CHINA CONSTRUCTION (S.E.A) CORPORATION LTD

CHINA CONSTRUCTION (S.E.A) CORPORATION LTD (CÔNG TY TNHH XÂY DỰNG TRUNG QUỐC – ĐÔNG NAM Á) is a foreign direct investment (FDI) enterprise and the Southeast Asian branch of the China State Construction Engineering Corporation (CSCEC). Officially registered on March 5, 2007, under Business ID 0301218401, the company’s head office is located at No. 801 Nguyen Van Linh Avenue, Tan Phu Ward, District 7, Ho Chi Minh City, with additional branches in Bac Giang Province and Long An Province.

A Key Player in Civil and Industrial Construction

The company has operated in Vietnam for over 18 years and specializes in civil and industrial construction, including infrastructure, roads, railways, and large-scale development projects. It also provides architectural consultancy, property trading, and real estate brokerage, and manufactures concrete, cement, and other construction materials. As a subsidiary of the South Construction Company of Department II—Chinese Ministry of Construction, CHINA CONSTRUCTION (S.E.A) represents China’s strategic investment presence in Vietnam’s infrastructure and real estate development sectors.

Leadership and Ownership

The company is led by Mr. Ma X. Y., who serves as Chairman and represents the sole shareholder — the South Construction Company of Department II, a state-owned entity under the Chinese Ministry of Construction. This 100 percent Chinese ownership ensures access to financial resources and technical expertise from one of the world’s largest engineering conglomerates. The company employs approximately 200 staff, primarily engineers, project managers, and administrative personnel.

Financial Performance and Risk Indicators

As of December 31, 2023, the company reported total assets of USD 122.8 million, a 10 percent decline from 2022, and equity of USD 10.25 million, down 5.09 percent year-on-year. Sales rose sharply by 21.74 percent, reaching USD 104.97 million, while net profit plunged by 90.66 percent, to only USD 33,693. Despite higher revenue, the company’s profitability remains extremely low, with a profit margin below 0.04 percent, suggesting cost overruns, delayed projects, or thin contract margins.

Working capital declined by 18.1 percent, to USD 11.22 million, indicating tighter liquidity conditions. The company’s financial results show a pattern of rapid revenue growth but unstable earnings — a sign of fluctuating project profitability and high operating expenses, both common in large-scale contracting businesses.

Operational Assessment and Risk Considerations

While the company continues to operate actively in Vietnam, the steep drop in profit despite growing revenue raises concerns about project efficiency, cost management, and receivables recovery. Construction firms in Vietnam often face delayed payments and exchange rate fluctuations, both of which may have contributed to declining net results.

Moreover, with equity representing less than 10 percent of total assets, the company’s financial leverage remains high, leaving a limited buffer for absorbing project-related risks. The reliance on state-backed contracts and a single foreign shareholder structure also increases exposure to political and market risks tied to bilateral investment conditions.

Evaluation Summary

From a credit and business risk standpoint, CHINA CONSTRUCTION (S.E.A) CORPORATION LTD shows strong operational capacity but weak profitability and high financial volatility. Its revenue base and long-term presence in Vietnam underscore commercial reliability, yet the very low profit margin and reduced liquidity warrant close monitoring.

For potential partners, suppliers, or financial institutions, this company should be approached as a large but low-margin contractor, where project-based due diligence, contract performance monitoring, and payment verification are essential to mitigating exposure.