Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex) plans to earn total consolidated revenue of VND16.34 trillion (US$697 million) in 2023, up 70 per cent year-on-year.

Profit after tax is estimated at VND860 billion, down 8 per cent compared to the performance in 2022.

The information was given at the Annual General Meeting of Shareholders of Vinaconex in 2023, held on Friday in Ha Noi.

At the meeting, General Director Nguyen Xuan Dong reported business results in 2022 and announced plans for 2023.

Accordingly, in 2022, Vinaconex recorded consolidated revenue of VND9.6 trillion, profit after tax of VND931 billion, up 52 per cent and 79 per cent, respectively over the same period in 2021, completing 63 per cent of the revenue plan and 66 per cent of the profit plan, respectively.

Dong said that the company did not complete the plan set out mainly because the construction and installation activities confronted difficulties due to obstacles related to site clearance, scarce supply of materials and sluggish disbursement of public investment capital.

This year, Vinaconex is also expected to complete the sale and handover of apartment projects: Green Diamond in Ha Noi; Urban Residential Area, and Hoa Binh Boulevard urban area in Quang Ninh Province; and Cai Gia Cat Ba Amatina new urban area in Hai Phong City.

The company will also seek land fund for social housing development.

Answering questions from shareholders about Cat Ba Amatina Project, one of Vinaconex's complex of sea villas, resort and shophouse resort, Chairman Dao Ngoc Thanh said the company had paid the entire land use tax to the Government. In terms of infrastructure, the project has basically completed legal procedures.

In the 2022-25 period, Vinaconex's management determines that construction is the field that accounts for a large proportion of the structure of annual output and revenue of the corporation. In which, public-invested transport infrastructure projects will still be the main driving force in growth.

However, the negative impacts of the COVID-19 pandemic, global inflation, plus the Government's tight monetary policy, the domestic real estate market entering a period of adjustment both in price and liquidity, and the slow disbursement of public investment capital will seriously affect the growth of the scale of the construction sector.

Besides, the competition on price due to job shortages, rising material costs and financial costs will erode the relatively thin profit margin of the construction industry, Thanh said.

Regarding the dividend payment plan, Vinaconex plans to pay a share dividend in 2022 at the rate of 10 per cent, corresponding to the fact that the company will issue more than 48.5 million shares. After the issuance, the company's charter capital will increase from VND4.9 trillion to more than VND5.34 trillion. The issuance is expected to be in 2023.

For 2023, the company plans to pay a dividend of 10 per cent but did not specifically mention payment in cash or shares.

Vinaconex's headquarters on Lang Ha Street, Ha Noi. In 2022, Vinaconex recorded consolidated revenue of VND9.6 trillion and profit after tax of VND931 billion. Photo Vinaconex

Viet Nam Construction and Import-Export Joint Stock Corporation (Vinaconex) plans to earn total consolidated revenue of VND16.34 trillion (US$697 million) in 2023, up 70 per cent year-on-year.

Profit after tax is estimated at VND860 billion, down 8 per cent compared to the performance in 2022.

The information was given at the Annual General Meeting of Shareholders of Vinaconex in 2023, held on Friday in Ha Noi.

At the meeting, General Director Nguyen Xuan Dong reported business results in 2022 and announced plans for 2023.

Accordingly, in 2022, Vinaconex recorded consolidated revenue of VND9.6 trillion, profit after tax of VND931 billion, up 52 per cent and 79 per cent, respectively over the same period in 2021, completing 63 per cent of the revenue plan and 66 per cent of the profit plan, respectively.

Dong said that the company did not complete the plan set out mainly because the construction and installation activities confronted difficulties due to obstacles related to site clearance, scarce supply of materials and sluggish disbursement of public investment capital.

This year, Vinaconex is also expected to complete the sale and handover of apartment projects: Green Diamond in Ha Noi; Urban Residential Area, and Hoa Binh Boulevard urban area in Quang Ninh Province; and Cai Gia Cat Ba Amatina new urban area in Hai Phong City.

The company will also seek land fund for social housing development.

Answering questions from shareholders about Cat Ba Amatina Project, one of Vinaconex's complex of sea villas, resort and shophouse resort, Chairman Dao Ngoc Thanh said the company had paid the entire land use tax to the Government. In terms of infrastructure, the project has basically completed legal procedures.

In the 2022-25 period, Vinaconex's management determines that construction is the field that accounts for a large proportion of the structure of annual output and revenue of the corporation. In which, public-invested transport infrastructure projects will still be the main driving force in growth.

However, the negative impacts of the COVID-19 pandemic, global inflation, plus the Government's tight monetary policy, the domestic real estate market entering a period of adjustment both in price and liquidity, and the slow disbursement of public investment capital will seriously affect the growth of the scale of the construction sector.

Besides, the competition on price due to job shortages, rising material costs and financial costs will erode the relatively thin profit margin of the construction industry, Thanh said.

Regarding the dividend payment plan, Vinaconex plans to pay a share dividend in 2022 at the rate of 10 per cent, corresponding to the fact that the company will issue more than 48.5 million shares. After the issuance, the company's charter capital will increase from VND4.9 trillion to more than VND5.34 trillion. The issuance is expected to be in 2023.

For 2023, the company plans to pay a dividend of 10 per cent but did not specifically mention payment in cash or shares. — VNS

VNS