Hanoi (VNA) - FY2026 marked another step forward in Coteccons’ recovery and growth journey, with stronger profitability, cash flow, governance, and financial foundations. In the following interview, Ms. Dinh Thi Hong Tham, Corporate Secretary and the Company’s Authorised Spokesperson for Information Disclosure at Coteccons, shares perspectives on the Company’s business performance, capital allocation philosophy, profit growth outlook, “Saving Mode,” and plans to broaden international investors’ access to CTD.
Reporter: How do you assess Coteccons’ FY2026 performance and its ability to balance reinvestment needs with sharing the benefits of growth with shareholders?
FY2026 delivered improvement in both the scale and quality of growth. Revenue reached 34.34 trillion VND, up 38%, while profit after tax rose 73% to 788 billion VND, nearly twice the pace of revenue growth. Net profit margin improved to 2.3%. Notably, operating cash flow turned around from negative 1.2 trillion VND to more than positive 800 billion VND. The cash position reached nearly 8 trillion VND, while receivables remained broadly stable despite strong revenue growth.
These results show that revenue growth is being converted more effectively into profit, cash flow, and balance-sheet strength. Based on the FY2026 performance, and after considering capital requirements for core operations, construction capabilities, technology, people, and the FY2027 growth plan, the Board of Directors plans to submit a 25% cash dividend proposal for shareholder approval at the AGM. This represents a shift toward a more balanced approach between reinvesting for growth and sharing value with shareholders.
Reporter: What gives the Company greater confidence in sharing value with shareholders?
The core foundation is corporate governance. In the latest VNSI assessment conducted by HOSE, Coteccons achieved an overall ESG score of 84%-its highest score across all assessment periods. Within this, Coteccons’ Governance pillar score reached 81%, up 10 percentage points year on year and significantly above both the industry average of 53% and the VN100 average of 61%. This reflects significant progress in strengthening our corporate governance system, enhancing transparency and control effectiveness, and building management capabilities aligned with Coteccons’ Quality Growth strategy.
Our capital allocation approach is guided by three consistent principles: support sustainable growth, maintain a healthy balance sheet, and share value with shareholders when conditions allow. This discipline makes dividends a natural outcome of an efficient operating system, rather than a short-term objective.
Reporter: Coteccons previously operated in “Sales Mode” and is now shifting to “Saving Mode.” Why is the Company making this transition now?
Four to five years ago, Coteccons faced a “double crisis”: the severe impact of COVID-19 and leadership-level disruption. At the time, the Company had almost no new contracts, and a large operating system like Coteccons was running at only around 70–80% of capacity. “Sales Mode” was necessary to bring the engine back to full capacity, expanding the market, rebuilding customer trust, and securing enough work for the entire system to operate effectively again.
Four years later, Coteccons is in a very different position. Revenue has grown at a compound annual rate of 30–40%, the scale of operations has been restored, and the system is operating at higher capacity. With a sufficiently large revenue base, economies of scale are beginning to take effect: each additional unit of revenue no longer requires costs to rise at the same rate. The strategic focus must therefore shift from generating enough workload to extracting greater efficiency from the platform we have built.
This is the strategy behind “Saving Mode”. It does not mean scaling back our ambition, tightening the belt, or applying mechanical cost cuts. Coteccons still aims to grow, but not by winning more projects at any cost. The priority is to make the engine, now operating at high capacity, run better: using resources more efficiently, reducing waste, optimizing design, materials, and construction solutions, shortening delivery timelines, controlling costs, enhancing project quality, and managing cash flow more effectively.
Reporter: What will drive Coteccons’ long-term growth outlook?
We see significant headroom from three key growth drivers: urbanization, including public investment and infrastructure; industrialisation; and our Go Global strategy. Together, these pillars underpin our ambition to deliver annual profit growth of 25–30% over the medium term.
However, the focus is not simply on scale. Coteccons is moving from growth to Quality Growth, with disciplined project selection, execution capabilities, and operational efficiency as essential conditions. We prioritise projects with sound legal status, reasonable margins, a strong fit with our capabilities and risk appetite, and the potential to create sustainable economic value.
Reporter: How specifically will Coteccons improve capital efficiency?
The quality of growth matters more than scale. Coteccons is tightening discipline in project selection, strengthening working-capital control, optimizing cash flow, and improving productivity. When these elements work together, ROE can improve sustainably, cash generation becomes stronger, and our capacity to share value with shareholders is reinforced.
“Saving Mode” is a catalyst for this process. The objective is not a one-off cost-saving exercise, but to build a lasting culture of efficient resource use across the organisation, from tendering, procurement, and construction to office operations and ESG practices.
Reporter: Does the proposed 25% dividend signal a longer-term dividend policy for CTD?
The proposed 25% cash dividend is a milestone, not a commitment to pursue the highest possible payout in any single year. Over the long term, Coteccons is working toward an annual cash dividend policy of 10–15%, while maintaining a balanced approach between reinvestment needs and shareholder returns.
What we want to build is the capacity to deliver sustainable and consistent payouts over many years. A predictable dividend policy, supported by real earnings and cash flow, will make CTD more relevant to long-term investors and strengthen confidence in the quality of our growth.
Reporter: What does the roadmap to raise the foreign ownership limit to 100% mean in this context?
The roadmap to raise the foreign ownership limit to 100% will create broader opportunities for international investors to participate in Coteccons’ long-term growth story. This is not only about ownership capacity; it is also a step toward improving access to international capital, broadening our institutional investor base, and strengthening CTD’s position in the capital market.
In parallel, our Investor Relations activities will continue to focus on improving share liquidity by strengthening investor dialogue and enhancing CTD’s eligibility for international indices and global capital flows.
Reporter: What message does Coteccons want to send to shareholders as it enters this new phase?
The 25% cash dividend is more than a profit-distribution decision. It signals that Coteccons is entering a new phase defined by stronger governance, higher capital efficiency, better-quality growth, greater openness to international investors, and greater value sharing with shareholders.
From growth to quality growth, and from value creation to value sharing, Coteccons is building a platform that enables shareholders to participate in and benefit from the Company’s progress for years to come. “Saving Mode” is part of that foundation, reflecting discipline today to create greater room for sustainable growth and long-term value tomorrow./.
