Workers from Cottecon seen on site in District 1, HCMC. Photo by Coteccons. 

The fierce competition in civil construction and the resultant razor thin profit margins have prompted it to expand into infrastructure, energy and asset management, construction giant Coteccons said. 

At its annual general meeting on Monday Bolat Duisenov, its chairman, said: "Ninety nine percent of the company's business is closely related to civil and industrial construction. As a result, our business depends a lot on ups and downs in the real estate market. [Such] dependence will slow down our growth."

Phan Duy Huu Quoc, deputy general director, too warned that dependence on a single business field could cost Cotecons its industry leadership.

He pointed to the fierce competition in civil and industrial construction, which has dragged profit margins down to an undesirable 3-5 percent.

Besides, the management saw enormous opportunities for the company outside the construction industry, he said. "We have worked with customers who have already demanded our diversification."

Coteccons set sales and after-tax profits of VND17.4 trillion and VND340 billion for 2021, representing increases of 20 percent and 2 percent from last year.