FECON 10 MILESTONES IN 2019

1. TURNOVER GROWTH IN THE CONTEXT OF DIFFICULTIES OF THE CONSTRUCTION MARKET

In 2019, construction enterprises in general and FECON in particular have faced many difficulties. However, FECON still maintained a stable growth with positive results in revenue. By the end of 2019, the company's revenue reached 3092 billion VND, increased 9% compared to 2018. This achievement is due to the implementation of many large projects in 2019, such as: Long Sơn Petrochemicals (Ba Ria Vung Tau), Nghi Son 2 Thermal Power Plant (Thanh Hoa), Yen Xa Wastewater Treatment Plant (Hanoi)...

2. DEVELOPING THE CAPACITY OF GENERAL CONTRACTOR WITH MANY CIVIL AND INDUSTRIAL CONSTRUCTION PROJECTS

The year of 2019 marks a strong step of FECON in the field of civil & industrial construction as the EPC contractor/general contractor, outstanding projects that have been completed & built FECON’s good reputation are Phenikaa University, Empire City, Gamuda City, Logistic Thang Long, Wellspring International School ... Others big projects such as Hoa Sen Dai Phuoc urban area, Vinh Tan Port (Dong Nai province) … started in the last months of 2019 and will be completed in the first half of 2020 ... FECON's strategy in the next 5 years is to promote the development of construction business as a EPC contractor/ general contractor based on excellent capacity in foundation and underground construction, to improve project management capacity and cooperate with other construction companies in principle of synergies to do great. This will help FECON gradually change from the role of subcontractor to main contractor, in order to avoid payment risks, empower its role and prestige in each project in particular and in the construction market in general.

3. ENHANCING ORGANIZATIONAL OPERATION EFFICIENCY BY ESTABLISHING NEWS DEPARTMENTS AND 4 NEW SUBSIDIARY COMPANIES

In 2019, FECON established new departments under the the Corporation, such as Board of Industrial Construction No. 2, Project Development Dept., Management Assistant Dept. In addition, FECON has established 4 new member companies: FECON Drilling and Basement Structure (FDB), FECON Trung Chinh Co., Ltd, FECON Piling 1 (FCPL1), and FECON Piling and Construction (FPL). By the end of 2019, almost these companies have positive business results. Thus, with the establishment of new departments and 04 member companies, FECON's operating model is clearly specialized to each departments, along with the direct workforce being gradually assigned to subsidiaries to undertake intensive work. At the same time, the leadership and professional project management force are prioritized to develop through FLF and PMP programs with the goal of enhancing the capacity of the EPC contractor/general contractor instead of a specialized contractor as before.

4. STRATEGIC COOPERATION BETWEEN FECON AND RAITO KOGYO (JAPAN)

On 4 April 2019, in Hanoi, FECON Corporation and Raito Kogyo Group (Japan) announced a comprehensive strategic cooperation.  Under this contract, the two sides will cooperate comprehensively. Accordingly, besides investing to own 19% of FECON (FCN) and 36% of FECON Underground Construction JSC (FCU), Raito also strengthened the development of underground works and soil improvement with advanced technology. Otherwise, through this comprehensive cooperation, FECON and Raito will jointly deploy new businesses by using slope stabilization technology which has already proved successfully in Japan. According to FECON's representative, this is a strategic and important step of the company related to urban underground works, soil improvement to prevent landslides in mountainous areas and river-side and coastal areas which are facing risk of collapse due to the impact of climate change. This cooperation is expected to open up new opportunities, lift the partnership between FECON and Raito Kogyo to a new level, from narrow specialized business partners to comprehensive strategic partners.

5. COMPLETING BUILDING OF NEW STRATEGY PERIOD 2020 - 2025

FECON strategy for the next 5 years 2020-2025 was officially launched with the consultancy of KPMG and strategic experts. Five official business areas that were announced are: Foundation and Soil Improvement; Underground Construction; Infrastructure Construction; Buildings and Plants Construction; Projects Investment. Each business is led by "a commander" who is deputy general director / manager in charge of appropriate areas of expertise. Accordingly, besides the 3 traditional core businesses including Foundation and Soil Improvement, Underground Construction, Infrastructure Construction, FECON is gradually transforming itselft from a subcontractor to a general contractor for buildings and plants construction; boosting projects investment, especially renewable energy projects; transport infrastructure projects, industrial zone and urban infrastructure.

With the aim of becoming a prestigious contractor and project investor in compliance with international standards, possessing excellent capabilities in foundation and underground construction, FECON is attempting to reach 10,000 billion VND of revenue by 2025; 825 billion VND of profit after tax. The launching of new strategy confirms the Corporation's orientation of becoming leading group in construction and infrastructure development in Vietnam in 2025.

6. WINNING MANY PROJECTS IN OVERSEAS MARKETS

In the context of the domestic construction industry facing a lot of difficulties, in 2019, FECON has stepped up the development of foreign markets. Last year, FECON won many bidding packages for big projects such as Bago Bridge, Swittee Port in Myanmar, and joined with RAITO KOGYO (Japan) in the North-South railway project in Manila, Philippines. In addition, FECON is also pursuing a series of road, rail and port projects, most of which are Japanese ODA projects in these two countries. FECON expects to sign a minimum of 20 million USD in revenue from projects in Myanmar and 10 million USD from projects in the Philippines in 2020. New projects in Myanmar and the Philippines that the company is implementing are expected to bring 15% - 20% net profit, higher than the projects in Vietnam.

7. CONFIRMING CAPACITY IN THE FIELD OF UNDERGROUND CONSTRUCTION

As the first Vietnamese contractor to operate the TBM at Metro Line 1 Ho Chi Minh City project in 2017-2018, FECON had a solid stepping stone on the path to become a main contractor with capacity of undertaking the stages in the construction of a Metro project. In 2019, FECON has continued to be the contractor to carry out the package of construction of retaining walls and soil improvement at underground stations of Metro Line 3 Hanoi project, Nhon - Hanoi Station section. This is considered as a new challenge for FECON because this is the first time that the company has applied Jet Grouting technology with a drilling angle up to 45 degrees. In addition, in 2019, 17 engineers and workers participated in an advanced training course for operation of the TBM at TTA in Malaysia. This team will directly participate in FECON's Underground Construction Projects such as Yen Xa 1 Wastewater Treatment Project, Metro Line 3 Hanoi … in the near future. FECON has prepared resources for tunneling works by TBM for urban railway projects in Vietnam when owning TBM used for Metro Line 1 project in Ho Chi Minh City.

8. ACHIEVING COMMERCIAL OPERATION GOAL OF VINH HAO 6 SOLAR POWER PLANT

On the 18th of June  2019, Vinh Hao 6 Solar Power Plant was officially taken into commercial operation. Commencing construction on October 2018, the plant was energized on June 7, 2019 and received the Commercial Operation Date (COD) certificate on June 18, 2019, becoming the first project in the Binh Thuan province to pass the conditional test and start energizing the same day. Then on June 18, well ahead of the deadline of June 30, 2019 for power plants to dispatch at the tariff of 9.35 cents/kWh for 20 years, the Vinh Hao 6 solar power plant reached COD before the deadline. With a total investment of 1,361 billion VND, constructed on an area of 60 ha with a designed capacity of 50 MW, Vinh Hao 6 Solar Power Plant is FECON's first energy investment project in the "two-legged" strategy: Project Investment and Construction. It is also an important milestone to help FECON take a deeper and drastic step to implement the investment strategy in the field of energy infrastructure in the next 5 years (2020 - 2025).

9. ORGANIZING SUCCESSFULLY GEOTEC HANOI 2019

The 4th International Conference GEOTEC HANOI 2019 - "Geotechnics for sustainable infrastructure development" took place successfully on November 28-29, 2019 at the National Convention Center, Hanoi. Organized in 2011, 2013 and 2016, the GEOTEC HANOI is considered as one of the world’s leading conferences on geotechnical and infrastructure field held in Vietnam. The 2019 conference recognized new records, such as: 260 abstracts for 6 topics of the conference; the attendance of more than 800 leading experts, scientists from 40 different countries and territories; the support of 10 sponsors, including 02 diamond sponsors, 03 gold sponsors, 2 silver sponsors, 1 bronze sponsor and 2 supporting sponsors; and nearly 50 exhibitors... This proves the attraction of GEOTEC HANOI 2019, of which FECON is proud to be the organizer, as well as to create a bridge to help scientists, experts and technicians in Vietnam get closer to the world's leading experts and technology.

10. FECON CELEBRATING THE 15TH ANNIVERSARY- HIGHLIGHT ON BUILDING CORPORATE CULTURE

In 2019, in addition to social activities such as: Blood donation; charity activities on the occasion of July 27; sponsoring scholarships for poor students..., FECON has promoted activities spreading the core values  through internal activities. The highlight of which is the event "FECON 15 years - Ready to break out". With a series of activities implemented since the end of 2018, such as the 2nd "I love FECON" writing contest, Spring Sports Festival - taking place from March 2019 across the North, Central and South of Vietnam; Site tour and the journey of "I love FECON" flag - bring the love to the FECONers working in the construction site, the event "Welcome home" with the participation of 100 workers, engineers coming from the construction site and especially the most awaited event - The 15th anniversary of FECON took place on June 17, 2019 at the National Convention Center in Hanoi, FECONers had the opportunity to get closer together. All these activities created an unforgettable “FECON 15 years - Ready to break out” in 2019.