Japanese fund signed as Fecon strategic investor

15:00 | 13/06/2014
Vietnam’s one of leading contractors Fecon Foundation Engineering and Underground Construction JSC today signed a strategic investment and cooperation deal with the Japan Southeast Asia Development Fund of the Development Bank of Japan (DBJ).

Under the deal, DBJ will spend VND195 billion ($9.3 million) buying Fecon’s convertible bonds for the year 2014 to become the latter’s strategic investor.

Fecon will use the money to innovate the firm’s equipment and strengthen its construction capability at major on-going projects, including Nghi Son petrochemical plant, Thai Binh 1 thermal power plant, Danang – Quang Ngai expressway, Kyoei Steel Ninh Binh plant and many other projects in the coming time.

Not only participating in financial investment, DBJ is also committed to supporting Fecon to improve management capacity, broaden market and strengthen the relationship with Japanese investors in infrastructure and other foreign invested projects in Vietnam.

Besides, the Japanese partner also mulls introducing top reliable partners from Japan to help Fecon access to and make the most of modern technology transfer (especially in its core field of foundation construction). The access to state-of-the art technologies from Japan will help Fecon boost capability in core activities, effectively serving to the company’s sustainable development target.

DBJ, entirely owned by the Japanese government, reported $172 billion in total asset value and $3.6 billion in total incomes last year.  DBJ has been operating in Vietnam in the 1990s through providing loans to and engaging in share investments into Vietnamese enterprises.

Last year, Fecon scored VND1.2 trillion ($57 million) in the total revenue and more than VND116 billion ($5.5 million) in net profit. 2014 is the second consecutive year Fecon was listed among top 50 businesses in Vietnam’s stock market by Forbes Vietnam magazine.

By By Chi Cong

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