FECON SIGNS MORE THAN 3,300 BILLION DONG NEW CONTRACTS IN DECEMBER 2023

In the last month of 2023, FECON Group (Hose: FCN) announced that it won a series of bids for new projects with a total value of more than 3,300 billion VND.  

In December 2023, FECON recorded a breakthrough in the infrastructure, civil, and industrial construction sector when it won a series of large-scale bids, readying work and revenue for 2024. 

Specifically, in the infrastructure construction sector, FECON received a letter of award for the "Phoenix Terminal - Vung Ang Port Investment Project" (berths 5 & 6) worth more than 1,000 billion VND. In this project, FECON will participate as a contractor to construct items including revetment, bored piles, wharf superstructure works, onshore works, and related works. Phoenix Wharf area of Vung Ang port is in Vung Ang Economic Zone, Ky Loi commune, Ky Anh town, Ha Tinh province. Phoenix Vung Ang Port Vietnam Co., Ltd invested in and constructed the project. The project's objective is to build a Wharf and other synchronous construction items, ensuring the ability to receive ships with a tonnage of up to 50,000, meeting the demand for importing goods, machinery, and equipment for the Formosa Steel Complex during the construction phase and transporting goods from Laos. 

Moreover, the FECON - Javico - Tung Phat Joint Venture signed a contract to build a railway overpass connecting National Highway 1A with Le Duan Street, Phu Ly City, worth 230 billion. In this JV, FECON is the leading consortium taking charge of the entire bridge structure. 

In the civil construction sector, in December, FECON announced that it had won the contracts to build the Quang Ninh Provincial Police Headquarters (1 basement and 12 floors above ground) and the administrative headquarters at 10 Tran Kim Xuyen - Hanoi (3 basements and 25 floors above ground). It is worth noting that FECON signed contracts as General Contractor for both packages, bringing in a value of nearly 1,000 billion VND. In addition, FECON is also increasingly promoting its civil construction capacity by undertaking two other packages: "Construction of underground structures and electromechanical systems" and "Construction of superstructures, interior finishing and landscape" at the CT2 Co Linh Long Bien Hanoi Building Project - Residential Area and Tu Dinh Sports and Entertainment Area invested by CT2 Real Estate Investment Joint Stock Company. The total value of the two packages is over 900 billion VND. 

In addition to the above projects, FECON also participated in the VINACO - FECON - Thanh Ngan - Nam Hai Joint Venture, signing the contract "Package No. 14 - All construction and equipment of the project" for the B5 resettlement area project belonging to the infrastructure of the new urban area of Thuan An (Hue City) worth 87.3 billion VND.  

(Pic. Mr. Nguyen Van Thanh - FECON's CEO)

According to Mr. Nguyen Van Thanh, General Director of FECON Group, with the packages in December mostly signed as general contractors, FECON is taking steps closer to the strategy of becoming a general contractor in urban infrastructure projects, traffic infrastructure, and civil and industrial construction. 

n the field of foundation construction, FECON continues to be trusted by the Investor Vingroup for the package "Providing and constructing PHC D300, D350 piles" worth nearly 5 billion VND at the project of Entertainment, housing, and ecological park on Vu Yen island (Hai Phong). Previously, FECON signed two bid packages with Vingroup Corporation, including the "Supply and construction of PHC piles" - phase 1 worth 7.48 billion VND and the "Construction of PHC D500 piles and concrete sheet pile vibration" for the river embankment system worth 68.45 billion VND. 

In the supporting business sector, FECON Hai Dang - a unit operating in the mining, processing, and trading of minerals and construction materials of FECON, has just joined hands with Hyundai Steel in the bid package "Supplying exported stones as raw materials for steel metallurgy in sizes 20-40mm and 40-90mm." According to this contract, FECON will supply stones to partners within the first 6 months of 2024 with a total contract value of 3.5 million USD (about 86 billion VND). In addition, this unit has also exported individual orders during the month with a total value of over 30 billion VND. 

Thus, in December 2023, FECON recorded new bid packages with a total value of more than 3,300 billion VND. With the contracts signed in December, FECON's total contract backlog value increased to about 4,500 billion VND. It is the basis for FECON to start the 2024 financial year confidently. 

2023 is a hard time in the entire construction and real estate market. Overcoming difficulties with tireless efforts, FECON continues to affirm its position in the increasingly fierce construction market, especially receiving the trust of demanding investors. With its existing potential and increasingly affirmed reputation, FECON expects to achieve more achievements in 2024, maintaining the traditional market and taking advantage of the wave of FDI shifting to Vietnam to succeed in 2024 and the following years.