Construction enterprises: Finding new direction amid Covid-19

Along with the "freeze" of real estate, construction firm’s difficulty is not only on the construction site but also on the stock market. This is causing them to recalculate their direction.

The stock prices of some construction enterprises comparison chart in the last 6 months

According to experts, construction enterprises have been effected by the downfall and imppossible implementations of the real estate market since 2019 because of the tightening investment and construction permissions by local authorities.

Double impact from the market

Up to now, when the COVID-19 pandemic broke out, the real estate as well as the construction market were almost "frozen".

According to a leader of a big construction enterprise, nearly half of the workers in his company have lay off, the revenue has fallen sharply, the debts have been harder to be recoveried because the investors have no money either to pay. 

In the stock market, shares of some well-known enterprises in construction industry including Hoa Binh, FECON, Cotecons, Vinaconex, which are coming down for the recent 6 months.

Mr. Nguyen Van Thanh – CEO of FECON said that the current difficulties coming from COVID-19 pandemic have a marked affect on the economy in general and the construction market in particular, especially construction of buildings and resorts.

Finding new direction amid Covid-19

Under the influence of COVID-19, construction enterprises are required to recalculate their direction, find opportunities to survive and be ready to recover when the epidemic is over.

According to Mr. Nguyen Van Thanh, while waiting for policies of supporting the business community, in the current context, FECON is actively seeking opportunities coming from the development of industrial real estate due to the effects of the COVID-19 epidemic on China as well as the consequences of the US-China trade war.

“These effects are creating a trend of moving investment flows from China to Vietnam. With the strength of execution projects for FDI enterprises in Vietnam, we expect to "catch" this trend. "- Mr. Thanh emphasized.

Another bright spot expected by construction businesses is that the Government is promoting public investment, with a series of key national infrastructure projects and large-scale industrial projects being investment-accelerated. That will be an opportunity for infrastructure construction corporation.

In addition, in response to the predicament, construction enterprises have also tranformed to the strategy of multi-sector development. In addition to maintaining core business segments (construction, building or underground construction ..), it also expands into new business scopes including real estate, hydroelectricity, renewable energy, agriculture ...

An example of this expand solution is FECON which is currently investing in renewable energy and real estate infrastructure.