Boost Coteccons’ transformation into a diversified ecosystem through the core construction of integrated technology and green construction.
Hanoi, April 17, 2024, Coteccons Construction Joint Stock Company (HoSE: CTD) and Kusto Group signed a strategic partnership agreement to establish and execute an investment strategy in the Vietnamese market.
According to the agreement, Kusto Group pledges to invest 200 million USD through a co-investment partnership with Coteccons from 2024 to 2028. This strategic collaboration between Coteccons and Kusto Group will support Coteccons in enhancing its core business by leveraging these strategic investments to achieve important goals such as retaining clients by providing comprehensive solutions and services for Coteccons’ traditional customers and creating an edge in securing the portfolio of long-term customers, which is the foundation for growing revenue and improving profit margins in a context of market turbulence. Moreover, this partnership, based on the common principle values of Kusto Group and Coteccons in sustainable development, once again affirms Kusto Group’s continuing investment activities in the Vietnam market since 2005.
Mr. Alexandr Donov, member of the Board of Directors and Chief Financial Officer of Kusto Group, said, “We see the great potential of Vietnam and believe that there is still a lot of room for further development. A strategic partnership with Coteccons is a concrete commitment to contribute to promoting Vietnam on the investment list for our global partners. We believe that Coteccons, our strategic partner, will support us with their expertise and capacity to help us find suitable opportunities, seeking investment opportunities that create added value from this synergy. Kusto Group is firmly committed to investing in Vietnam’s future. We pledge a phased investment of USD 200 million, starting in 2024 and extending to 2028. This capital will be strategically allocated to leverage the synergies of Kusto Group and Coteccons.
The combination of the two businesses is expected to unlock positive signals in the picture of sustainable development in Vietnam in general and in the construction industry in particular. The two sides will also expand investment development in fields to anticipate future growth opportunities, such as high-technology industrial real estate ecosystems, expanding and upgrading supply chains with ecosystems serving core construction such as mechanical and electrical construction materials (steel structures, aluminum, glass, etc.), precast concrete, and infrastructure construction, and continue to seek implementation opportunities. Committed to developing real estate in the social housing segment. In particular, promote green construction practices and accelerate investment in high-tech research in construction in Vietnam through support programs to explore capacity and increase the value of brainpower for talented Vietnamese engineers.
In the short term, both sides will set priorities to evaluate investment opportunities and performance based on the experience of both sides’ experts, accelerating cost optimization initiatives and enhancing operational efficiency in the core business, including building supply-chain plans between contractors, customers, subcontractors, and suppliers, and optimizing the service portfolio to expand the scope of services for Coteccons’ long-term clients. In the long term, this platform will be the basis for Coteccons to implement its strategy of diversifying its revenue sources.
Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, shared: “The strategic partnership with Kusto Group is suitable and consistent with our mission and strategy; this is an important piece of the puzzle to comprehensively change and promote innovation for the development of the construction industry with a commitment to sustainable values; this is also an extended arm for us towards the image of an “industry leader” to contribute to shaping the healthy development of the construction industry. As a strategic partner, we promote transparency, professionalism, and harmonization of stakeholder values. With Kusto Group’s financial resources, international corporate governance experience., and the reputation of Coteccons in Vietnam, this partnership not only brings benefits to both companies but also benefits the whole market and Vietnamese people with high-quality development investment portfolios, creating great value.”
With an economic growth rate among the highest in the region and the world, along with a population of 100 million people, a rapid increase in the proportion of the young population and the middle class, and a high rate of urbanization, Vietnam is an attractive destination for foreign businesses and investors. Among them, Kusto Group is one of the corporations that recognized the potential and was present very early in Vietnam. In 1999, this group invested in Vietnam, and in 2005, Kusto Vietnam was established to expand investment and business opportunities here.
According to the assessment of Kusto Group leaders, not only is the economy growing rapidly, but Vietnamese entrepreneurs are also very dynamic, daring to challenge new things. Many businesses have proven success stories with outstanding development and expansion into international markets, such as Coteccons, which is an opportunity for Kusto to expand long-term business and investment partnership opportunities in Vietnam.
The strategic signing with Kusto also shows that Coteccons has prepared a clear plan to welcome foreign investors (FDIs) into the Vietnamese market, not only in investment but also in other fields such as production and construction technology.
About COTECCONS CONSTRUCTION JOINT STOCK COMPANY
Established in 2004, Coteccons has become a leading construction company in Vietnam. The company has grown in both scale and reputation in implementing world-class projects with a variety of services and sectors, such as residential, commercial, hotel, infrastructure, and industry. Continuously improving and developing, Coteccons possesses four unique and distinct values, called “COTECCONS INSIDE,” that have created prestige and brand. Specifically, Coteccons emphasizes its commitment to environmental sustainability in all projects, diversifying services and products, focusing on the customer experience, and bringing added value during operations and business cooperation.
ABOUT KUSTO GROUP
Kusto Group was officially founded by Yerkin Tatishev and three partners on the basis of successful projects they had previously conducted. To date, Kusto Group has reached the scale of a multi-industry corporation in key fields such as agricultural production, oil and gas, construction, construction materials production, etc., with total annual revenue exceeding 1 billion USD.
Kusto Group is currently operating effectively in nine countries: Kazakhstan, Uzbekistan, Israel, Singapore, Ukraine, the US, Italy, Canada, and Vietnam, with over 8,000 employees and over 4,800 subcontractors. The group’s member units provide products, services, and solutions with high standards to the market.
In Vietnam, Kusto Group, through Kusto Vietnam with headquarters in Ho Chi Minh City, has also had an operating history of 15 years and has contributed to the success stories of leading businesses in the industry. Kusto Vietnam focuses on helping fast-growing businesses develop their prospects by leveraging the company’s expertise and flexible approach.
Kusto Vietnam’s investment portfolio includes companies in the fields of real estate, construction, building materials, transportation and logistics, retail, and other consumer goods industries.
Kusto Vietnam is committed to supporting companies with a long-term vision and a management team willing to change and improve the country’s business environment.
More information about Kusto Group can be found at https://www.kustogroup.com and Kusto Vietnam at https://kusto.com.vn.
