AsemconnectVietnam - The surge in public investment is opening up significant growth opportunities for infrastructure construction companies. In this context, Construction Corporation No. 1 - JSC (CC1) has seen rapid expansion in its operational scale and workload, despite significant pressure from input costs and industry specifics.

The impetus from public investment fuels a strong increase in scale
The period 2025-2026 marks a clear acceleration of public investment, with total allocated capital exceeding VND900 trillion and over VND1 trillion respectively, of which transportation infrastructure accounts for approximately 40%. Compared to 2024, this scale increases by 30-50%, creating a major boost for construction contractors, especially in the transportation sector.
Benefiting from this positive trend, CC1 recorded positive business results in the first six months of 2026, with revenue reaching VND6,464 billion, a 31% increase compared to the same period, and pre-tax profit reaching VND110.7 billion, a strong 135% increase compared to the same period.
In fact, the growth momentum had already been established in the previous period. When public investment began to accelerate from 2024, CC1's revenue reached VND10,160 billion and continued to set a record of VND11,816 billion in 2025.
Alongside revenue, the company's total assets increased to VND20,287 billion as of June 30, 2026, an 18.5% increase compared to December 31, 2025, demonstrating the company's expanding scale and strengthened capabilities.
Notably, CC1 continues to increase its contract volume, with recent new contracts reaching approximately VND8,000 billion, bringing its total backlog to over VND 50,000 billion. This is an important indicator of abundant work for many years to come, while also strengthening the company's position among leading contractors. CC1's project portfolio includes many large-scale projects such as the Hanoi Capital Region Ring Road 4, along with planned projects such as the Cat Lai Bridge and the Long Hung Bridge (Dong Nai 2 Bridge),...
Profit margins face pressure in the short term.
However, the large backlog also entails high demands on construction capacity and resource management, especially in the context of fluctuating construction material prices and the continued risk of localized shortages.
Despite continued revenue and profit growth, CC1 continues to face challenges specific to the construction industry. Pressure from rising material and labor costs has resulted in low gross profit margins for businesses, especially given the need to accelerate the progress of many key infrastructure projects. In reality, accelerating construction requires businesses to simultaneously mobilize large amounts of manpower, fuel, equipment, and material supplies, leading to a sharp increase in costs in the short term.
Besides cost factors, the results recorded during the period are also affected by timing. It is known that in the construction sector, revenue is only recognized when the acceptance and payment conditions are met according to regulations. Therefore, a portion of the work completed but not yet having the relevant procedures finalized will not be reflected in revenue and is usually recorded in later periods. This means that the figures at any given time may not fully reflect the actual scale of operations.
In this context, the proactive implementation of risk management solutions by businesses like CC1, such as signing long-term supply contracts for key materials and preparing materials in advance for key projects, is considered a common approach to minimize construction disruptions. While this strategy may increase working capital and costs in the short term, it allows the company to be more proactive in terms of project timelines and minimize the impact of fluctuating material prices.
In the long term, as obstacles related to material pricing mechanisms and settlements are gradually resolved, the value of work completed but not yet recognized will be added, thereby improving CC1's profit margin. With a large backlog and continued high levels of public investment, CC1 is still considered to possess a solid growth foundation and significant room for improvement in future periods.
Source: VITIC/Bao Tai chinh – Dau tu