Fecon Corporation on Thursday signed a strategic cooperation agreement with Japans Raito Kogyo Company Limited. — VNS Photo

Fecon Corporation on Thursday signed a strategic cooperation agreement with Japans Raito Kogyo Company Limited.

Accordingly, Raito Kogyo Company, one of the largest Japanese geotechnical contractors, will invest in 19 per cent of Fecon, which operates in foundation engineering and underground construction, and 36 per cent of Fecons affiliate Fecon Underground Construction Joint Stock Company.

The two companies would cooperate in developing transport infrastructure projects, urban railway projects and underground drainage system projects in Ha Noi and HCM City as well as land-slide prevention projects in Viet Nam and other Southeast Asian countries.

In addition, Fecon and Raito would cooperate in introducing slope stabilisation technology, which has already proved successful in Japan, in Viet Nam.

Fecon said that this technology would help prevent the collapse of slopes, especially of construction work in mountainous, river-side and coastal areas which were at risk of collapse due to the impact of climate change.

In September 2016, the two companies founded a joint venture, Raito – Fecon Initiative Geotechnical Engineering Joint Stock Company. Fecon and Raito started co-operation in June 2015 with an agreement to cooperate in implementing underground work for Metro Line 1 in HCM City.

Pham Viet Khoa, Fecons chairman, said that Viet Nam and neighbouring countries had significant potential for infrastructure development.

Fecon with 17 member companies reported revenue of VND2.8 trillion (US$120.2 million) and after-tax profit of VND252 billion in 2018, representing a rise of more than 42 per cent over the previous year.

In 2019, the company targets to reach VND4.2 trillion in revenue. — VNS