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“The Coteccons Chairman Unveils a ‘Secret’ to the Rise of Vietnam’s Top Contractor from Internal Turmoil”

24 August, 2024

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Coteccons is currently the leading construction company in Vietnam in terms of revenue.

In June, Coteccons was ranked among the top 500 largest companies in Southeast Asia by Fortune (Fortune South East Asia 500). Specifically in the construction industry, Coteccons is the largest representative in Vietnam in terms of scale to be included in this list.

How did a company that once faced a prolonged “internal chaos” (2019-2021) regain its “giant” position and continue to accelerate strongly? Chairman of the Board of Directors of Coteccons, Bolat Duisenov, shared that the main reason was the company’s serious, transparent, and honest practice of ESG. As he affirmed in his article below:

“Don’t wait for profits to practice ESG; instead, practice ESG to gain profits.”

ESG IS NOT JUST FOR THE “RICH”

Coteccons believes that any business does not need to choose between revenue growth, profit, or becoming an ESG-oriented company (environment, society, and governance). Why do you think they are two separate paths instead of one common destination? Coteccons has done it. We continue to build sustainable buildings while accelerating development and maintaining our leading position.

At Coteccons, everyone from construction workers to office staff practices ESG from the smallest things.

In the past three years, the company has grown by more than 50% annually, and in the past 6-7 years, we have built more than 43 green buildings with LEED certification, helping to save energy and improve design, operation, and maintenance efficiency. Currently, we are constructing another 4 to 5 projects, and we are delighted to do so. Coteccons is proud to be a leading company in Vietnam and among the top companies in Southeast Asia in terms of the number of completed green projects. This also proves that you can make a green commitment while remaining profitable.

*(LEED is a green building rating system developed by the US Green Building Council (USGBC). It is the most popular standard in the world today for evaluating the “greenness” of construction projects.)

We are also proud of our initiative to research alternative materials such as cement, steel, bricks, and other materials to reduce CO2 emissions, a significant issue in the construction industry, which can account for 30% to 40% of emissions.

We are even prouder that Coteccons is very active in reducing and recycling construction waste, reducing noise, and taking care of people and the environment around the construction site. Our goal is to transform the construction site into a comfortable workplace. Coteccons has worked with nearly 30-35,000 construction workers and taken care of them—the most vulnerable people in Vietnamese society.

What I want to say is that there is no contradiction between the goal of rapid development and maintaining a sustainable pace in the present and long-term future. With a firm footing and creative ideas, you can start today without waiting for your company to become truly strong.

By the end of this year, we will introduce a new product related to the “Fourth Spatial Dimension.” When we discuss with clients or designers, we talk not only about technology, price, and time but also about the environmental impact of these methods and technologies.

A practical example is that during the construction process, there is a lot of noise and waste, but in the LEGO factory project, we recycled 93% of the construction waste, far exceeding the initial commitment of 75%.

I could give more examples, but the most important thing is not to get caught up in numbers or rigid targets. We must practice ESG not just because of regulatory requirements but because we first understand its importance.

PURSUING WHAT’S BEAUTIFUL FOR THE FUTURE, NOT NUMBERS

Today, within Coteccons and other partner companies, many people are caught up in numbers. Recently, I’ve seen a proliferation of KPIs, especially on environmental and ESG issues. Don’t get caught up in them; instead, focus on the fundamental reason: why practice ESG?

Mr. Bolat (far right) at the event honoring the company in the list of “Top 50 Sustainable Development Enterprises 2024.

Let’s look back to when Coteccons was first established. Our goal was simple: to build, serve customers, and contribute to society through valuable projects. But as the company grew stronger, some people forgot the initial goal. They set KPIs for revenue and profit. The same is true for ESG! Many people have polished it with flowery words, forgetting why we started ESG.

Aren’t we all trying to promote the good within the company itself? I affirm that Coteccons has and will continue to practice ESG honestly and transparently, not falling into the “trap” of superficiality. Because we understand that

when a company practices ESG, it is leaving a better world for our children.

The decisions we make today will affect the lives of our descendants.

Coteccons has had ESG ambassadors for the past six years, and they have always reminded us of our goal, so we don’t get caught up in chasing titles, awards, or numbers.

REDEFINING “TIMELESS BUILDINGS”

Now, when it comes to the construction industry, everyone mentions energy solutions. That’s quite unusual! Why? Because it takes two to three years to implement an idea. This shows how important people think it is, but in the end, the result is sometimes… nothing at all(!).

The question is, should we continue with green solutions? We can’t answer for anyone else. But Coteccons is a group of 2,500 passionate engineers. We always comply with regulations and create beautiful, energy-efficient, and cost-effective buildings.

We don’t do this alone; we collaborate with many partners to comprehensively address related issues. Coteccons has built a network of 57 certified green partners and suppliers, prioritizing proposing green materials and solutions in the projects we implement.

Coteccons pursues the principle of transforming construction sites into open green offices where people can work comfortably.

The challenge here is that in a project, one side only wants to make money, and the other side (end customer) wants to gain significant long-term benefits. So, how can the contractor reconcile this?

To answer this question, we need to redefine “timeless buildings.” Iconic buildings are not only determined by aesthetic appeal or architectural complexity but also by safety, convenience, and the meaning they bring to people, regardless of scale.

First, Coteccons believes that the contractor must take care of the building from the beginning to the maintenance stage: including many steps such as waterproofing, wall cracking, tile and paint peeling, MEPF, and even movement inspection… Time will be counted in years or even decades.

What should construction companies do to create buildings that last for 100 years while maintaining rapid development? At Coteccons, we collaborate and work together on projects. This is why, as Vietnam’s leading construction contractor, Coteccons must be the center—the catalyst—the critical link for the sustainable development of the construction industry, connecting partners, subcontractors, customers, engineers, and construction workers.

This is a great opportunity for private enterprises in Vietnam and even for large construction companies in Southeast Asia. The construction industry, with its wide range of stakeholders, including cement and steel manufacturers, designers, data providers, and customers, can communicate, promote, and guide each other to find more sustainable, efficient, and less bureaucratic solutions.