VN 
BACK TO THE NEWS PAGEOn June 3, 2020, Vietnam Report Joint Stock Company (Vietnam Report) officially announced the Top 10 prestigious Construction - Building Materials Companies in 2020. Accordingly, Ecoba Vietnam was honored to be in the rankings.
This is an independent research result of Vietnam Report, set up on scientific and objective principles. The reputation of companies is assessed based on research on the impact of financial factors, corporate image on the media and assessment of industry experts, specifically: (1) Competence finance shown on the most recent financial statements (with comparison and evaluation with industry standards); (2) Media reputation is assessed by Media Coding - encoding the company's articles on influential media channels; (3) Survey industry experts; Enterprise surveys on business situation, operating markets, quantity and quality of projects ... in the period of 2019-2020 are also used as additional factors to determine the position of enterprises in the industry.
List 1: Top 10 Most Reputable Building Contractors 2020
.png)
Source: Vietnam Report
List 2: Top 5 Most Reputable M&E Contractors 2020
.png)
Source: Vietnam Report
List 3: Top 10 Most Reputable Building Material Companies 2020
.png)
Source: Vietnam Report
Being in a very fast pace of development in the period of 2017-2018, the real estate market in 2019 suddenly "slows down". This leads to a decrease in the supply of construction-building materials industry, reflected in the number of projects approved significantly reduced. According to the Vietnam Real Estate Association, only 5 new projects eligible for implementation were approved in Hanoi in the past year. A recent survey by Vietnam Report showed that 91.4% of construction contractors, electromechanical contractors said that the number of approved projects decreased as their top difficulty in the past year besides the “outstanding’ problemssuch as legal procedures, implementation process, bidding or site clearance, price volatility of construction materials ...
Picture 1: Difficulties in implementing projects, affecting production and business activities of enterprises:
.png)
Source: Vietnam Report
Market of Construction - Construction Materials 2020: “Remove bad points and keep good points"
The survey results of Vietnam Report show that most enterprises think that in 2020 business will be more difficult (73.9%), only 13.0% of enterprises are optimistic to expect the construction and construction materials industry to grow more. Compared to the previous year, 4.3% said that the building and construction materials industry will continue to maintain a stable growth as in 2019. Notably, about 8.7% of enterprises surveyed said that the market would be "quiet” in the first 6 months of the year, and will be back active in the second half of the year after the epidemic ends, and the Government's stimulus packages begin to take effect. According to FiinPro's statistics, in the first quarter of 2020, the construction and materials industry recorded a decrease of 9.5% in revenues and 10.2% in profits after tax. The survey results of the General Statistics Office conducted in the first quarter of 2020 show that up to 47.5% of enterprises have more difficulties, 33.7% of enterprises keep it stable and 18.8% number of enterprises have better performance.
Picture 2: Forecasts about the business situation of construction enterprises in 2020:
.png)
Source: Vietnam Report
Although the prospect of construction-building materials industry this year is not positive, it is also necessary to objectively see that this is the period when the market self-adjusts and proceeds to restructure. In other words, the market "filters" for inappropriate factors to develop in a more transparent and professional direction. In order to overcome this period of "remove bad points and keep good points", the enterprises need to have specific and flexible business strategies.
According to the survey results of Vietnam Report, the enterprises in the building and construction materials industry said that they will focus on 6 main strategies: (1) Improving the quality of human resources; (2) Ensuring the quality and progress of existing projects and works; (3) Strengthening financial governance; (4) Promoting investment and technology application; (5) Continuing to develop the brand name; and (6) Researching new products, improving quality, and designing products. Corporate strategy priority is quite similar to McKinsey's 5Rs (Resolve, Resilience, Return, Reimagination and Reform) action model to help the enterprises handle the COVID-19 crisis that Vietnam Report introduced in newsletter in April, 2020.
Picture 3: Business strategy priorities of construction and construction materials industry enterprises in 2020:
.png)
Source: Vietnam Report
Construction industry employs about 4.3 million workers over 15 years old, most of them are seasonal workers, the rate of trained workers is only 13.1%. Labor only accounts for 20% of the construction cost, but is the decisive factor for the ability and quality of construction of the business. Therefore, the number 1 priority of businesses is to improve the quality of human resources.
The COVID-19 epidemic in early 2020 is considered as a "reagent" for businesses in general and construction materials enterprises in particular. Large enterprises with strong financial potential maintain market share, some have growth opportunities; In contrast, SMEs compete weaker, narrowed their market share, and some have to shut down due to lack of workforce and lack of workforce. Therefore, the next priority of companies in the construction-building materials industry this year is to keep the "piece of cake" market share through ensuring the efficiency, quality, progress of existing projects and works.
In the context of the global economic slowdown due to the impact of the COVID-19 epidemic, most businesses choose to increase their resilience during the crisis through strengthening financial governance capacity. When the supply chain is interrupted, consumers tighten their spending, businesses need to prioritize cash reserves, focus on liquidity assessment, and build scenarios to cope with situations. translation scenario with respective trigger points as well as business stability options, preparing for the recovery phase ...
Along with that, investment activities, technology application in production, improving the ratio of technical equipment to labor are also focused. Technology helps businesses to access projects better, design more appropriately, and also manage and operate more efficiently, especially for enterprises in the construction material industry using a large workforce and operating projects spanning many localities over a long period of time. While the whole world has entered the Industrial Revolution 4.0 with BIM (Building Information Modeling), VR (Virtual Reality), ECM (Enterprise Content Management) ..., Vietnamese enterprises cannot keep up with outdated construction technology such as 10-15 years ago.
7 trends in the short and long term:
Before the pandemic, the construction-building materials industry also showed "weakness" compared to other industries. Productivity stomped on the spot; Low digitization level; Low profitability is a few typical examples, not to mention the specificity of the industry, fragmented ecosystems, and a high proportion of simple workers directly on site. In recent years, a series of pressures such as the scarcity of skilled labor, high technical requirements, new construction materials, production methods and technology are demanding businesses in the industry. stop innovating. Here are 7 trends that are forecast to take place in the construction and construction materials industry in the near future.
Picture 4: Trends in the short and long term:
.png)
Source: Vietnam Report
