Over the past three years, the construction and real estate industry have been one of the most exciting developments in the economy. According to the report of the Ministry of Construction, the revenue in the first 6 months of the year is estimated to be VND52,652 billion, equaling 48.4% of the plan in 2017.

According to the data of the Administration of Business Registration, in the first 10 months of 2017, there were more than 4,000 construction and real estate companies newly established. The growth rate was 62.5% compared to the last year. The amount of registered capital was also highest, about VND284,000billion.

These figures show that the construction and real estate industry is a very attractive business. Moreover, the construction and real estate enterprises are appraised to be potential for high profit growth in 2018.

In fact, in 2017, many large construction enterprises have achieved a brilliant year with high growth in the revenue over the quarters. In particular, in the first 9 months of 2017, Vinaconex's revenue reached VND6,624 billion, increased VND1,000 billion (18%)compared to the same period of last year. Total profit after tax in the first 9 months of 2017 reached VND 622.8 billion, increased 31% compared to the same period, and surpassed 40.5% of the year target set by the AGM (VND 443.3 billion).

In the first 9 months, Coteccons Construction JSC (CTD) recorded the revenue of VND18,185 billion, an increase of VND4,724 billion, equivalent to 35% increase compared to the same period of last year, and completed 67% of the year target (VND27,000 billion). Coteccons posted a net profit of VND1,190billion, nearly rose 24% compared to the same period of 2016. This is also the biggest profit growth in 9 months that Coteccons has achieved in recent years.

Meanwhile, Hoa Binh Construction Group JSC (HBC) announced the revenue in the first 9 years is nearly VND11,000 billion, equaling to the revenue in whole 2016, and increased 57% compared to the first 9 years in 2016. In addition, HBC's profit after tax in the first 9 months of this year reached nearly VND616 billion, rising 93% over the same period, and achieving about 75% of the year target.

According to Mr. Le Quoc Duy - Member of the Board of Directors, Deputy CEO of HBC, it is able to achieve the business plan of the corporation in 2017 due to our impressive results. In particular, as of 30/11/2017, HBC's revenue reached VND14,500 billion. It is potential to achieve the revenue of VND17,000 billion at the end of 2017, exceeding 6% of the target (VND16,000 billion), growing 65% compared to the results in 2016. HBC's profit after tax in 2017 is able to exceed 15-20% of the target (VND828 billion).

Mr. Duy has shared thatthe high growth inrevenue and profit ofthe corporation at the final quarter of the year is due to the consolidation of several subsidiaries with strong business results, including Tien Phat Real Estate Investment JSC (handed over the large number of houses); Jesco Hoa Binh JSC (a joint venture holds 47.8% of the cooperatedcapital with Japanese partners).

"Recently, we have also won the tenders of 5 projects with the value of more than VND2,500 billion at Lim Tower 3 (VND941 billion)and Southgate Tower (VND610.4 billion). The construction package of Sun Premier Village Kem Beach Resort project has total value of VND505 billion. Two remaining projects are No. 1 Operation Management Center- Sai Gon Silicon Park(VND228.6 billion) and Housing project - Z756 Zone (Hado Centrosa Garden) (VND225 billion)", Mr. Duy has shared.

With the good results in the first 9 months of 2017, the big construction enterprises have the great expectation in 2018. Mr. Do Trong Quynh - General Director of Vinaconex said that in the period 2017-2012, the growth target in revenue and profit of Vinaconex is set at 10-15%. In addition, Splendora An Khanh project will be the focus of Vinaconex with the revenue of about VND2,000 billion and the profit of VND500 billion by 2020.

As for HBC, besides of the revenue from construction industry, HBC also expects the big revenue from the real estate investment. In particular, Tien Phat Real Estate Investment JSC is operating in the housing development industry. The company is developing 6 projects that could bring total revenue of nearly VND2,600 billion by 2019. The selling schedule is complying with HBC’s expectations.

According to a recent report of BSC, HBC's business plan is potential due to the enhanced construction capacity and increased human resource plan (adding 20% of staffs), the positive movements in the real estate market which help to ensure the cash flow from construction activities. At the same time, HBC's real estate projects have high liquidity due to their locations in the center of Ho Chi Minh City and the quick progress of the projects.

Mr. Le Viet Hai - Chairman of HBC said that HBC would develop to the international market based on its competitive advantages of civil construction in the coming time. "HBC will build up its competitive capacity in the housing sector with a large scale in the near future as exploring the markets of the countries in the area. This will help Hoa Binh to achieve thehigher revenue and profit than current large domestic competitors", Mr. Hai said.

The great expectations of the large enterprises in the construction industry is very potential because  the experts have appraised the year 2018 will be a vibrant year for the real estate market. Regarding to the real estate market in 2018, Mr. Vu Dinh Anh - the economist has theforecast that there will be many better factors in 2018due to many support factors and policies. Mr. Anh argues that the credit policy in 2018 will loosen the credit for the economy.

According to Ms. Duong Thuy Dung – Director of Market Research & Development Consultant of CBRE Vietnam, the market in 2018 will have the positive movements because the infrastructure is gradually improving; especially the metro system is nearly going to the operation. Additionally, there will be the increase in housing supply resource and the sold apartments will continuously rise by the end of 2017 and 2018.The development trend is more diversified, as well as the crowded center will cause the expansion trend increases at the surrounding districts. "

By Nguyen Minh

According to CafeF

Source: http://cafef.vn/thi-truong-bds-tang-truong-manh-me-ong-lon-nganh-xay-dung-dat-nhieu-ky-vong-trong-nam-2018-20171218214246023.chn

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