G1 00110 CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGIES FOR PHUC HUNG INVESTMENT CONSTRUCTION AND IMPORT -EXPORT., JSC IN THE PERIOD 2010 - 2015 BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY CỔ PHẦN ĐẦU TƯ XÂY DỰNG VÀ XUẤT NHẬP KHẨU PHÚC HƯNG GIAI ĐOẠN 2010 - 2015
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Now most of companies in the world regarded building a business strategy as One of priorities Directors of big companies spend 40% time of each year to review business strategy
A decade ago, Canon, a Japanese company, was still relatively small It set out to defeat Xerox, the American giant, and gradually grew into a global player By first studying Xerox’s technology and then developing its own innovations, Canon penetrated the Japanese and European markets—areas where Xerox had little or no presence—and emerged as a formidable competitor to Xerox.
By 1947, only about 20% of American companies had a formal business strategy By 1970, that number had grown to 100%, signaling a dramatic shift toward strategic planning across the corporate landscape Yet many firms still described building a coherent business strategy as one of the most time-consuming, important, and difficult tasks they face.
Mr Wilson, the chairman of GE, the American company, said he focuses on a limited number of tasks but is determined to complete the development of the company’s future plan, signaling that a clear, forward‑looking business strategy is highly valued by companies around the world.
Building the company’s business strategy is the continuous changing requirement of each company
Society continually changes, technology develops, people improve, and businesses must renew themselves to stay competitive If a company fails to adapt, it cannot survive in a dynamic market For example, demand for matches is declining, so manufacturers must pivot to new products; similarly, producers of equipment for textile companies are shifting as traditional textile operations contract Technological development and rising living standards have facilitated the growth of new service sectors Some people who worked in state-owned enterprises have gone on to start their own businesses and become competitors to their former employers Therefore, companies must continually renew themselves, which requires strategic planning Development in trade, technology, services, production management, and markets must be guided by a clear strategy.
Building business strategy is a critical requirement of setting up new business; joint venture or merge & acquisition
To survive and grow in a highly competitive market, companies pursue joint ventures and mergers & acquisitions (M&A) to strengthen their positions, guided by their business strategy The outcomes of such deals can vary: some firms see favorable results in the first year, with declines in the second year and losses in the third year Therefore, capital must be managed with careful consideration of sector conditions, the company's own capabilities, and its development strategy to ensure sustainable value creation through JVs and M&A.
Building business strategy is a requirement of international economic integration
Successful internationalization for companies hinges on a solid business strategy Vietnam’s accession to the WTO intensifies competition, bringing more foreign products into domestic markets As domestic and international markets increasingly converge, firms without a clear strategy will face mounting challenges in competing on price, quality, and innovation A well-planned globalization strategy enables companies to navigate market integration, seize cross-border opportunities, and sustain growth in a more open and competitive environment.
Every company needs a clear business strategy to define its future outlook and guide operations Without time for planning, directors may overlook strategy, leaving the business unable to position its activities or seize opportunities As a manager, you should own the task of building the strategy rather than delegating it, because determining the company’s direction is a priority for success Research and deliberate strategy development shape the direction of the business and align operations with long-term goals.
This study seeks to apply strategic management knowledge to formulate the business strategy of Phuc Hung Contrexim Construction Investment and Export - Import Joint Stock Company for 2010–2015, analyze the internal and external environment, and identify a suitable, flexible, and practical strategy to implement It then applies the selected strategy to develop the company’s production and enhance overall performance during the period.
* Object: Business strategy of Phuc Hung Contrexim Construction Investment and Export - Import Joint Stock Company from 2010 to 2015
Comparision, analysis and generalization method: Analyzing data from annual financial report, then, generalize to give comments
SWOT analysis: is a technique to analyze and handle results of environment, which helps the company build a scientific, practical and efficient business strategy
Statistic method: Collecting graphs, then summarize the growth trend of the company and the sector
Including 5 parts: Openning, Conclusion and 3 chapters
Chapter |: General theories of business strategy
Chapter 2: Current situation of the company
Chapter 3: Strategic plans and solutions
GENERALTHEORIES OF BUSINESS STRATEGIFS
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It is a decision-making model in a company that defines its purpose and objectives, identifies the main business activities, and establishes policies and plans to achieve those goals In organizations of different models and scales, the company‑wide strategy is applied across the entire enterprise At the corporate level, strategy determines which business activities the company will pursue, how it will compete, and how resources are allocated among these activities.
1.2.2 Strategy of Business Unit (SBU):
Business strategy defines how a company selects the products or markets for each activity, guiding each business unit to achieve its targets in a way that supports the overall corporate strategy By aligning goals, resources, and performance across units, the strategy ensures that individual efforts contribute to the company-wide objectives At the functional level, strategy concentrates on optimizing processes, capabilities, and resource allocation within each function—such as marketing, operations, and finance—to enable effective execution of the broader strategy Together, corporate, business, and functional strategies form a coherent framework that drives sustained performance.
The strategy focuses on supporting the arrangement of the company strategy as Well as on running the company’s business
According to Fred R David (2003): Business strategy is divided into 4 groups as follows:
+ Forward strategies: Increase the ownership or the control to distributors and retailers
+ Backward strategies: Find the ownership or the control of suppliers
+ Horizontal strategies: Find the ownership or the control to competitors + Penetrating strategies: Increase markets for existing products and services in current markets through more promotion
+ Increasing market strategies: Send existing products and services into new areas
+ New product strategies: Increase sales by improving or changing existing products or services
+ Diversification strategies for concentric operation: Add new products or services having relationship
+ Mix diversification strategies: Add new products or services having no relationship
+ Horizontal diversification strategies: Add related products or services based on existing customers
+ Joint venture strategy: Two or more companies coorporate to set up an independent company to operate for joint venture purposes
+ Narrowing strategy: Maintain operation by cutting cost and asset to prevent the company from losing revenue and profits
+ Cutting strategy:Sell a branch or a part of the company
+ Liquidation strategy: Sell all tangible and intangible assets
+ General strategy: Follow two or more strategies at one time
1.4 Process of building business strategy for the company
The external environment is a complex system of factors that create opportunities and threats affecting a company's operations at multiple levels Even with substantial resources, a business must adopt effective methods and strategies to anticipate, prevent, or mitigate risks and disruptions, ensuring resilient performance and sustainable growth.
External environment includes: macro environment and industry environment
Factors of general environment: Economics environment, Legal environment, Natural environment, Social environment and Technology environment
The macroeconomic environment exerts a more direct and active influence on a business than other factors, with shifts in these conditions creating both opportunities and threats across sectors and shaping corporate strategy The main factors to watch include trends in GDP and GNP, the level and direction of interest rates, the balance of payments, inflation, and the tax system and tax rates, among others.
The legal environment comprises the Party and Government policy system and the current legal framework, and a company should stay attuned to political trends and the government’s foreign affairs—domestically and internationally—as these factors influence the establishment, operation, and long-term growth of the business through regulatory changes, compliance requirements, and strategic planning.
Many companies now recognize that the natural environment directly influences business performance Key environmental factors include geography, climate, pollution, energy shortages, and the inefficient use of natural resources, as well as rising demand for these resources, plus social dynamics and general education levels These factors can affect strategic choices, operations, and financial outcomes Therefore, a company should consider these environmental influences when formulating its business strategy to improve resilience and long-term competitiveness.
The technology environment shapes strategic decision-making by presenting both opportunities and threats to a company’s plans Rapid technological advances create new markets and drive the development of innovative products, often rendering existing offerings obsolete This dynamic affects sectors such as telecommunications, information technology, and broader communications, and it also has implications for firms in mechanical and electronics to monitor tech trends during negotiations and strategic planning.
Using the Model 5 Forces of Michael E Porter (1985) to analyze the environment of the company (also called Analyzing Competition Structure in an Industry)
Relationship p among E these factors 1s presented in Picture 1.1 p
Threat of the entry of new competitors y
Bargaining power ; of suppliers Competitors in the New entrants industry Buyer
Competition among existing companies in the industry
Picture 1.1: Model 5 Forces of Michael E.Porter
(1) Competitors: Main content of the competition analysis is presented in Picture
What competitors What competitors are want to achieve doing and can do
Several issues need to answer about your competitors:
- Competitors are not happy with
Future goal: the current? Current Strategy:
At all levels of ——* - Ability rivals shift and change “4 Competitive Enterprise management and direction like? is like? multi-dimensional - What is the weakness of the competitors?
- What could help competitors to retaliate forcefully and effectively? we TS
Its effects and Both the strengths industry and weaknesses
Picture 1.2: The principal needs analysis on competitors
Customers decide the destiny of an enterprise, and their trust can be the most precious asset, earned by meeting customer demands more effectively than competitors This buyer power emerges under several conditions: when customers purchase in large volumes relative to the seller’s total sales; when switching suppliers is inexpensive or easy; when buyers signal potential backward integration with suppliers; and when the products they buy are standardized or have low differentiation, leaving buyers with plentiful supplier options.
Supplier power, or the bargaining power of suppliers, increases when suppliers can credibly threaten to raise prices or degrade the quality or availability of essential inputs It is strongest when there are few suppliers relative to buyers, when substitute inputs are not available, when the supplied goods or services are essential or highly specialized, and when suppliers can threaten backward integration into the buyer’s business In these conditions, suppliers can push terms more favorable to themselves, especially in markets where buyers rely on critical components or inputs and switching costs are high.
An implicit competitor refers to a new entrant in the field that can erode profits by deploying new production capacity and mobilizing the required manpower to gain market share To protect their competitive position, firms maintain legal barriers to deter outside penetration The main barriers include economies of scale and product diversification that favor the incumbent, the need for substantial financial resources, high switching costs to change products, limited access to stable and preferred distribution channels, and a cost advantage that the competitor cannot easily replicate.
Replaced goods, or substitute products, reduce hidden profits in a market by imposing a single price ceiling that drives price competition among competing items When high-profit fields see substitutes enter the market in mass, competition increases, leading to lower prices and potential quality improvements as firms strive to attract customers.
When competitive forces intensify, incumbent firms lose pricing power and find it harder to raise prices or achieve higher profitability The result is tighter profit margins and reduced potential for profit growth, making pricing strategy more challenging In this view, stronger competition is a threat to profitability, capable of compressing margins and eroding returns.
Porter's Five Forces strength can change over time as industry conditions evolve, so organizations should monitor shifts in supplier power, buyer power, the threat of substitutes, new entrants, and competitive rivalry to identify opportunities and risks and adjust their strategic plans accordingly This proactive approach supports effective strategic planning in a dynamic market environment, helping teams prepare responsive strategies as field conditions change.
1.4.2 Analyze internal environment of enterprise
Analyzing a company's internal environment helps identify its strengths and weaknesses relative to competitors while giving managers a clear view of the organization's ability to sustain competitive advantage over time This internal assessment centers on key functional areas—human resources, finance, marketing, administration, and information systems—and integrates insights from each domain to show how capabilities influence performance, efficiency, and differentiation.
In today’s dynamic business environment, human resources (HR) play a pivotal role in strategy execution and determine an enterprise’s success A strategy that looks strong on paper can falter if the people within the organization cannot implement it effectively The core HR functions—recruiting the right talent, delivering targeted training, optimizing the use of skills, guiding behavior, evaluating performance, and driving motivation—are essential to turning strategic plans into results When HR aligns talent acquisition, development, performance management, and engagement with strategic objectives, organizations achieve better execution, higher productivity, and sustained competitiveness.
ANALYSING THE CURRENT CONDITION OF COMPANY
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On 11.05.2009 the company has listed shares on the Stock Exchange Hanoi Securities HNX code is PHC shares, the shares of listed companies is also one of the promotional activities and raise image and reputation of the business and make investors and large investors known In addition, the company has recently established its own Marketing Department - Bidding has expressed interest attention to marketing and marketing activities of enterprises In the construction sector despite many construction projects have greater credibility with investors but the company's marketing activities have not done extensive Chiefly the brand, reputation and prestige available to investors has been signed, so the image of the company with strengths in technology in the construction sector construction parcel sliding board supply and construction of prestressed cable has not been widely
Although 49 products are known to investors, many have not fully understood or trusted prestressed cable systems To address this, the company will intensify marketing activities in the domestic construction market to raise awareness of the new product and related construction technology, positioning the company as a pioneer of innovative solutions It will organize technical seminars, engage design consultants, and provide investors with information and guidance on adopting new construction technologies and prestressed cable materials By educating stakeholders about the benefits of these systems, the company aims to help investors reduce capital costs and improve project efficiency through advanced materials and construction methods.
Phuc Hung Construction Investment Import & Export Joint Stock Company
- including three segments Constrexim is civil, industrial construction and commercial construction as found tensioning cables, steel formwork , hydraulic equipment, bulk cement,
Construction and installation of industrial activities became a rapidly growing revenue stream for Constrexim Phuc Hung, averaging 67.9% of total revenue during 2005–2008 and representing a major portion of the company’s revenue structure The company’s strengths include constructing plots, chimneys, towers, and pressurization systems, as well as manufacturing structural steel facilities for cement plants and delivering turnkey projects for food processing plants, livestock facilities, and small to medium hydropower projects.
In 2008, the company bid on numerous projects to build cement factories, processing plants for animal feed, and a hydroelectric plant, driving rapid growth in construction revenue Despite the strong demand, the year brought difficulties as prices for key raw materials—steel, cement, bricks—rose sharply, pushing construction costs up by about 40% in the first half of the year compared with 2007 Nevertheless, the company managed to maintain and even improve its gross profit margin versus 2007.
Table No.2.5: Sereval typical projects of industrial engineering till 2009:
No | Construction name Dia diém (Million
1 | The investment proposal to innovate technology of the Taineoyen 181.000 Quantrieu cement factory
| 4 Chimneys and sillos-The proposal of new Bim Son Thanhhoa 61.34]
| 3 | The proposal of Songthao cement factory Phutho 61.295 _ Grinding charge section: Furnace; Cooling Clinker bloack: Heat exchange tower system, homonegous xa
4 blend silos, Clinker sillos of quality and defective Neots tượng products
5 | Clinker silo and cement - Camranh Cement Factory Khanhhoa 58.597
Building Clinker conveyor bridge, 01 clinker silo of quality product and 02 Clinker sillo of detective
6 | product, Transition tower, powder material sillo, 02 Sonla 53.173 Cement Sillo - The tender No 6 - the Proposal of Sonla
Building - Transition tower, Station to feed furnace,
7 | Furnace bed, Block cooling clinker - in the tender No 5 Sonla 38.338 The proposal of Sonla cement factory
8 | Line 2 - Chinfon cement factory Haiphong 45.552
9 | Cement sillo - The proposal of Thanglong cement Ho “ly 41.531
10 | The proposal of line creating cement -Lahien Thainguyen 37.108
1 Powder silo, Clinker, Halong Cement Factory exhaust Quangninh 35.000 gas conditioning
- 12 | The line proposal 2 - Butson Cement Factory _ Hanam 27.444
13 Treating, assemblying steel structure - HaLong Cement Quangninh 16.789 Factory
14 The contained sillo - The proposal of Xuanmai animal Hatay 16.196 food process factory
- 1§ | Chinfon Cement Factory - Hiepphuoc Hiepphuoc 15.000
- 16 | Nhà máy XI măng Hải Phòng Haiphong 13.000
| 17 | Cement sillo - The proposal of Hoaphat cement Hanam 12.536
Phuc Hung Constrexim leads in civil works, with a particular strength in high-rise construction Revenues from this segment currently represent the largest portion of the company’s total income, at approximately 46.7% The group demonstrates strong technological capability; while many construction firms can participate in high-rise projects, Phuc Hung differentiates itself through the application of modern construction technologies, including cable tensioning, climbing formwork, and formwork sliding systems, enabling efficient execution, safer processes, and superior project delivery.
Phuc Hung has dedicated much time to research investment in equipment and solutions, ensuring the ability to perform the rapid test execution speed from 6-
8 on a floor Phuc Hung has applied and successful development of modern construction technology in many modern works as Head Viettel, 21 double-storey apartment in Vung Tau, Tower Manor, Melinh Plaza Supermarket,
Table No 2.6: Sereval typical projects of civil engineering till 2009:
Dongs) i | Baoviet block in Ho Chi Mink sity Ho cp Minh 122.360 có Building B block - Cobination of marks associated
2 | tenement house, Office with 21 floors - The Vungtau city 89.337 business centre of Vungtau city
7 Building basement of the International exhibition conference Centre in Vungtau city Vungtaul city 99.000
4 | The tender P2 : The proposal of Hanoi The Garden Hanoi 56.600
5 The tender P2 : The Manor advanced tenement Hanoi 43.425 house
6 | Head of the Telecommunication corporation Viettel Hanoi 36.526
B block with 15 floors - The business centre of
8 Vungtau city WaRgtau.cny nu d0 si Extruding pillars of 21 floors in The business centre of Vungtau city Vungtau city at
-_10 | Ho Chỉ Minh city national University Ho o_o 24.000
11 | The student hostel place 2-The Irrigation University | Binhduong 17.000
| 2 The prestressed cables - The tenement house with Vung tau city 14.838
Material production activities: 1o meet the needs of the market as well as meet the needs of the enterprise itself Constrexim Phuc Hung has invested a system of commercial concrete batching plants and modern In recent years this system has ensured batching plants supply concrete for all major projects that the Phuc Hung construction, and give the market a number of companies outside the concrete to ensure quality, the market value
Commercial activities: Phuc Hung Constrexim provide machinery and equipment construction, steel construction and prestressed cable bulk cement, which is prestressed cable imports from Thailand , China and Malaysia
From 2004 to 2008, the real estate market heated up, with rising demand driving an increase in raw materials tied to Phuc Hung’s business Although 2009 brought a difficult year for the construction industry, Phuc Hung’s commercial activities and trusted partnerships supported continued growth, underpinned by a reliable supply of goods that ensured quality, met schedules, and sustained customer credibility.
The company engages in rigorous study and successful research and development of construction technology, including reinforced concrete structures with prestressed cables and sliding-board systems This R&D strength is the company's core strength and reflects the application of new technologies to construction projects, which investors appreciate.
Following this initiative, the company is exploring the construction of high-rise projects of 40 stories or more Its research and development activities are focused on increasing work efficiency and strengthening competitive advantages in the construction sector, helping the company stand out against other enterprises.
Compared to other construction companies already listed the financial criteria of the Phuc Hung in stable and has high potential: nN G2
Table 2.7: Some financial targets from 2005 to 2009
ROA (Rate of net profit / Total asset) - 1.54% 172% 1,57% - ROE (Rate of net profit /Owner’s equity) - 15.25% 16.97% 13,47% -
From 2005 to 2008, Phuc Hung Constrexim recorded strong revenue growth, with average turnover increasing by 50.9% and gross profit rising by an average of 63.3% Despite operating with relatively low margins, the company's gross profit margin averaged 7.54% during the same period.
Current liquidity is measured by the current ratio (current assets divided by current liabilities), a key indicator of how readily the company can convert assets to cash to cover short-term liabilities and debt obligations This ratio reflects the firm’s flexible financial capacity to finance operations and meet short-term obligations Analysis of the period 2005–2009 shows the current ratio hovering around 1.0, indicating only marginal solvency and a barely adequate liquidity cushion The capital structure appears to be funded mainly by short-term debt and equity, with relatively less reliance on long-term debt, which can heighten liquidity risk Consequently, the current solvency metric experienced a slight adjustment, decreasing from about 1.00 to 0.98, signaling a slight tightening of short-term financial flexibility.
Liquidity for a construction company can be assessed with the working capital liquidity index, defined as (Current assets − Inventories) / Current liabilities In this context, inventories are typically low, with stock mainly consisting of raw materials, while the company often carries a relatively large amount of common stock For a small construction firm, this liquidity index tends to be modest—around 0.4—and has shown improvement in recent periods.
In 2009, the company reported a metric of 0.67, a figure typical of the construction industry where many projects are in progress, so it’s not considered worrisome Moreover, 2009 brought notable improvements in the company’s inventory management, boosting efficiency and better control over materials.
Overall solvency of the company's relatively low so the risk is very likely to occur for the company's financial situation
The company's capital structure shows a high debt-to-equity ratio of 6.75 in 2009, indicating that most assets are financed through borrowings This is common in the construction sector, where substantial debt financing is often needed to fund investment projects and property development A capital shortage is not unusual for construction firms, which helps explain the reliance on loans Listing the company’s shares on the Hanoi Stock Exchange (PHC code) emerges as a strategic move to boost prestige and financial transparency, while also providing a channel to raise capital for funded projects and advance the company’s growth plan.
Analyze strengths (S) weaknesses (W) opportunities (O), challenge (T) of 0090:9100 - Ina 60 1 StrenpthS (S): ch HH Hà Hà KT nh nhu 60
From analysis of the external environment and the environment within the company at the top, we analyze the strengths, weaknesses, opportunities and challenges for companies as follows:
* Executive board: The company has executive board ability, experience and energy market operator The management company is made towards a dynamic, creative, effective, respected development of both quantity and quality
Technology-driven growth defines our company, supported by ongoing investments in state-of-the-art equipment and modern machinery By embracing new technology, we perform specialized sliding formwork for silos, chimneys, and towers, implement pressurization systems, construct elevator cores, and rigorously test prestressed cables to ensure safety and reliability This high-tech approach enables us to deliver large buildings with rapid execution while maintaining quality across complex projects.
60 progress from 6-8 on a floor, diaphragm wall with piles Barret: cable prestressed floor without adhesive) was also highly effective as the company's reputation with investors
* Prestige of mark: With business operations but the company has no long and reputable brand in the field of construction and production of construction materials are evaluated for quality
* Customer net: The company has established networks for their customers and have good relationships with investors customers and geographical area of operation of the company spread across the country
* Business Culture: staffs members are proud of "We are Phuc Hung"
Funding the company’s owners should not be used to exploit current opportunities or finance every major project; financing major projects with loans increases financial risk and can erode the company’s competitiveness.
Financial risk stems from the company's capital structure and inefficient working capital management, with significant funds tied up in receivables and inventories This liquidity constraint reduces the company’s payment capacity and weakens the efficiency of current asset utilization, increasing the potential for cash flow shortages and financial strain.
* Administraction: The management costs are not effectively lead to increased costs reduce the profitability of the company
Vietnam’s building sector is set for sustained growth, driven by rapid urbanization and ongoing upgrades to weak infrastructure This favorable trend creates abundant business opportunities for the company to expand its footprint and tap into rising demand across construction, development projects, and related services as the country modernizes.
Vietnam’s international economic engagement is built on a solid legal framework shaped by government-signing agreements and active participation in global and regional trade regimes Through involvement in ASEAN and its ASEAN Free Trade Area (AFTA), and membership in the World Trade Organization (WTO), Vietnam gains favorable conditions for the ongoing economic integration process These frameworks provide access to international markets, attract foreign investment, and enable the country to learn from international experience, thereby raising its development level and competitiveness on the global stage.
61 of management and new technologies, economic cooperation and initial approach to the construction market
Government and department support is essential for driving broad-based economic development By progressively addressing gaps and inadequacies in the legal framework, state policies can guide investment, reduce regulatory uncertainty, and create favorable conditions for growth across all sectors of the economy, including the construction industry.
* The participation of company in the stock market: a very good channel for capital mobilization and also to improve the position, brand, reputation of the company
Competition in the construction sector is intensifying as barriers to entry remain relatively low, drawing more firms into the market and increasing overall competition With more players participating, market rivalry continues to grow across the industry The company’s technological advantages are unlikely to translate into substantial competitive pressure on rivals.
As more companies enter the construction industry, clients gain more options and become increasingly demanding To stay competitive, builders must deliver higher-quality work, faster project completion, and lower costs to meet evolving expectations and win contracts in a crowded market.
Construction sector risks stem from evolving legal and regulatory frameworks as governments continually refine rules governing the industry Core challenges include extended timelines due to slow legal clearance, frequent delays in payments and settlements, and complex administrative procedures in capital provisioning, all of which can derail project schedules In addition, macroeconomic factors such as interest rate and exchange rate volatility, along with import/export policies, drive uncertainty for materials and equipment that are not domestically produced As raw material costs rise, many construction firms face higher project costs, slower progress, compromised quality, and squeezed margins that threaten profitability and the broader financial health of the company.
Since its establishment, the Investment Corporation and Export Construction Phuc Hung - Health Constrexim has undergone a significant transformation and has continued to grow steadily The company has built its brand and reputation in the construction market through strong governance, organized leadership, and effective execution Phuc Hung has completed hundreds of projects from north to south, consistently finishing on schedule Many investment projects are rated highly for quality, capability, and broad operating expertise in project coordination The company’s strength lies in its specialization in sliding formwork for silos, chimneys, tower pressurization, elevator cores, and prestressed cable construction—fields that require high technology Today, Phuc Hung is one of three Vietnamese companies that actually own this technology.
Our strength lies in the company's second high-rise construction project While many firms operate in this field, Phuc Hung differentiates itself by prioritizing the application of new technologies for high-rise buildings The company is committed to investing in advanced equipment and innovative solutions, which has driven a rapid pace of execution—floors completed in 6–8 days.
Currently, the company is accelerating investment in its core construction and installation sectors by introducing advanced construction technologies to designers and investors Its new high-tech products include Barret-deposit financing applied at Danang Green Plaza and adhesive-free cable-tensioning floor systems Phuc Hung has successfully developed and deployed these innovations in a range of modern projects, including Head Viettel, a 21-storey apartment complex in Vung Tau, Tower Manor, and Melinh Plaza Supermarket, among others.
In addition Phuc Hung conduct joint ventures with foreign enterprises to Research on construction of 40 storey high building by climbing formwork technology
This article delivers a structured SWOT analysis of the company, detailing its strengths, weaknesses, opportunities, and threats (challenges), and explaining how these elements will drive the next phase of analysis; findings are organized in a chapter-based format to provide a clear, actionable path for selecting and implementing a cohesive company strategy that leverages strengths, mitigates weaknesses, capitalizes on opportunities, and addresses threats.
CHAPTER 3 STRATEGIC PLANS AND SOLUTIONS
3.1 SWOT analysis to shape the strategic plan:
SWOT Matrix is a tool that combines the strengths (S) weaknesses (W), opportunities (O) and risk (T) to form four types of strategies:
- SO strategy: Use internal strengths to exploit business opportunities of the external environment
- ST strategy: Use strengths of the business to avoid or reduce the threat from the outside environment
- WO strategy: Take advantage of external opportunities to improve weaknesses inside
- WT strategy: These are the defense strategies to reduce the weaknesses inside and outside threats
1 Potential development of construction sector
2 International economic affiliation c3 Interest, support of goverment and _ other departments
- Keeping construction market entry bby essence capacity:
Strategy to develop market (ST 52, S3 S4, SS+O1, O2)
- To strengthen enhance the strong position in the field of commercial business and materials: product
- Restructuring the organizational structure appropriate, building management systems and effective training to enhance human resources capacity and labor productivity: the strategy of restructuring the organizational structure and
'- Increase funding — for | development Resources (W1, investment in major projects | W2 W3 + O1 O02, O04) in the field of real estate and mining: diversification strategy (SI, S3, S4 SS + O1, 03, O04)
Challenges (T) facing the organization include a fiercely competitive landscape and the pressure to defend market position To address this, ST strategies leverage internal strengths—such as skilled staff and a culture of professionalism—to capture emerging opportunities, while WT strategies focus on mitigating weaknesses and countering threats by intensifying advertising and public relations activities Emphasizing responsible professional conduct, these initiatives aim to reinforce brand presence, strengthen stakeholder trust, and sustain leadership in the market.
2 Customers became | and Phuc Hung cultural pride | and compete with other
" as well as _ reputation, : : more difficult P companies: Strategies to corporate brand
3 Risks in construction | with administration cost | enhance advertising activities, effectiveness, application of a 5 new technology: DNA led HHARCHIE ỤN bị We, WS + low cost (S1, $2, $3, S4, SS | T1, T2, T3)
Through the SWOT matrix table, we have the strategic plan as follows:
- Strategy leading low-cost (SI, $2, $3, S4, S5 + T1, 12, T3)
- Strategic restructuring of the organizational structure and human _ resource development (W1, W2 W3 + O1, O02, O4)
- Strategies to enhance advertising activities, marketing (Wl, W2, W3 + T1, T2, T3)
3.2 Analysis and choice of company strategic plan
To select the business strategies of companies need to match the general orientation and objectives of the company in the period 2010-2015 using maximum
66 conditions of the company’s strengths, take advantage of opportunities brought, minimizing the risk to avoid risks and challenges to conquer
- Construction and development company into a specialized unit construction strength ability to implement package works great in countries and regions
To diversify the industry, the company pursues product diversification rooted in its traditional construction trades, expanding from high-rise residential and office buildings to a broader range of civil works and industrial projects The portfolio now includes silos, smokestacks, and water towers, built with sliding formwork technology and cable tensioning to improve efficiency, safety, and quality This strategy preserves core competencies while unlocking new markets, delivering integrated construction solutions for commercial, residential, and industrial clients.
- To promote all resources to enhance competitiveness, economic efficiency is to take measure mainly for the sustainable development of the Company