CIENCO4: Vietnam's leading infrastructure construction group

(Baonghean) - Thanks to the rational, scientific, decisive, and focused management solutions of the Cienco4 Group's leadership, the company's scale has continuously expanded over the years, and its reputation and brand in the market have been increasingly affirmed, creating great trust among investors and domestic and international partners.

Number 1 Transportation Group

Established on December 27, 1962, formerly the Construction Department (Ministry of Transport), CIENCO4 has, after 55 years of development, become a leading investment and construction unit in the transportation sector in Vietnam, twice awarded the title of Heroic Unit by the State. Following the policy of the Government and the Ministry of Transport, on June 2, 2014, CIENCO4 underwent equitization, transforming its operating model from a 100% state-owned enterprise to a joint-stock company. This is considered a historical turning point in the formation and development of the CIENCO4 Group.

The Vinh Ngoc - Hanoi interchange was constructed by CIENCO4.

Operating under the joint-stock company model has facilitated market expansion and access to large-scale projects using loans from ADB, WB, and JICA in expressways such as Noi Bai - Lao Cai, Da Nang - Quang Ngai, Ben Luc - Long Thanh, and Nhat Tan - Noi Bai… This is something CIENCO4 could not participate in previously due to legal constraints imposed by the donors. In particular, the equitization process has created a strict, dynamic, and effective management mechanism, enabling CIENCO4 to continuously improve its competitiveness in the market; at the same time, it has promoted the proactive role in production and business and the true ownership of strategic investors, ensuring maximum benefits for shareholders and employees.

Less than a year after its equitization, in early 2015, CIENCO4 increased its charter capital from VND 600 billion to VND 720 billion. Most recently, on June 15, 2016, CIENCO4 successfully issued 28 million shares (par value VND 10,000/share) to existing shareholders, raising its charter capital to VND 1,000 billion, becoming one of the enterprises with the largest charter capital in the transportation infrastructure construction sector. In November 2016, in New Zealand, CIENCO4 was honored to receive the Outstanding Enterprise Award at the Asia-Pacific International Quality Award Ceremony. This is a prestigious award that large companies in the Asia-Pacific region aspire to achieve. Previously, in October 2016, Nguyen Tuan Huynh, Chairman of the Board and General Director of CIENCO4, was awarded the title of "Outstanding Vietnamese Entrepreneur of 2016".

Not only is CIENCO4 Group one of the largest infrastructure contractors and investors in Vietnam, but it is also a familiar and reliable partner of domestic and foreign businesses. Through the rational, scientific, decisive, and focused management solutions of the Group's leadership over the years, the company's scale has continuously expanded, and CIENCO4's reputation and brand in the market have been increasingly affirmed, creating great trust among investors and domestic and international partners. The value of production, revenue, profit, and employee income at CIENCO4 have continuously grown over the years. As of December 31, 2016, CIENCO4 Group had 8,000 employees, including engineers and workers, who are well-trained, formally trained, and have a rationally structured workforce with sufficient experience in all areas of production and business – an essential condition for the Group's development.

Furthermore, the Group's total asset value has grown over the years. While in 2010 the Group's total assets were only VND 1,363 billion, by December 31, 2016, they had reached VND 7,271 billion. Thus, in just six years, the Group's total assets had increased nearly sevenfold. This demonstrates that the Group is implementing the strategy set forth by the Board of Directors, achieving stable and sustainable development.

Currently, CIENCO4 Group owns and masters many modern and advanced construction technologies, ensuring the successful execution of large-scale projects with complex technical requirements, such as: Mobile formwork casting (MSS), balanced cantilever casting technology, cable-stayed bridges, urban tunnels, road tunnels through mountains, steel pipe pile cofferdam foundations (SPSP), weak soil treatment lines, highways, airports, seaports, civil construction, etc.

Based on the overall development orientation of the country and the global economic and political situation, the Board of Directors of CIENCO4 unanimously agreed to shift the Corporation's development direction to a multi-sector economic group, with investment in transportation infrastructure construction as the main focus, gradually expanding into fields such as real estate, tourism and resorts, industrial parks, environment, energy, and the production of other products...

The CIENCO4 Group's office building at 180 Nguyen Thi Minh Khai is currently under construction.

A trusted partner of Japanese businesses.

CIENCO4 Group is the contractor most involved in infrastructure projects using Japanese ODA funds in Vietnam. In Hanoi, projects include the Thanh Tri Bridge, Ring Road 3, Terminal 2 of Noi Bai International Airport, and the Nhat Tan - Noi Bai project. Many bridge and road construction projects on National Highway 1 and the North-South unified railway line, the Tan Vu - Lach Huyen Bridge (Hai Phong), Tan Son Nhat Airport (Vietnam's air and sea gateway), and many other projects in which CIENCO4 Group participated using Japanese ODA loans have left a positive mark and have significant economic and diplomatic implications for Vietnam's economic development.

Furthermore, CIENCO4 proactively collaborates with reputable international contractors, including those from Japan, to access new, advanced, and scientific technologies and management methods. Simultaneously, CIENCO4 regularly invests in new and modern machinery and equipment for construction, such as: road construction lines (modern paving machines, high-capacity vibratory rollers), equipment lines for constructing cement concrete pavements, arch bridges, tunnel boring equipment for mountain tunnels and urban tunnels, and other highly specialized construction lines. Currently, CIENCO4 is cooperating with Sumitomo Corporation on many large projects in Vietnam, notably the Ben Luc - Long Thanh expressway project, the Ben Thanh - Suoi Tien Metro tunnel project, and the Tan Vu - Lach Huyen expressway project.

Vietnam's longest sea bridge and one of the largest bridges in Southeast Asia was constructed by the CIENCO4-SUMITO MITSUI - Truong Son joint venture.

Simultaneously, CIENCO4 Group, together with Sumitomo Company, sent skilled officials, engineers, and workers to study and train in Japan under Sumitomo Company's system. To gradually realize the goal of transforming the Group into a multi-industry economic conglomerate, on October 5, 2016, CIENCO4 Group and Hemaraj Group (Thailand) signed an investment agreement with Nghe An province for a project to build and operate industrial and urban infrastructure in the Southeast Economic Zone (Nghe An), worth approximately US$1 billion. This is a very large-scale project divided into 7 phases, expected to start implementation in 2017 and be completed in 2038. Prior to that, in April 2016, CIENCO4 partnered with TECCO Corporation to establish TECCO - CIENCO4 Real Estate Investment Joint Stock Company to implement several real estate projects in Hanoi, Ho Chi Minh City, and Vinh City, now known as CIENCO4 LAND.

According to Mr. Nguyen Tuan Huynh, Chairman of the Board of Directors and General Director of the Group, "CIENCO4 always appreciates and welcomes Japanese partners to cooperate with us in construction and infrastructure investment projects in the form of joint ventures; PPP investment cooperation, especially the North-South Expressway construction project; and Long Thanh Airport project currently being implemented by the Vietnamese Government."

PV