FECON JSC has signed some bidding packages worth over 4 million USD in Myanmar market with expected profit of 15-20%, higher than projects in Vietnam.
3 years ago, in 2016, FECON started to approach and expand business to Myanmar market by cooperating with a local company, Rainbow Construction, to establish FECON-Rainbow joint venture company.
After 3 years of accustoming to Myanmar construction market, FECON is scaling up investment in transport infrastructure. Representative of FECON said that at the beginning of 2019, FECON together with Trung Chinh Company established a new joint venture, FECON – Trung Chinh Myanmar to keep ahead the opportunities of Japanese ODA transport infrastructure projects in Myanmar, in which there were 3 bridge projects, 2 port projects and 1 Yangoon – Mandalay railway renovation project.
It is known that Trung Chinh is one of the leading companies in the field of road and bridge construction in Vietnam. This enterprise has participated in many projects such as: Cua Hoi Bridge (Hoi An), Hung Ha Bridge, Hoang Van Thu Bridge (Hai Phong), Hanoi – Hai Phong Highway, Bach Lam Bridge connecting Highway no.37 and Noi Bai – Lao Cai highway …
Currently, FECON is implementing some packages at Bago Bridge, Yangon, Myanmar with the general contractor Tokyu Construction (Japan) on soil improvement as well as the construction of fabricate precast girders, erection of girders, steel beams and bridge decks with a total contract value of more than 3 million USD. Besides, another package at the Sittwe port worth about 1 million USD has also been signed with the construction of steel piles.
Thus, FECON’s projects are expected about 15 – 20% net profit, higher than projects in Vietnam. The last 6 months of this year will be busy time for FECON in Myanmar because of numerous of projects implementation. And FECON is pursuing a series of road, port & railway projects, which are Japanese ODA projects and Japanese to be general contractors.
FECON expects to sign about USD 11 million from projects in Myanmar in 2019 and USD 25 million in 2020 when receiving 30% chance out of the above projects.
It can be seen that, in the trend of expanding business to regional countries, Myanmar is a potential market for Vietnamese construction enterprises to affirm their names.
With the booming demand of infrastructure development, with the fledging market like Myanmar, many Vietnamese enterprises have taken opportunities to tap successfully such as Hoang Anh Gia Lai, Viettel or constructors like FECON, Hoa Binh, Trung Chinh.
Vietnamese construction companies have many competitive advantages such as design ability optimization, project management capacity, labor costs and especially Japanese and Burmese culture similarity when giant Japanese Contractors dominating the market here.