Vietnamese contractors set revenue targets of trillions but are cautious about profit margins.

Vietnamese contractors believe there are many bright spots and opportunities in the construction sector with high revenue targets this year, but profit targets are very cautious.

Construction contractors set cautious revenue and profit targets in 2025 - Photo: QUANG DINH

On April 25, Hoa Binh Construction Group held its annual general meeting of shareholders and approved a revenue target of VND9,000 billion and after-tax profit of VND360 billion this year.

Compared to the profit of VND963 billion achieved in 2024 (mostly from the reversal of bad debt provision costs of more than VND1,200 billion), the profit target for 2025 decreased by 63%.

Mr. Le Viet Hai - Chairman of the Board of Directors of Hoa Binh Construction Group - said this is a cautious target compared to the company's financial situation and conditions.

According to Mr. Hai, 2025 will be a year of prosperity for the construction industry as the Government is showing strong determination in removing legal obstacles for a series of stalled projects. Mr. Hai said that some international consulting organizations assessed that the construction industry in 2025 could double the growth rate compared to 2024.

In 2024, Hoa Binh achieved net revenue of VND 6,421 billion, much lower than planned and down 15% compared to 2023, but after-tax profit reached VND 959 billion.

Besides, equity also increased from 93 billion VND to 1,748 billion VND, 18 times higher than at the beginning of the year.

Hoa Binh leaders said that from November 2024 to now, Hoa Binh has begun to prosper with winning bids for 14 projects, with a total value of more than 8,500 billion VND.

Meanwhile, Searefico Refrigeration Engineering Joint Stock Company - a large electromechanical contractor in the Vietnamese market also completed its annual general meeting of shareholders by approving a revenue target of VND 2,200 billion, more than double the target achieved in 2024 (VND 1,000 billion).

Consolidated profit after tax is expected to reach VND39 billion, 3.2 times higher than the actual level in 2024.

Mr. Nguyen Khoa Dang - General Director of Searefico - said that the company's business activities in 2025 have many bright spots, in which contracted sales are at 2,700 billion VND, an increase of 22% compared to 2024.

By the end of the first quarter of 2025, the company's backlog had reached a record level of VND 3,000 billion, 3 times the revenue of 2024, ensuring a stable source of work and revenue for the following quarters and a solid foundation for completing the 2025 business plans.

According to Mr. Khoa, the company has the opportunity to win another bid worth VND2,000 billion, but the 2025 business plan is relatively cautious based on estimates of recording only about 60% of revenue from each project.

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Source: https://tuoitre.vn/cac-nha-thau-viet-dat-muc-tieu-doanh-thu-hang-nghin-ti-nhung-than-trong-muc-loi-nhuan-20250425211957825.htm