VNRE - Kumho Engineering & Construction is making moves to normalize its business as quickly as possible. The Korean builder is in fact seeking ways to do so through their foreign business which they resumed this year for the first time in 22 years.
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he builder’s foreign business is mostly focused in Vietnam at the moment.It has already embarked on constructing Times Square, a luxurious multi-purpose building for residential and commercial uses in Ho Chi Minh City, after signing a formal contract with the Times Square Investment Joint Stock Company on April 26.
Alongside Times Square, the Korean builder is expecting to win orders for four more major projects in Hanoi. They are construction of the Kinhbac Hanoi Tower; the Star City Center; the Star City Reban Le Van Luong and the Novotel Hanoi.
Kumho E&C’s Vietnam projects are notable in that the builder found a way to stabilize its business through them.
Alongside the five above mentioned projects, the builder is carrying out constructions for apartments Sunrise City Plot V and Sunrise City Plot W in Ho Chi Minh City’s new residential area Phu My Hung.
Such opportunities overseas are especially valuable considering the local housing market’s condition, which is likely to remain dull for the rest of the year and thus make it tough for builders to make a breakthrough.
The builder made its special alliance with Vietnam largely thanks to its spreading advanced construction culture there, rather than just focusing on making profits. In addition to the construction business, the company is actively engaged in community services such as building homes and offering scholarships for the poor, it said.
“The success of foreign projects depends on whether we can form a solid partnership based on mutual trust with our counterpart,” said Jang Bok-sang, the head of Kumho E&C Operation and Management Division.
The Kumho Asiana Plaza in District 1, Ho Chi Minh City, which was built last year played a critical role in introducing developed construction culture to Vietnam. Alongside the building itself, the builder also organized eye-catching fence designs as well as an eco-friendly surrounding environment.
The $11 billion-worth Times Square will be established on Nguyen Hue Street in Ho Chi Min City, which is one of the city’s hottest shopping areas. The 38-story building will consist of a hotel with 315 guest rooms, 108 apartments, offices and commercial facilities.
The construction of Times Square is expected to cost over $101 million.
Since winning the Times Square contract, Kumho E&C has also signed a LOI with the Kinh Bac Urban Development Joint Stock Corp to build the Kinhbac Hanoi Tower. The two companies just have to agree on the final construction cost.
A $5,000 high-end multi-purpose construction, the Kinhbac Hanoi Tower will become Hanoi’s biggest finance tower when completed, according to the builder.
Kumho E&C is expecting to win two more orders in Hanoi. It recently signed LOIs for constructing the Star City Le Van Luong and the Novotel Hanoi.
“Our company has now become stabilized unlike when we announced our debt-workout plans (early this year) and thus has grown confidence and a sense of unity internally for winning more orders abroad,” a Kumho E&C spokesperson said.
The builder said it aims to win overseas orders worth 80 billion won this year.
“We think there will be no problem for us to accomplish our goal figures considering the strong company reputation we’ve been building in Vietnam until now,” the company spokesperson said.
The Korean builder is also considering extending its foreign business in the Middle East where its name has been gradually gaining acclaim over the years. It plans to start off in the United Arab Emirates, where its plans to participate in an airport construction project.
Reported by Koh Young-aah (youngaah@heraldm.com)
The Korea Herald
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