Since the beginning of 2020 until now, construction enterprises have been continuously faced many difficulties due to objective factors such as: rapidly rising price of materials, which is directly affected by social distancing requirements leading to the demand for the construction industry dropped sharply in the residential, commercial and industrial real estate investment segments. Facing the above situation, professional associations and representatives of a number of enterprises have made recommendations to remove difficulties for construction enterprises such as: proposals for tax exemption and reduction, extension of time to repay bank loans, bank loan interest rate exemptions and reductions are proposed by construction contractors to the Government, State management agencies…
However, the solutions mentioned above only provide temporary pain relief, but cannot solve the main dilemma of the industry, which is the unfair competition in the market that tends to increase negative sides. Profit margin has been increasingly “shrinking” in recent years, according to HOUSELINK’s report in the past 2 years, 100% of the leading construction general contractors in Vietnam interviewed said that: Profits are no longer worth much, many projects have suffered very heavy losses due to the pressure of having to work to maintain the system, cash flow, etc. They had to suffer accept very low bids to compete with the competitors as newly established contractors.
The reasons for this situation are:
- The barriers to entering the industry are not large, leading to an explosion in the number of contractors in the market, but the information and construction quality and performance capacity of these contractors have not been properly verified and transparent.
- The construction industry is a specific industry: the final product is only formed in the future. Therefore, it is a fact that many investors, especially foreign investors who are not familiar with Vietnam’s construction industry, do not have enough information or suffer from business tricks, complicated relationships, etc, making it very difficult for them to evaluate and distinguish the capacity between contractors, the quality of the bid documents, as well as anticipate the risks during project implementation. Therefore, the only factor they let them choose is the bid price. As a result, the Vietnamese construction industry market is increasingly distorted, as well as the quality of construction works has not improved much.
If we can solve these core causes, along with the positive outlook of Vietnam’s construction industry in the coming years. Certainly, capable businesses will have many opportunities to transform as well as the Vietnamese construction industry can develop sustainably.
As a leading construction market consulting in Vietnam, along with a large community of members who are reputable contractors. HOUSELINK initiated the ranking to assess the capacity of enterprises in an objective, independent and transparent way in Vietnam’s construction industry as a solution to contribute to solving the problems mentioned above. First of all, we will evaluate and rank the following: General construction contractor, M&E general contractor. Because these are the leading enterprises in the supply chain of the industry.
Through this activity, we believe that we will contribute a small part in helping the business community in the industry’s supply chain, especially investors (domestic and foreign worldwide) to a clearer, more accurate view of the capacity of the general construction contractors in Vietnam to avoid the current situation of mixed brass. From there, allowing investors to easily and quickly search, evaluate, compare and select suitable partners to ensure maximum efficiency for their investment projects.
Besides, CONSTRUCTION COMPANIES will receive many benefits when participating in this ranking, being named in the ranking is a way to help businesses affirm their transparency, professionalism, and good promotion company image in the market and directly to investors and businesses in the industry.
HOUSELINK conducts a large-scale survey with construction general contractors nationwide. The collected data will be appraised and evaluated by HOUSELINK according to the criteria of the HOUSELINK Ranking system including: (1) Financial capacity, (2) Human resources, (3) Technology and management, (4) ) Experience, (5) Reputation level, (6) Corporate culture. Learn more about HOUSELINK Ranking.
It is expected that the collection, survey and evaluation of information on construction general contractors will begin from October 11th , 2021, after 30 days from the date of receipt of sufficient and valid dossiers, we will send this report for each registered participate. At the same time, we released a list of Top construction general contractors based on the criterion of “Revenue in the last 3 years” divided by region and market segment, including:
To register, please answer the questions in the attached form here.
Note: The participation in ranking and display on the list of Top general construction contractors is COMPLETELY FREE.
For further details, please contact Ms.Gin Nguyen – 0961 511 066.