Under a resolution passed by the board, Vo Thanh Liem, a deputy general director, was appointed acting general director of Coteccons from August 6 this year, the firm said in a release following its recent shareholder meeting.
Advancing to global playground
Coteccons has been holding a dominating position in the Vietnamese construction industry for many years, reflected by the number of high-profile, large-scale projects involving immense technical, capacity and safety requirements like Landmark 81, the Vinfast factory, Viettel headquarters, South Hoi An Casino, Ho Tram Strip, Thao Dien Masteri, Goldview, City Garden and Diamond Island.
According to ranking and research firm Vietnam Report, Coteccons is the number one private enterprise in the local construction industry, and ranks among the best 50 listed companies locally as announced by Forbes for seven consecutive years.
The firm recently reported winning five new projects with a total contract value of nearly VND3.2 trillion ($138 million).
For the next five to 10 years, Coteccons’s vision is taking part in international projects and increase its value “to be a pride of Vietnam”.
With this expectation in mind, the company’s leaders said its operating platform needs to be innovated to bring in additional quality resources.
Therefore, the board of directors decided to cooperate with leading global corporations and consultants on strategy, human resources, engineering and finance to strengthen its corporate governance system, standardizing procedures according to international policies to prepare Coteccons for the regional and international playground.
Vo Thanh Liem, acting general director of Coteccons.
Building new standards
With the support of its new board of directors, Vo Thanh Liem – acting general director, together with the management board will be the inheritors of traditional values, promote new standards, and continue to build Coteccons into a powerful construction empire, the release said.
The immediate tasks approved by the board of directors include building a new business strategy, consulting with world experts in order to build the company into a high value national brand, with outstanding capacity to meet international standards.
The subcommittees under the board of directors have been restructured and upgraded to become specialized, acting as advisors and decision-makers within authorized capabilities, ensure business stability and compliance with strategy execution as well as apply the best practices for every scenario.
Each subcommittee would act as a bridge to ensure continuity between governance and operations at Coteccons. Subcommittee members will include those from the board of directors, board of management and leading external experts.
Nominated experts include Wayne Harris – a construction specialist with extensive experience in safety and operations management, who has been working for Coteccons for three years and over 30 years in different markets. Moreover, David Evans, a senior strategy and management consultant in the construction field, has a lot of experience in managing contractors and consulting on complex projects internationally.
The company’s organizational structure will be finalized to implement its new business strategy. Furthermore, the board of directors agreed to recognize each other’s opinions, outlooks and perspectives. Opinions and ideas of all members will be heard and considered in a culture of inclusion with utmost respect according to corporate governance best practices to ensure the best interests of Coteccons.
Business results key to Coteccons success
Revenue for the first six months of 2020 reached VND7.53 trillion ($324 million) and profit after tax VND281 billion ($12.1 million).
The target for 2020 is VND16 trillion ($689 million) in revenue and VND580-600 billion ($25.8 million) in profit after tax.
The board decided to choose E&Y as its international auditor.
It approved the plan to pay 30 percent of par value dividends to shareholders (VND3,000/share), expected to be implemented in August 2020.
Additionally, the board of directors determined that the Covid-19 pandemic is both a challenge and an opportunity to improve.
Vo Thanh Liem has been working with Coteccons since 2002 and has held the position of deputy general director since 2017. Liem has extensive experience in management and administration and has major responsibilities at the company in key areas like operating construction blocks, and promoting and expanding relationships with major investors both locally and abroad.
Liem along with the management board and board of directors will continue to promote the power of Coteccons as well as implement new improvements with the support of leading experts.
The decision to choose Liem as acting general director as well as the appointment of other personnel and experts from both new and existing resources at the firm demonstrate the commitment of the board and shareholders to maintain its heritage and cultural identity in addition to the commitment to innovation with an open mind, toward positive changes for Coteccons.