Commercial real estate marketing

A real estate project constructed by Hoa Binh Construction Group. (Photo: VNA)

Hanoi (VNS/VNA) – Several construction firms have reported a drop in profits in the first quarter of this year due to the COVID-19 pandemic and rising material prices .

Since the beginning of this year, the prices of construction materials on the market have increased sharply amid worries over shortages of materials and rising demand for economic recovery after COVID-19 .

Local brands have increased steel prices by 30-40 percent compared to the fourth quarter of 2020, putting great pressure on the construction industry, as steel currently accounts for 20 percent of inputs for construction work .

Not only steel, the price of cement has also skyrocketed. Since mid-April, many cement manufacturers have adjusted the price of products sold with an increase of 40,000 VND per tonne.

The prices of some other key materials such as sand and gravel are also increasing dramatically.

Facing the double pressure from the COVID-19 pandemic and rises in material prices, a series of contractors have decided to suspend construction progress to wait for market stabilisation.

Coteccons Construction Corporation (CTD)’s revenue fell from 3.5 trillion VND (151.5 million USD) in Q1 last year to 2.56 trillion VND in Q1 this year, down by nearly 28 percent.

Gross profit was 120 billion VND, down by more than 38 percent compared to 2020. The gross profit margin was 4.67 percent, significantly lower than 5.46 percent of the same period last year.

Its pre-tax profit dropped 55 percent to touch 69 billion VND. On the stock market, CTD prices have dropped and are currently being traded at 58,600 VND per share, down more than 27 percent since the beginning of the year.

The pre-tax profit of Hoa Binh Construction and Real Estate Corporation (HBC) in Q1 decreased by 12 billion VND, down 37 percent. In contrast, the gross profit margin improved from 7.7 percent in Q1, 2020 to 8.7 percent in Q1 this year.

This year, in addition to civil real estate construction, HBC has stepped up contracting for energy, industrial and infrastructure projects to increase market share.

Ricons Construction Investment JSC reported its Q1 profit decreased 28 percent to VNĐ31 billion.

Hung Thinh Incons Joint Stock Company (HTN) saw revenue in Q1 increased to 1.16 trillion VND but gross profit fell sharply to 103 billion VND.

In a new report, the Vietnam Steel Association (VSA) indicated that steel prices may continue to rise until the end of the third quarter.

On its side, the Vietnam Association of Construction Contractors (VACC) has issued a petition to the Government to soon direct ministries and branches to examine the cause of the sudden increase in steel prices./.

Former Vice Chairman of the HCM City People’s Committee Nguyen Thanh Tai (centre) at a hearing in March (Photo: VNA)

HCM City (VNA) – The People’s Court of Ho Chi Minh City on June 17 announced that the second hearing for the case of law violation involving the land lot at 57 Cao Thang street being exchanged for the land lot at 185 Hai Ba Trung street in the city will take place from July 13-19.

The hearing, which was scheduled for May 26 to June 2, was delayed to June 22 due to the COVID-19 pandemic. However, social distancing measures are being applied in HCM City until the end of June, forcing the trial to be suspended again.

In this case, Duong Thi Bach Diep, Director of the Diep Bach Duong Real Estate Co., is among the key defendants in the trial, and is charged with “fraud, appropriation of assets”.

Nine other defendants in the case are charged with “lack of responsibility, causing serious consequences,” including former Vice Chairman of the municipal People’s Committee Nguyen Thanh Tai; former Deputy Director of the municipal Department of Finance Tran Nam Trang; former Director of the HCM City Light Music Centre Vy Nhat Tao; former Director of the municipal Department of Culture, Sports and Tourism Nguyen Thanh Rum; former Deputy Director of the department Le Ton Thanh; former deputy heads of the municipal People’s Committee Office Huynh Kim Phat and Le Van Thanh; former Director of the municipal Department of Natural Resources and Environment Dao Anh Kiet; and former Deputy Director of the department Nguyen Thanh Nhan.

According to the indictment, the 185 Hai Ba Trung land lot, owned by the State, was the headquarters of the Light Music Centre under the municipal Department of Culture, Sports and Tourism. In 2007, the centre’s then director Vy Nhat Tao contacted Diep to cooperate in upgrading the headquarters.

Diep then proposed exchanging her land lot at 57 Cao Thang street for the 185 Hai Ba Trung land lot, as she owned the land lot at 179 Hai Ba Trung street and wanted to build a five-star hotel complex there.

The property swap was approved by Nguyen Thanh Tai. During the process, Diep used the land use right certificate for 57 Cao Thang as collateral to borrow money from Agribank – HCM City branch.

After being granted a land right use certificate for the property at 185 Hai Ba Trung, however, Diep did not use it to replace the collateral at Agribank to hand over the property at 57 Cao Thang to the Light Music Centre as committed. Instead, Diep used the 185 Hai Ba Trung land lot as collateral for a loan at Southern Bank (now Sacombank) and so far was not able to repay the debt.

The indictment stated that Tai permitted the property swap while he was not responsible for handling and reorganising State assets.

On March 5, 2010, Tai signed a document sent to relevant units approving the exchange of the two land lots, without any request to check and clarify the legal status of the 57 Cao Thang land lot, causing losses of State assets .

The other defendants showed a lack of responsibility in carrying out their duty, thus facilitating Diep’s fraud and appropriation of assets.

The People’s Court of Ho Chi Minh City on March 26 decided to return dossiers of the case for further investigations as new evidence and details were found./.

The CFM RISE programme by GE Aviation and Safran aims to drive revolutionary innovation for sustainable engines

The CFM RISE (Revolutionary Innovation for Sustainable Engines) programme will demonstrate and mature a range of new, disruptive technologies for future engines that could enter service by the mid-2030s.

The companies today also signed an agreement extending the CFM International 50/50 partnership to the year 2050, declaring their intent to lead the way for more sustainable aviation in line with the industry’s commitment to halve CO2 emissions by 2050.

“The relationship between GE and Safran today is the strongest it has ever been,” said John Slattery, president and CEO of GE Aviation. “Together, through the RISE technology demonstration programme, we are reinventing the future of flight, bringing an advanced suite of revolutionary technologies to market that will take the next generation of single-aisle aircraft to a new level of fuel efficiency and reduced emissions. We fully embrace the sustainability imperative. As we have always done in the past, we will deliver for the future.”

“Our industry is in the midst of the most challenging times we have ever faced,” said Olivier Andriès, CEO of Safran. “We have to act now to accelerate our efforts to reduce our impact on the environment. Through the extension of our CFM partnership to 2050, we are today reaffirming our commitment to work together as technology leaders to help our industry meet the urgent climate challenges.”

Olivier Andries and John Slattery together

Technologies matured as part of the RISE Programme will serve as the foundation for the next generation CFM engine that could be available by the mid-2030s. The programme goals include reducing fuel consumption and CO2 emissions by more than 20 per cent compared to today’s most efficient engines, as well as ensuring 100 per cent compatibility with alternative energy sources such as sustainable aviation fuels and hydrogen.

Central to the programme is state-of-the-art propulsive efficiency for the engine, including developing an open fan architecture. This is a key enabler to achieving significantly improved fuel efficiency while delivering the same speed and cabin experience as current single-aisle aircraft.

The programme will also use hybrid electric capability to optimise engine efficiency while enabling electrification of many aircraft systems.

The programme is being led by a joint GE/Safran engineering team that has laid out a comprehensive technology roadmap including composite fan blades, heat resistant metal alloys, ceramic matrix composites (CMCs), hybrid electric capability, and additive manufacturing.

The RISE programme includes more than 300 separate component, module, and full engine builds. A demonstrator engine is scheduled to begin testing at GE and Safran facilities around the middle of this decade and flight test soon thereafter.

The original 1974 framework agreement creating CFM International as a 50/50 joint venture between the two aircraft engine manufacturers redefined international co-operation and helped change the course of commercial aviation.

The partnership was renewed in 2008 for the launch of the LEAP engine programme. Today, CFM is the world’s leading supplier of commercial aircraft engines with a product line that serves as the industry benchmark for efficiency, reliability, and low overall cost of ownership. More than 35,000 CFM engines have been delivered to more than 600 operators around the globe, accumulating more than one billion flight hours.

Safran is an international high-tech group, operating in the aviation, defense, and space markets. It has a global presence, with 79,000 employees and sales of €16.5 billion ($19.7 billion) in 2020. Safran undertakes research and development programmes to maintain the environmental priorities of its R&T and Innovation roadmap.

GE Aviation, an operating unit of American tech giant GE, is a world-leading provider of jet engines, components, and systems for commercial and military aircraft. GE Aviation has a global service network to support these offerings.