Fecon, a decade of development
Fecon, a decade of development
Fecon, the Foundation Engineering and Underground Construction Joint Stock Company, will mark its tenth anniversary this year, underlining a decade of development thanks to its distinct added-value approach.
Shaping distinct values
Construction is often regarded as a low added value sector, but providing extra value has remained the keystone for the young engineers that founded the company.
Chairman and general director of Fecon, Pham Viet Khoa, identified the firm’s advantage early on. Fecon concentrated on underground work, a fairly new field in Vietnam a decade ago, and the new company adopted this advantage as part of a creative and dynamic business strategy.
Fecon broke new ground as a private company dedicated to promoting scientific research and development. More than three years ago Fecon gave birth to the Institute of Foundation and Underground Engineering (Fecon Ins) which brought together top experts to promote research into technology and investment, which had knock-on efficiency and cost-savings for the firm.
To support scientific research activities as well as scale up Fecon’s influence regionally and globally, the company also hosts its GEOTECHN international geotechnical engineering for sustainable development conference every two years.
Following the success of the first conference in 2011, the second was held at the end of 2013, attracting over 500 delegates, including leading experts and enterprises in foundation and underground field from 27 countries, including top global experts such as professors Sven Hansbo (Sweden), Guilloux Alain (France) and Rolf Katzenbach (Germany).
The birth of Fecon Ins marked a turning point in the company’s development as it not only underlined Fecon’s unique approach, but has also provided added value in a sustainable manner. Fecon has consistently met the most stringent requirements set in FDI projects and the brand has become a common-place sight in multi-billion dollar projects throughout the country as a leading foundation constructor.
Fecon has played a leading role in the construction of the Formosa steel factory (Ha Tinh province), Samsung hi-tech complex (Thai Nguyen province), LG electronic manufacturing complex (Haiphong city) and Nghi Son oil refinery (Thanh Hoa province).
Fecon also operates its own enclosed value chain, ranging from material exploitation, manufacturing, to equipment supply in the execution of international standard construction works. The company, thanks to its scientific and technical foundations, can complete the whole gamut of foundation works, from surveying, design, and project management to maintenance. By the end of 2013, Fecon had raked in VND1.2 trillion ($57 million) in revenue, and VND116 billion ($5.5 million) in post-tax profits. Its stock rose 60 per cent in value in the past year. Fecon was ranked 18th out of the 50 best performing firms in Vietnam’s stock market by Forbes Vietnam magazine last year.
Rising to new heights
Fecon’s executives said to spur the company’s decade of development the group would adopt a business group model through forming strategic alliances with companies in infrastructure and construction.
The company is considering issuing more shares to strategic investors to boost its financial heft with a view to more effectively tap new opportunities.
This year, in parallel to further focusing on priority customers - foreign direct investment, official development assistance and national key projects and heightening financial capacity, Fecon is committed to providing services and construction techniques for underground projects in urban areas in an ambitious effort to achieve its target of 50 per cent revenue growth over 2013.
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