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MINISTRY OF CONSTRUCTION
CONSTRUCTION CORPORATION 1
COMPANY LIMITED
Official Letter:/TCT - NCPT&ĐT
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
Ho Chi Minh City, Jan 16th, 2015
REPORT
PRODUCTION, BUSINESS, DEVELOPMENT AND INVESTMENT
STATISTICS OF 2014FOR CONSTRUCTION CORPORATION 1 COMPANY
LIMITED
To: MINISTRY OF CONSTRUCTION
A. PRODUCTION, BUSINESS AND INVESTMENT RESULTS FOR 2014
I. General Evaluation.
Although 2014 was a hard and arduous year for the construction industry due to the
recession of the real estate market and the economy as a whole, CC1, thanks to the
competency and unity of the management team and staff, has triumphed over numerous
challenges and hurdles to achieve these results:
Unit: billion dong
Content 2014 Plan
2014
Actuality
Percentage (%) of 2014
Plan to
2014 Plan 2013 Act.
I Total Business Value 8,415 9,677 115% 123%
1 Construction value 4,426 5,887 133% 148%
2
Industry production and
building materials value
1,426 1,683 118% 124%
4 Other businesses value 2,555 2,100 82% 84%
3 Consultancy value 8.00 6.48 81% 154%
II
Investment and
Development
1,003 1,119 112% 313%
III Financial Indexes
1 Revenue 7,538 8,174 108% 113%
2 Before-tax profit 192 320 167% 170%
3 Payable to State Budget 602 810 135% 143%
4 Owner’s equity 3,293 3,362 102% 105%
5 Total liabilities 9,370 11,836 126% 116%
6 Total receivables 4,173 4,044 97% 89%
Note: 4,426 means four thousand four hundred and twenty six. 8.00 means eight point zero.

2. 2/14
II. Evaluation of 2014’s plans
2.1 Productionand business indexes.
2.1.1 Construction:
The total construction value of CC1 for 2014 is 5,887 billiondong, which is a 33%
increase from 2014’s plan, and a 48% increase from 2013’s actual output. In addition, the
total actual construction value of the parent company exceeds plans by 54%:
In addition to having securely transferred to investors various works such as the new
Đồng Nai Bridge, Hóa An Bridge, Bông bridge, dormitory complexes in Ho Chi Minh, Can
Tho, Da Lat, Tân Hòa – Lò Gốm street and channel reconstruction, Administrative Office
of Lâm Đồng, CC1 (the parent company) has also pay due attention and resourcesto execute
large scale projects like Thủ Đức Hydropower Plant III, PoliceStation of Ho Chi Minh City,
Mông Dương Thermal Power Plant, Xuân Lộc General Hospital, Nghi Sơn Oil Refinery.
Currently, CC1 has also initiated a few large scale projects such as Hồ Chí Minh City
Children’s Hospital, Vĩnh Tân Thermal Power Plant 4, Đà Nẵng- Quảng Ngãi Highway
(Package 1A), Metro Line 1 (Package 1B – Hồ Chí Minh City Opera Theater Station & Ba
Son Station), Hải Phòng Urban Traffic Improvement Project (Package CW3A & CW4A),
etc. The output value gained from these works does not only help CC1 to exceed its
construction plans but also is a major contribution to the aggregate production and business
plan for 2014.
-
1,000
2,000
3,000
4,000
5,000
6,000
4,426
1,610
1,279
1,537
5,887
2,479
1,522
1,886
Unit: billion dong
115%
%
133%
Plan
Actual
154%
d
119%
123%
Construction
Value
Parent
Company
Subsidiary
Companies
Associated
Companies

3. 3/14
2.1.2 Industry production and building material:
The aggregate (total) value of industry production and building material for 2014 is
1,683 billiondong, which is an increase of 18% from 2014’s plans, and a rise of 24% from
2013’s actual figures:
Along with the construction field, industry production and building materials is
another primary sector of CC1, with staple products like electrical energy, pre-mixed
concrete, concrete sheet pile, pre-casted concrete, and crushed stone of varieties. CC1 has
also invested in new pre-mixed cement production lines (which include mixing stations,
transportation, generators, pumping machinery) to increase the supply output for highly
important projects. As a result of that, industry production and building material value of
the parent company have exceed 92% from 2014’s plans. This upgrade of machinery helps
both to provide for CC1’s own projects and to meet with the demand of the market for
building materials. In addition, the electric energy production sector (which exceeded plans
by 40%), which is primarily fueled by Đakr’tih Hydropower Plant, has also contributed
greatly to CC1’s output for the year 2014.
2.1.3 Other businesses.
At present, the aggregate (total) output value from other businesses of CC1 comes
mostly from these sectors: Trading of real estate (mostly from associated companies),
trading of building materials, services and office leasing at the Sailing Tower building
(which is the parent’s company headquarter).
The aggregate output value from other businesses in 2014 of CC1 is 2100 billion
dong, which is 82% of 2014’s plans, and 84% of 2013’s actual value. The reason for this
failure to reach 2014’s targets is that the real estate market is still a long way from full
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
1,426
119 149
1,158
1,683
228
141
1,313
Unit: billion dong
118%
113%
192% 95%
113%
Plan
Actual
Industry
production &
Building Mat.
Parent
Company
Subsidiary
Companies
Associated
Companies

4. 4/14
recovery, despite showing promising sights. This has adversely affected the business
activities of CC1’s associated companies (which collectively take up 60% of the aggregate
output of CC1). However, for the parent company, output value of other businesses (trading
of building materials for CC1’s works and commercial activities regarding the officesof the
Sailing Tower building) experienced a 66% rise compared to 2014’s plans. The aggregate
output value of CC1 is detailed below:
2.1.4 Construction Consulting.
Despite not taking up a large percentage of the total value, construction consulting
have greatly contributed to the larger sectors of the company, namely Construction and
Project Investment. The aggregate value of this sector is 6.48 billion dong, which is
81% compared to 2014’s plans. The percentages of the sector is detailed in the following
chart:
2.2 Investment and Development.
-
500
1,000
1,500
2,000
2,500
3,000
2,555
511
211
1,833
2,100
849
79
1,173
Unit: billion dong
64%
Plan
Actual
Other businesses
value
Parent
Company
Subsidaries
Companies
Associated
Companies
82%
166%
37%
64%

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The aggregate output value of Investment and Development of CC1 in 2014 is 1,119
billiondong, which is an increase of 12% from 2014’s plans, and a 213% increased from
2013’s actual value.
CC1’s investment activities are mostly related to the parent company’s projects such
as the new Đồng Nai Bridge and bridge approaching roads (GĐ2), Hạnh Phúc Urban Area,
and general equipment upgrade (Mê Kong Company’s Batching plants and machinery,
CC1’s pile drivers). Furthermore, the value of the Investment and Development Sector of
the associated companies is 242 billion dong, which exceeds 2014’s plans by 8%. Most of
the investment is spent on housing and urban complexes such as the apartment building in
ward 2, Bình Thạnh District, Tân Hương Apartment Building, Chương Dương Home
affordable housing, etc. Even though the growth rate for 2014 is positive, the aggregate
value of investment of the associated companies (which deal mostly in equipment upgrade)
is still substantially less than those of previous years. Details are given in the following
graph:
-
200
400
600
800
1,000
1,200
1,003
780
-
223
1,119
854
23
242
Unit: billion dong
Investment &
Development Value
Parent
Company
Subsidiary
Companies
Associated
Companies
112%
110%
108%
Plan
Actual

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2.3Financial actives.
2.3.1 Financial plans.
As can be seenfrom the graph, CC1 has completed its plans for 2014, with details as
follows:
- Revenue: An increase of 8% from 2014’s plan, and 13% from 2013’sactual value
- Profit: An increase of 67% from 2014’s plan, and 70% from 2013’s actual value
- Other indexes include: Owner’s equity, payable to State’s budget, profit ratio of
owner’s equity.
Thanks to CC1’s excellent bidding performances, which in turn have led to many
large projects of 2014,all of the plans for2014 was successfully realized. As each and every
project directed and transferred appropriately, payback was always quickly secured.
Due to the flexible and efficient financial framework of the parent company, CC1
has gained the trust of major financial institutions such as SHB, Vietinbank and BIDV
through comprehensive and strategic cooperation agreements.
Furthermore, strictadherence to the goals of financial restructuring has brought about
positive improvements to the finance of the company.
2.3.2 Flexible funding structure through financial leverage:
In 2014, CC1 has achieved these important milestones:
- Divested An Thịnh I&C JSC due to inefficient business activities; withdrew
funding from Điện Nhơn JSC, Đô Lương cement company.
- Increased funding for successful member companies such as Việt Number One
Construction JSC, Việt Quang Number One Construction JSC.
- 2,000 4,000 6,000 8,000 10,000 12,000
11,836
4,044
810
3,362
320
8,174
9,370
4,172
602
3,293
192
7,538
102%
126%
108%
97%
(167%)
(135%)
Unit: billion dong
Receivables
Liabilities
Revenue
Owner’s
Equity
Profit
Payable to
State’s budget
Plan
Actual

7. 7/14
- Performed organizational restructuring and provided financial assistant to
member companies which, despite having prioritized on sectors matching CC1’s
development plans, were struggling financially. Examples include Miền Trung
Construction and Building Materials Trading JSC, Biên Hòa Concrete,
Construction and Trading JSC.
- Increased fund raising, especially low-interest funds for long term investment
projects and present debt restructuring (for the parent company and 02 member
companies).
2.3.3 Costs Management:
CC1 has implemented a more coherent budget projection process with clearer
procedures and a complete cost estimating system. Along with that, CC1 also performed
regular independent auditing to avoid errors and lack of information in its yearly reports.
In addition, CC1 has paid due attention to its associatedcompanies by assisting a few
of them in cutting down on loss: Biên Hòa Concrete, Construction and Trading JSC, Việt
Tổng Number One Construction JSC, Miền Đông JSC.
With the assistance from CC1, many associated companies have achieved
outstanding business results: ĐakR’tih Hydro Power JSC, Construction JSC No. 5, Chương
Dương JSC, Construction and Trading JSC. This, of course, is another major contribution
to CC1’s exceptional financial results of 2014.
In addition, CC1 has also performed assessment procedures on:
- Financial regulations for one Member Company Limited.
- Public debt management.
- Decentralized finance management process of various departments.
2.3.4 Financial Administration:
In the year 2014, CC1 has accomplished these tasks:
- Provided adequate Administration training for all accountants, especially for
those from member companies that were severely affected by the recent
depression.
- Set up constant business forecast system in every departments to provide data to
better form business development plans.
- Acquired proficient use of cash flow measuring tools and monthly budget
balance.
2.3.5 Financial activities from equitisation:
CC1 has initiated assets inventory and financial check to quantify and evaluate its
enterprise value on 6.30.2014 and to develop plans and methods for equitisation, which is

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also progressing well as planned. This is a valuable opportunity to bolster the administrative
capability of CC1’s staff and to secure a safe funding structure for the company.
Based on business forecasts for the upcoming year, CC1’s financial condition is
expected to be on the rise in 2015 owning to the equitisation process and ADB’s loan
structure. CC1 will have the capacity to accelerate the restructuring process, and thus
increasing its bidding ability and expand its construction field to better cultivate bidding
activities and competitive advantage.
Appropriate business strategies, favorable investment projects and a healthy financial
expectation will bring about high profit for CC1 in the short and long future. The company
will also be capable of dynamically reacting to changes of the economy, thus attracting
larger funds from the stock investment market.
2.4 HR Management, legal issues, and employee’s salaries of 2014
2.4.1 Quantity and Quality of employees:
Currently, CC1 has approximately 8,450 employees, 6,516 of which are direct
employees, and 1,934 are indirect.
2.4.2 Employee training:
The company frequently offer employees the opportunity to enroll in expertise
training programs as well as management and administrative programs, which of course
will also be of great benefits to the new developing plans for CC1.
2.4.3 Employee Administration:
The Ministry of Construction have appointed a new board of director members, and
also a new Deputy General Director for CC1.
In addition, CC1 has also replaced its representative for State’s Funding in a few
member units due to violations in business procedures which had led to financial risks to
the company.
2.4.4 Legal work:
Frequently updated Governmental documents related to business. CC1’s production
and business activities all follow the regulations and policies of the State.
2.5 International Management Systems in 2014:
At present, CC1 has composed and established the following international standards:
- ISO 9001:2008 : Quality Management System
- ISO 14001:2004 : Environmental Management System
- OHSAS 18001:2007: Occupational Health and Safety Management System
In addition, C1 has also developed the Environmental Sustainability Management
System (ESMS), which incorporates the 03 systems above: ISO 9001:2008, ISO

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14001:2004, OHSAS 18001:2007, 08 IFC regulations and 03 requirements from ADB.
Therefore, CC1 is one of the first companies in Vietnam to establish this management
system in its business activities.
These recent changes show CC1’s initiatives in reducing occupational,
environmental, as well as health hazards, which both demonstrate CC1’s intention to give
back to the community and to transcend the company into the global market, especially with
funding from international institutions like ADB and the World Bank.
2.6 Youth Union activities in2014.
CC1’s Labor Union includes 24 subsidiary branches, which total to 3,044 members,
and 689 of which are female.
The primary focus of the Labor Union and Youth Union in 2014 is to promote and
support political education for employees in terms of common interest and benefits to the
company as a whole. The motto for this year is “For the Company’s sustainable
development”.
In 2014, the Union, under CC1’s Communist Party, has cooperated with the General
Director to create various events and competitions to encourage quality and safe work
ethics for these projects: Nghi Sơn Oil Refinery, Bông Bridge, Hòa An Bridge, New Đồng
Nai Bridge and bridge approaching roads, Thử Đức Water Factory.
CC1 also organized the Excellent Janitor Competition, which was very well received.
The competition encouraged employees to work safe and efficiently.
During March of 2014, with the approval of the Party, Board of Directors, and the
General Director, 3.5 billion dong was given to build Nậm Pồ Bridge in Sam Lang Village,
Nậm Pồ district, Điện Biên province. 149 million dong was also raised from one day’s
salary of CC1’s employee, which demonstrates how well the fund raising event went.
Also, 221 million dong was also raised from CC1’s employees to support the
fishermen and marine police at the disputed territory.
Furthermore, the Labor Union has also visited paid tribute to the heroic Vietnamese
mothers in Đức Phổ District, Quảng Ngải Province. In cooperation with the Construction
Labor Union of Vietnam, 101 supporting gifts (totals to 50.5 million dong) were given to
less fortunate employees.
From 8.23 - 9.30.2014, CC1’s Labor Union has organized a Sports Day to celebrate
the 69th anniversary of Independence Day 9.2, and 35th anniversary of the company, which
attracted 250 athletes as well as company employee cheerleaders. The events avaible
included: Mini Soccer, Tennis, singing. The events fostered athleticism, sportsmanship,
teamwork and bonding between employees.
In conclusion, the activities of the CC1’s Labor Union in 2014 was greatly
successful, and thus have made the Labor Union an increasingly integral and important part
of the company.

10. 10/14
2.7 Restructuring:
Since Decision 929/QĐ-TTg, dated 7.17.2012, on restructuring state-owned
enterprises – especially on corporations and companies in the period from 2011 to 2015,
CC1’s restructuring plan has been approved by the Ministry of Construction through
Decision 49/QĐ-BXD, dated 05.15.2013. To date, Asia Development Bank (ADB) has
approved a loan of USD109,000,000 (4 millionfrom ADF, and 105 million from OCR)
to CC1 through the loan agreement signedand negotiated in November of 2014.
In order to reorganize and increase the production budget of its member companies,
CC1 has reduced its budget contribution for the non-controlled companies such as Việt Hòa
Number 1 Construction JSC (down to 36%), Việt Sơn Number 1 Construction JSC (36%),
Việt Tổng Number 1 Construction JSC (36%), and is initiating the bankruptcy procedure
for Lenex JVC. Also, CC1 has written a report to the Ministry of Defense about rechecking
the restructuring proposal:
- Increased authorized capital to above 51% for companies with high growth
potentials and contributions like Đồng Nai Bridge Construction & Investment
JSC, Construction JSC No. 14, Việt Hưng Number One Construction JSC, Việt
Nguyên Number One Construction JSC, Việt Quang Number 1 Construction JSC
- Made investment on Cam Lộ - Túy Loan BT Investment Company Limited (23%
chartered capital).
- Made investment on Vina PSMC Pre-cast Concrete JSC (70% chartered capital).
As for the equitisationprocess, CC1 has completed its net worth self-assessment
and is waiting for approval from the Ministry of Construction and the Prime Minister. The
actual process is expected to start in January, 2015, which will include these milestones:
- Initial Public Offering in March, 2015.
- First meeting of major shareholders in June, 2015.
- Settlement and transference between a State-owned company and a Joint Stock
Company in July, 2015.
III. Limitations and weaknesses.
Apart from its achievements in 2014, Construction Corporation 1 Company Limited
recognizes that many weaknesses still exist, and room for improvement are plentiful in
terms of its production and business activities:
1. Slow, inefficient administration and management in a few projects.
2. The material trading department of CC1 has room for improvements, especially in
terms of keeping up with current trends and patterns of the market.
3. Inefficient use of funding in a few subsidiary units, partly due to the lack of influence
of CC1’s representatives there.
4. In terms of financial activities:

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a. Low owner’s equity in the parent company. Investment in newer projects of
associated companies can be substantially improved.
b. In few member companies, administrative and leadership is still lacking, which
led to slow business and even losses to the State’s funding.
c. Wasteful and inefficient use of asset in few subsidiary companies. Funding
comes mostly from banks loans, which leads to high financial pressure.
d. Due to having made risky investments in real estate and non-specialized
sectors, a few member companies have accumulated due debt.
5. In terms of structures
a. Rather inefficient coordination for human resources between CC1 and member
companies.
b. Human resources development still depends on new investing and bidding
projects
c. Low stability for labor work due to the constant moving nature of construction
work.
d. Shortage of highly skilled and specialized employees who can take on
managerial roles; generally lackluster language aptitude, which can be
detrimental to CC1’s future developments.
B. Production, business and investment plans for 2015.
The following plans for 2015 are made according to 2014’s actual results, in order to
maintain and improve upon the current growth rate of the company. Also taken into account
are the financial capability of CC1 as well as member companies, large projects
transferrence since 2014, and Vietnam’s GDP growth reports:
Unit: billion dong
TT Main indexes
2014
Actuality
2015 Plan
2015 Plan
over
2014 Actuality
A B 1 2 3 = 2/1
I Total sales value 9,677 10,645 110%
1 Construction value 5,887 6,645 109%
2 Industry and material trade value 1,683 1,781 104%
TT Main Indexes
2014
Actuality
2015 Plan
2015 Plan
over
2014 Actuality
A B 1 2 3 = 2/1
3 Other businesses value 2,100 2,209 119%

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4 Consultant value 6.48 10.00 154%
II Financial indexes
1 Revenue 8,174 9,197 113%
2 Before-tax profit 320 389 122%
3 Payable to State’s budget 810 943 116%
4 Owner’s equity 3,362 3,441 102%
5 Total liabilities 11,836 11,234 95%
6 Total receivables 4,044 4,391 109%
III Total investment value 1,119 1,928 172%
In order to realize its plans for 2015, CC1 will:
1. Focus on executing and transferring projects from 2014 such as Ho Chi Minh City
Police Station, Nghi Sơn Oil Refinery, Vĩnh Tân 4 Thermal Power Plant, Đà Nẵng –
Quảng Ngãi Highway (Package 1A), Hải Phòng Urban Traffic Improvement Project
and newer projects like Duyên Hải 3 Thermal Power Plant.
2. Continue to extend investment funding, and to complete these projects: The new
Đồng Nai bridge and 02, Hồ Chí Minh Street, La Sơn – Túy Loan segment, CC1-
Jovita Apartment Complex Hạnh Phúc Urban Zone, Ward 22 Bình Thạnh District
Resettlement Zone, Tân Hương Apartment Complex…
3. Continue to improve employees’ ability in the bidding marketing and project
managing sectors, especially in training professional project managers; continue to
participate in bidding large and well financed projects.
4. Pay adequate attention to the payback process to minimize debs from banks, budget
costs and financial costs.
5. Maintain a stricter supervision on the revenue and costs of investment projects to
maximize their output, payback rate, and accumulated profit.
6. For projectsthat are still in the preparation or investment phase, CC1 will ensure that
regulations are followed, while reports and assessments are timely made.
7. Continue to partner up with international firms to not only improve general managing
abilities, but also to build a reputation for CC1 in the international market, especially
in South East Asia (Cambodia, Myanmar and Malaysia).
8. Maintain a strict adherence to management systems for occupational and
environmental health (ISO 9004, ISO 14001, OHSAS 18001), as well as regularly
update them to minimize damages to the environment and CC1’s employees.
9. Continue with the restructuring process with ADB’s assistance on improving State-
owned companies.

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10.Increase the Party’s involvement in the leadership process of CC1’s production and
business activities, as well as encourage more cooperation between Union
organizations and CC1 to ensure the maximum rights and efficiency of employees.
To conclude, this is a report on the production and business activities of Construction
Corporation 1 Company Limited in 2014, as well as detailing out its plan for 2015.
Construction Corporation 1 Company Limited is greatly appreciative of guidance
and advice from the Ministry of Construction to thrive through the economic depression.
Sincerely./.
CONSTRUCTION CORPORATION 1
COMPANY LIMITED
Nơi nhận:
- Như trên.
- HĐTV CC1 (để b/c);
- Lưu P.NCPT&ĐT, VP.TCTy.