Hoa Binh signed a cooperation agreement with Primetech Constructions worth up to USD 2 billion

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VHDN – One of the key business strategies of Hoa Binh Construction Group Joint Stock Company (HBC) is expanding into foreign markets to become a global construction corporation and doubling profits. On August 23, 2023, Hoa Binh signed a cooperation agreement with Primetech Constructions, a partner with great economic potential. The cooperation agreement is worth more than 2 billion US dollars. Van Hoa Doanh Nhan had a quick interview with Mr. Le Viet Hai - Chairman of the Board of Directors of Hoa Binh Construction Corporation JSC (HBC).

Reporter: One of the business strategies of Hoa Binh Construction Group Joint Stock Company (HBC) is expanding into foreign markets to become a global construction corporation. How has Hoa Binh prepared for the stepping-stone in terms of economic resources, human resources, and legal in the journey to the international market?

Mr. Le Viet Hai: The strategy is presented in the book "Golden Decade – A New History", and Hoa Binh has implemented seven strategic tasks simultaneously. Throughout the eight chapters are my thoughts and wishes regarding the strategic development of Vietnam's construction industry, in which the role of Hoa Binh Construction Group is to expand Vietnam’s construction industry to the global market strategically. Challenges, prospects, and duties of Vietnam's construction industry and the Group contribute to realizing this significant and meaningful goal in the golden population period 2020 - 2030.

Hoa Binh has established and grown stronger and stronger and has affirmed its position and role through each project. From the initial number of employees of only a few dozen, Hoa Binh now has a firm, decisive, and dynamic team of management personnel and more than 6,000 people with professional qualifications, creativity, and commitment to the company. In 2006, Hoa Binh was the first general contractor listed on the Ho Chi Minh City Stock Exchange. In addition, it is the only construction company in the South selected by the authority to participate in the "National Brand" Program and was honored with many prestigious domestic and international awards. Hoa Binh has been asserting that we can replace all foreign contractors in Vietnam when our level has been acknowledged in the global market.

In the meeting with the Prime Minister at the end of 2019, I expressed my aspirations and proposed to the Prime Minister to create the most favorable conditions for Vietnamese contractors to improve their competitive advantages in the construction industry so that this industry can become a key economic sector of the country, and at the same time, developing into the global market. My fervent proposals are presented in the Appendix section of the book "Golden Decade – A New History ".

Reporter: Can you tell us about the crucial milestones Hoa Binh has achieved in realizing its global strategy and "double profits"? What has Hoa Binh done to prove to be a pioneer in construction export?

Mr. Le Viet Hai: Despite facing challenges in the domestic market during the past six years, Hoa Binh is determined to pioneer construction exports to foreign countries. The most important milestone was when we signed strategic cooperation agreements with potential and like-minded partners after a period of market research and searching for strategic partners, including Keystone Constructions Ltd in Orange County, Hoque Global in the US, and now Primetech Constructions Pty.

Reporter: Today, Hoa Binh signed an agreement with Primetech Constructions Pty, a partner with strong financial potential and reputation in Australia. Could you tell us more about this partner and the projects that Hoa Binh will implement right after the signing ceremony today?

Mr. Le Viet Hai: The signing ceremony today, with several cooperation agreements with Primetech Constructions, is worth over 2 billion US dollars. This cooperation is a milestone and a mark of success after some time with constant efforts and ambition of Hoa Binh to bring Vietnam’s industry to global markets. With the role of general contractor for large projects, Hoa Binh shall move skilled workers and technicians and simultaneously export domestic construction materials to foreign countries. With its globalization strategy, Hoa Binh will earn a large amount of foreign currency from projects and support Hoa Binh in creating a solid financial potential. Hoa Binh's cash flow shall be stable, subsequently increasing the profit margin in our business activities.

In the signing ceremony with Primetech Constructions Pty, there were essential contracts, such as a Strategic Partnership Agreement in construction, The contract that assigned Hoa Binh Group to be the design and build general contractor for the Matevulu Sands Hotel and Resorts Project in Vanuatu Island, signed with Primetech Construction Pty Ltd, and Matevulu Sands Limited, with a total value of up to $1.8 billion. Hoa Binh's general contractor part is $900 million.

More about our partner Primetech Constructions Pty Ltd. They are an enterprise operating in the construction and real estate investment field proliferating in Australia, and they also invest in large-scale projects in Australia and Vanuatu Island. According to the strategic cooperation agreement between the two parties, Hoa Binh and Primetech Constructions Pty agreed to become strategic partners in construction activities, including design, construction, and import-export of materials and construction equipment. The two parties committed to mobilizing the best of their resources, knowledge, and experience, establishing a long-term, sustainable relationship to develop the Australian, Vanuatu, and Pacific markets jointly.

Specifically, Hoa Binh and Primetech Constructions Pty will cooperate to implement a project in the island country of Vanuatu, invested by Matevulu Sands Limited. The project is a complex with a scale of a commercial center and a hotel block.

The archipelagic nation of Vanuatu is located in the southwestern Pacific Ocean in Oceania. It is a coral and volcanic archipelago consisting of 83 large and small islands with a length and width of about 850 km. About 75% of the land’s length and breadth is covered by tropical forests; Vanuatu is at the peak of tourism development, exploiting the hidden beauty. This beautiful tropical paradise has fine white sand, clear blue water, a cool sea breeze, and swaying coconut trees. Vanuatu also has mesmerizing landscapes such as the Blue Lagoon with its stunning turquoise blue waters or the Mele Cascades, a collection of terraced pools that plunge down the rocky hillside, then pour from a height of 35m down into a natural lake, creating a scenic view.

In addition to the Matevulu Sands Hotel and Resorts project in the island country of Vanuatu, Primetech and Hoa Binh also cooperated in the construction of Primetech Constructions Pty projects in Australia, the first of which are four large-scale projects with a total value of nearly $1.5 billion.

Congratulations on your success and Hoa Binh Construction Group!