Attended the ceremony, Viettel Construction had the participation of Mr. Do Manh Hung (Chairman of the Board), Mr. Pham Dinh Truong (member of the Board and CEO), and Mr. Bui Duy Bao (Chief Accounting).
Investor Funds and Investors had attended of 50 guests, Who’s representing the Investors Funds (Depends United States, Canada, Singapore, Thailand, India, China) and Vietcap Securities Joint Stock Company.
The opening conversation meeting between Viettel Construction and Guests, the session saw the business outcome in the first six months of this year with six sectors of Viettel Construction.
At the meeting, Mr. Do Manh Hung - Chairman of the Board shared with Investor Funds and Investors about the business strategy for 2025, a target revenue of the Corporation is 11.300 billion VND. However, the Corporation's schedule can complete this year (early 2 years with the plan), although Vietnam marketing is still volatile and difficult. The Corporation is building a business strategy for 2030 with a growth orientation of about 10-15%.
Mr. Do Manh Hung - Chairman of the Board (between positions), Mr. Pham Dinh Truong - Member of the Board and CEO (left), and Mr. Bui Duy Bao - Chief Accounting (right).
Answering questions about the TowerCoMr. Pham Dinh Truong - CEO of Viettel Construction said: as advocated by the Ministry of Information, Communications motivate Telecommunications share, using together telecom infrastructure. Therefore create favorable condition for Company's own telecom infrastructure as Viettel Construction. Moreover, Telecommunications to infrastructure investment will not effective than engaging TowerCos as Viettel Construction. So now, the rate using together telecom infrastructure of Viettel Construction is 1.03 and reaches 1.04-1.05 by the end of this year.
The schedule when the technology of 5G exploding Viettel Construction will have additional opportunities to invest in new BTS, otherwise 5G needs a high speed, therefore the gap is short, and demand for the location BTS becomes more. When Vietnam expanded 5G and IOT so smooth factor is the important key, it is closely linked density of BTS.
On average, a standard BTS station is currently invested by Viettel Construction at about 300-500 million VND/station, for small cell stations, the cost is only about 100 million.
Average depreciation of station assets according to the law is about 7-10 years, in the first years, depreciation costs will increase, making profit margins low, but when Viettel Construction optimizes the cost of procurement, development, When it comes to opening and operating, the payback period is about 7 years, then the profit margin increases a lot. On average, investment projects of Viettel Construction do better than the estimate by about 25%.
In addition, the longer the time, the more the number of shared carriers increases, the higher the profit margin when the depreciation is over. Currently, the profit margin of Viettel Construction's TowerCo segment is at least 20%.
Mr. Nam Hoang - Representative of Vietcap discussed with Viettel Construction
Operation and exploitation (VHKT):
On average, Viettel Construction's cultural and economic revenue grows 5% per year, the short-term plan of the Corporation will be to expand operation and exploitation for CMC, MobiFone and Gtel when doing 5G.
The revenue of the field of cultural and economic in 2023 will reach about 5,000 - 6,000 billion, of which domestic culture and art will be 4,200 - 4,300 billion, foreign culture will reach 1,100 billion.
In Myanmar market, many TowerCo have hired Viettel Construction VHKT such as: NTD, MNTI, TIM, HYE. For the Cambodia market, Viettel Construction is the full-time operator for MetFone.
Viettel Construction plans to expand its business model in Cambodia and Myanmar as in the country for construction and road construction.
For the Construction sector: The profit margin of telecommunications construction is currently higher than 10%, civil construction is over 5% (there are projects that do not reach 5% because Viettel Construction accepts a lower profit margin to cover communes that do not have construction works).
- Telecommunications construction:
Viettel Group hires Viettel Construction to build telecommunications stations with prices based on the investment cost of each station in different areas (urban and mountainous areas). Including the cost of space rental, purchase of equipment and materials, construction costs and operating costs.
In the plan to 2025, Viettel Group advocates using social capital, building 2,500 stations in 2023 and 4,000 stations in the period 2024-2025. These stations are all macro stations. After the 5G frequency is available, the Group will build more small cell stations. It is expected that by 2030, about 50,000 new small cell stations will be built.
Expected revenue in 2023 of the telecommunications construction and installation segment is about VND 400-500 billion.
- Civil Construction (XDDD):
Viettel Construction currently builds a variety of segments from B2C, SME and B2B. Meeting all the needs of people and business households, factories, and investors in 63 provinces/cities.
For B2B construction projects, Viettel Construction has signed and built with outstanding projects such as Louis City - Hanoi (VND 1000 billion), Aqua City - Dong Nai (VND 700 billion), Dat Xanh (VND 300 billion). ). Signed projects by Viettel Construction require the Investor to advance and pay the volume in stages. Some other projects The Corporation requires the project to have sponsorship from banks to minimize risks.
For B2C construction, Viettel Construction is currently the number 1 unit in Vietnam in terms of construction capacity and number of projects covering the whole country. By the end of July 2023, the Corporation's works covered 653/701 districts nationwide (equivalent to 93%), 2,271/10,609 communes nationwide (equivalent to 21.4%). It is expected that in 2023, the Corporation will build 2,000 - 3,000 houses with a value of 700 million VND or more, expected revenue from 1,200 to 1,500 billion VND. The goal by 2025 will be selectively accepting works with a value of 1 billion VND or more.
Viettel Construction's competitive advantage in the construction field comes from a package solution from: consulting, design, construction, providing smarthome solutions, furniture, operation, etc. In addition, it also supports families in applying for construction permits, working with banks to enjoy preferential loans when building houses. Therefore, helping customers to confidently choose and sign contracts with the Corporation.
The profit nature and advantages of the construction field of Viettel Construction is higher than the market because using the same management apparatus in the provinces, the Corporation only recruits more engineers to deploy in projects. Combining the set of standards that Viettel Construction is applying throughout the Corporation according to: People - Process - Technology - Administration.
Đại diện các Quỹ, Nhà đầu tư đến từ nhiều Quốc gia khác nhau (Mỹ, Singapore, Thái Lan…)
In the field of Integrated Solutions (GPTH):
Viettel Construction is one of the Top 5 M&E contractors in Vietnam. Revenue from the electromechanical segment is expected to reach VND 500 – 1,000 billion in 2023, with a profit margin of over 10%.
Currently, the Government has issued the Power Plan VIII, when there are detailed instructions from the Ministry of Industry and Trade, the investment demand will increase, the source of this segment is expected to reach 500 billion VND. On average, Viettel Construction constructs and installs about 3MWp every month, worth about VND50 billion.
Technical Services (DVKT):
Viettel Construction periodically maintains more than 50,000 stations and 300,000 km of fiber optic cables of Viettel Group. In addition, the housing projects built by the Corporation in the past 3 years have trusted Viettel Construction to clean air conditioners, washing machines, solar battery systems, etc.
The meeting with Funds and Foreign Investors took place over 2 hours
At the ceremony, Mr. Bui Duy Bao - Chief Accountant of Viettel Construction said: "The financial activities of Viettel Construction are currently optimizing cash flow. long term and high interest rate, short-term short-term working capital will borrow from banks to make up. This optimal operation can yield a profit of 1-2%. By June 30, 2023, Viettel Construction had equivalent loans and deposits of about 1,200 billion.
For long-term investment projects, Viettel Construction currently uses equity and bank loans, not short-term capital for long-term financing.