, many real estate investors suffered from difficulties and the wave of layoffs lasted, especially in the first half of this year. The global economic recession has still affected consumer sentiment when they are not ready to pour money into real estate products. Policies to remove difficulties for the real estate market have not been clearly effective in promoting its recovery. The domestic and world economic situation has an unfavorable impact on the real estate market and market confidence has not been fully restored. In general, the real estate market needs time to recover in both supply and demand.Newtecons expects a growth rate of more than 10% in net sales compared to 2022. Even though the market conditions are not too favorable, Newtecons could take advantage of undertaking Long Thanh airport project when joining in Vietur Consortium. This project is expected to increase the company's growth momentum in the upcoming years.