09:54 | 23/04/2019 Companies
Fecon Corporation on April 4 signed a strategic cooperation agreement with Japan’s Raito Kogyo Company Limited.
|Fecon Corporation signed a strategic cooperation agreement with Japans Raito Kogyo Company Limited - Photo: VNA|
Accordingly, Raito Kogyo Company, one of the largest Japanese geotechnical contractors, will invest in 19 percent of Fecon, which operates in foundation engineering and underground construction, and 36 percent of Fecon’s affiliate Fecon Underground Construction Joint Stock Company.
The two companies will cooperate in developing transport infrastructure projects, urban railway projects and underground drainage system projects in Hanoi and HCM City as well as land-slide prevention projects in Vietnam and other Southeast Asian countries.
In addition, Fecon and Raito will cooperate in introducing slope stabilisation technology, which has already proved successful in Japan, in Vietnam.
Fecon said that this technology will help prevent the collapse of slopes, especially of construction work in mountainous, river-side and coastal areas which are at risk of collapse due to the impact of climate change.
In September 2016, the two companies founded a joint venture, Raito – Fecon Initiative Geotechnical Engineering Joint Stock Company. Fecon and Raito started cooperation in June 2015 with an agreement to cooperate in implementing underground work for Metro Line 1 in HCM City.
Fecon with 17 member companies reported revenue of 2.8 trillion VND (120.2 million USD) and after-tax profit of 252 billion VND in 2018, representing a rise of more than 42 percent over the previous year.
In 2019, the company targets to reach 4.2 trillion VND in revenue.