DEVELOPMENT STRATEGY OF POWER CONSTRUCTION JOINT STOCK
• Business name: POWER CONSTRUCTION JOINT STOCK COMPANY No.1
• Head Office: 18 Ly Van Phuc, Dong Da District, Hanoi, Vietnam.
Office work: CT2 Building, 583 Nguyen Trai Street, Thanh Xuan District,
Telephone: (+84-4) 3845.6329; Website: http://www.pcc1.vn
• Capital: 140 billion VND (One hundred and forty billion).
The Power Construction Joint Stock Company No.1 - formerly known as Enterprise
PCC1 construction lines and stations under the Ministry of Power and Coal was
founded March 2, 1963. When the newly formed company is the only active in the
construction field lines and power stations across the country.
According to the strategic planning of
the development of national capacity in
each stage of development of the
country, the company was in turn
named after the company line and
company line and station 1, electrical
construction company in decision No. 1
and 1263/QD-TCCB April 5, 2005 of
Photo 1. Line construction of PCCC1
construction Company 1 approved equalization plan and transformed into joint-stock
companies 1 electrical construction, have business registration number: 0,103,008,651
by the Department of Planning and Investment of Hanoi July 20, 2005.
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With over 50 years of establishment and development of the next generation class of
the Company has made the bold mark on the entire network system operators and
transmission of electrical energy distributed by the National Project, transmission line
and substation construction of large-scale, high-quality electrical power source to bring
all parts of North, Central and South of the country, from urban to remote rural,
mountainous, remote island and on the mountains, plains of Laos.
Over the years the business sector and its capacity to assume the company has done
thousands of kilometers completed DDK 500kV, 220kV DDK tens of thousands of
km, 110kV, hundreds of thousands of kilometers of 35kV DDK Hey, completed many
projects 500kV substation projects up to a total capacity of tens of thousands of MVA,
telecommunications systems, fiber optic lines. Manufacturing , installing tens of
thousands of tons of structural steel standard , non-standard ... Training the
management staff , technical staff highly qualified team of skilled workers capable
inherit and develop the skills to be responsible for managing and implementing largescale projects , particularly the nature of national importance.
With the company's contribution to the strategic development of national power in
recent years , the Company has been granted the many honors including the Medal of
Independence -class , second class , third class ; Labor Medal second , third ; and
many other rewards of ministries and people's committees of provinces and cities.
The company has the capacity machinery, construction equipment is equipped enough
to meet the simultaneous implementation of several projects lines, power stations both
large domestic and international scope.
The company has financial strength by working capital and self- confidence are
committed to providing the credit of the Bank for Investment and Development of
Vietnam and credit institutions such as the Petroleum Finance Company ... when
necessary enough to meet the service of implementing large-scale projects , ensuring
always control the progress and quality of projects.
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To always improve management capacity building quality projects, construction works
carried out by the Company in addition to regular retraining and advanced training of
qualified managers, technicians, the company has been operating quality management
system and has been certified quality management ISO 9001-2008.
With a long history and a long tradition of over 50 years , with experience & capacity
above basic , with the motto of company leaders always improve : "Quality - Progress
- Cost - Beauty Industry " JSC electrical construction 1 - English acronym called "
PCC1 " has always been striving leading enterprises in the field of construction lines
and power stations in Vietnam.
Construction of the transmission lines and substations, power projects, industrial
buildings, civil infrastructure, transportation, irrigation, telecommunications;
Production of business equipment, structural steel, metal, building materials, accessory
materials and electrical works, construction equipment manufacturing, non-standard
Manufacture of fabricated steel poles, hot-dip galvanizing and metal structures serving
residential and industrial;
As reported by the Ministry of Industry and Trade, after 15 years of implementation
(from 1998-2013), the program of rural electrification has changed the face of rural
Vietnam. From dilapidated electrical systems, power supply shortage for 87% of
households, by 2013 over 98% of households, of which 97.5% live in rural households,
equivalent to 15.2 million household’s power was used.
However, at present 91 communes exist across the country without electricity, 550,000
households do not have access to electricity, this goal since 2020, the Ministry of
Industry and Trade, EVN and localities continue to implement programs rural
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electrification, striving 2015 basically communes nationwide grid to the town center, by
2020 most of the rural households have electricity.
Besides, Vietnam is still in the process of improving the system of electricity for
industrial and other sectors. Therefore, the electrical construction industry is still in the
development stage. Research forecast to grow to the year 2020 to 2025.
From the above statement, PCCC1 Company has been strategically built to meet the
growth of the company in 2020 and later years. The company has made to the
development of other sectors (in section III) to catch the trend of development.
According to unofficial statistics, electrical construction industry now has more than
100 enterprises engaged in construction activities. This is a very large number.
Company PCCC1 always aware of the level of competition and has set out the specific
strategies such as: (1) at the forefront of technology in construction - which the
competitors do not keep up in terms of technology and the high-tech; (2) the right HR
strategy to recruit and train qualified staff to meet work demands ... etc.
Currently in the field of construction and installation of high-voltage process with peers
such as: electrical construction company 2, 3 electrical installation company, or
corporation Song Da Construction.
Currently in the field of construction and installation of high-voltage process with peers
such as: electrical construction company 2, 3 electrical installation company, or
corporation Song Da Construction.
Largest customers of the company's current PCCC1 Power Corporation and Power
Transmission Vietnam. These customers provide 85% of jobs and bringing much of the
revenue for the company. Therefore, the company has always preferred the good work
done by the great customer brings. Meet the requirements of quality and progress.
There are also a number of our customers are entities invested projects in export
processing zones and industrial parks or investors with foreign capital.
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Since this is a specific product should not be substitutes. However, there are very few
items that can replace diesel generators as power plants or spot some of the private
hydropower mountainous areas.
The units provide supplies and equipment is mainly because the company is
still foreign brands in the world.
The company also has domestic self-supply of some commodities such as
construction materials, processed to provide steel structure.
In the immediate future, the potential competitors do not have much power by
the construction industry construction hardship risky, but the company must
also change technology to reduce labor, and only try to attract forces permanent
jobs at the company.
According to economists, the economic environment is the entire economic factors
such as employment, income, inflation; interest rates, productivity, and wealth affect
the buying behavior of consumers and the organization. Overall, Vietnam’s economy
in 2013 - this time from stable gradually. Production growth and the positive changes
going on in the last year, however, growth is still low.
Environment macroeconomic stability:
Inflation remained stable. The consumer price index ( CPI ) slowed down in
November , at 0.34 % compared to October , up 5.5 % compared with 12/ 2012
increased 5.78 % compared to the same period in 2012 . As Thus, inflation in 11/ 2013
slowed to 2nd lowest since 2003 back here (after 2009).
Interest rates have fallen steadily, stabilizing the exchange rate, balance of payments
improved. Ceiling deposit interest rate has been lowered from 14 % to 12 % interest
rate credit fell from a year earlier, this trend is being pushed imaginative direction and
flexibility of market fluctuations and take know of inflation. This is an opportunity for
companies to access concessional loans of banks, maintain and expand production.
The infrastructure of the economy as well as factors affecting the purchasing power of
the market. If poor infrastructure increases the costs of production and consumption of
products, product price increases, which will reduce the products competitiveness in
the market. Once the service distribution and promotion has been slow due to the
impact on markets of infrastructure will make the product difficult to access or slow
access to the company's products.
In recent years, power consumption across the country has high growth places severe
lack of power. Should the construction of transmission lines to regions across the
country is essential.
Output transmission provider EVN 2013 127 840 million kWh in 2014 and plans to
increase to 140,500 million kWh.
Currently, Vietnam's political stability is considered. This is a very basic element to
attract foreign investment and is highly appreciated. Survey locations with the most
attractive investment investors Japan by the Trade Promotion Organization of Japan
(JETRO) done this clearly acknowledged. And the factors attractiveness of this
business is due to political stability.
Policy innovation, opening with political stability, a safe living environment, security
is the underlying cause that amount of capital foreign direct investment into Vietnam.
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November this year, this capital gain of $ 10 billion, an increase of 9.9 % compared to
the same period last year. Export turnover increased by 24.5 % in 11 months, a growth
rate much higher growth rate under high goals and many times the GDP growth rate.
Unstable political situation in Vietnam has decisive significance in the economic
development, employment income for workers, increasing consumer demand of
society. This impact also active in the creation and implementation of the strategies the
However, there are some gaps in the legal documents, policies inconsistent,
incomplete and make businesses perform very awkward and inefficient.
Vietnam's social strides bass levels on human index. In addition, information systems
and communications to people are very good. Number of Vietnam's population is quite
crowded, the people's living standards have improved, and demand for electricity,
industrial production requires very high levels to electric transmission lines across the
Early twentieth century, mankind has accumulated a wealth of knowledge in science
and engineering bulky. Karl - Marx (1818 - 1883) had a famous argument: “common
knowledge society (understood as science - TVK) has transformed into a direct
productive force." However, due to the historical development of productive forces is
not uniform, not less than 80-90 % of the world population still lives in poverty and
Science and technology ( S & T ) new phase now starting to thrive from the last
century 40 years and most obvious characteristic of the first artificial satellite in space
conquest (1957 ) followed humans into space , set foot on the moon , as well as the
study universe far different story almost " daily " . Be the stimulation and support of
space technology , the new technology , there are new heights consecutive birth ,
especially information technology , telecommunications , renewable energy
technologies , with ... marvelous inventions like laser (1967 ) , satellite television
artificial (1964 ) , synthetic genes (1973 ) , the integrated circuit (1965 ) , electronic
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computers , electronic computers based on structural biology create human brain (1994
) , microprocessor (1971 ) , electronic bugs , accelerators , etc. ...
Moreover, we live in a new era, the era of IT flourished. IT was a high development
that all digitized information data, strong rotation and connects us all together. All
kinds of information, audio data, images can be taken digitally so that any computer
can store, process and forward for many people. These tools and the connectivity of
the digital age allows us to easily collect , share information and act on the basis of this
information in a manner entirely new , involves a series of changes about the
concepts , practices , traditions and habits , and even view the values in life . IT to each
individual person, managers, scientists, farmers, housewives, elementary students....
No field, no place in the absence of IT. Information Technology is one of the most
important driving force of growth and development ... application of information
technology in our country to contribute to the liberation physical strength , wisdom
and spirit of a nation , promote the innovation , rapid development and modernization
of the economic sector , strengthening the competitiveness of enterprises , effective
support for the process of international economic integration , improve the quality of
life people's lives , ensuring national security and create leapfrog ability to
successfully implement the industrialization and modernization process .
Recognizing the importance of technology in construction, the company is now
applying advanced technology in the construction of power lines. This is a new
technique applied in Vietnam recently, pulling wires through the rugged hilly terrain or
large river. This airship was imported from China, due to the technical staff of the Joint
Stock Company 1 Power Construction operation. Construction time 7km 500kV Xian
Loc - Ham Tan takes a day, 4-5 times faster than the wire with manual methods.
Accordingly balloon will pull new wires connected to cables placed on the head, then
used tractors - normal tension.
This technique is not only fast but also helps reduce the zipper scratches cables, not
logging or clearance below the line.
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Project 500kV Vinh Tan - Song May through the province of Binh Thuan and Dong
Nai has a total length of more than
237km from Vinh Tan power center to
500kV Song May substation in Vinh
Cuu District, Dong Nai Province. This
project has a total investment capital
of 3,000 billion, is key projects
Photo 2. Use airship for line construction
decision of the Prime Minister. The
work will be completed January 10-2013, transmission from Vinh Tan thermal power
plant to the national electricity system.
Opportunity and Thread:
The company has a long CPXLDD1 has 50 years of experience in the construction
industry lines and transformers touch with the staff and skilled technical staff. The
company has access to new technology to serve business.
Economic situation of the country development objectives of the government “soon
industrialization and modernization of the country," the transmission of power to the
regions is essential and potential funding sources for the construction of infrastructure
works are state interest.
Power transmission construction industry is one sector of construction on the difficult
terrain and complex safety risks in construction and during operation of the power grid
is very high; the ability to attract skilled labor is difficult.
The construction works of medium voltage lines come down a lot of units involved in
the construction makes competition increasingly fierce market.
Strategy and Plan
The success of technological innovation
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The most significant success of the PCC1 has really become the leading reputation in
the field of electrical construction of Vietnam years. The entire largest transmission
project and the most difficult of Vietnam are the hallmark of PCC1. Typically, the
North-South 500kV circuit DZ 1 , circuit 2 ; DZ 500kV Son La - Hoe Binh & Son La Nho Quan ; DZ 500kV Son La - Hiep Hoa ; Hiep Hoa 500kV substations , 500kV Dak
Nong TBA , TBA Da Nang 500kV , 500kV substation Tan Dinh , Quang Ninh 500kV
substation construction ..... capacity power transmission projects of the Company has
been proven to perform successful projects EPC works : TBA project Prevent
Highway DZ 110kV and 220kV Bac Giang and Bac Giang - Quang Chau ; Nui Phao
project 110kV substation ( Taiyuan ) ; DZ 220kV project beyond the Hanoi Highway
(HCM City ) ; DZ 500 kV grid through the site displaced Nha Metrocity ( HCM ) .
From construction equipment was rudimentary, simple work also, over the years,
PCC1 has invested modern machinery and equipment, perform simultaneously meet
multiple project lines and transformer stations large-scale and complex to 500kV. At
the same time, training building staff, engineers with management skills, high
professional level. In including the completion of the investment in technology ,
equipment manufacturing single column 110kV , 220kV - 1,2,4 circuit in
Manufacturing Co., Ltd. steel columns East England - Hyundai ( HDDA ) , which has
put into producing good results. In particular, PCC1 is also the first unit in the
electrical construction industry equipment imported investment: drag braking device
sync cord and pull the bait spraying balloon remote control for 500kV, 220kV as:
500kV Son La - Hiep Hoa 220kV Nho Que 3 - Cao Bang; instead of super heat
conductor segment Thuong Tin 220kV - Mai Dong (Ha Noi) and 220kV Hoa Binh Mai Xuan. This solution not only contributes to the liberation of labor, reducing costs
for site clearance compensation, but also helps accelerate the company works.
With owning 02 plants with a total capacity of 40,000 tones / year (HDDA which has a
capacity of 30,000 tons / year, factory fabricated steel structure Yen Thuong has a
capacity of 10,000 tons / year), is PCC1 large-scale enterprises in Vietnam in the field
of manufacturing of galvanized steel structure and is also the only unit in Vietnam
recently qualified design and manufacture steel poles that link payment to 750kV and
single poles 110kV, 220kV - 1, 2, 4 circuit. These products not only serve power
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projects, telecommunications projects, traffic in the country but also exported to Japan,
South Korea, Pakistan, and India....
Not only a leader in the field of electrical construction , PCC1 also performed very
well established consultancy role investment projects , set design and construction
technique for building grid 110kV , 220kV , power supply systems for industrial areas
and industrial plants . PCC1 unit is also done consulting professional surveying, site
clearance compensation across the country.
Currently, the company has been investing, business, management and service
provision for mixed high-rise buildings, apartment buildings and business real estate
transactions. In that PCC1 investment housing project and commercial services Nang
Huong with 2 buildings , adjacent buildings and villas were completed and put into use
after mining investment since 2010 ; Project Trade Center and the Family in America (
with a total investment of nearly 700 billion ) has completed construction of
foundations , basements are the raw construction of the building .
The company is also expanding cooperation with Minerals Corporation, General
Corporation Vietnam Construction Industry sector investment in mineral exploitation
and processing, product manufacturing and prestressed concrete highway continues for
the development of investment plans and investment cooperation as the economy
Promoting collective strength
Despite equalization but thinking of the company’s leadership pays special attention to
taking care of the material and spiritual , job security for workers , demanding respect
for human and labor work to promote collective strength . The movement to promote
technical innovations is widely deployed to units throughout. This movement has
appeared so many initiatives, practical, efficient service for business and production
activities of the unit. Typically initiative “Dry Blower “Limited Company's electrical
construction 1 - Hoang Mai. This initiative has brought the company became the first
in the country to use the equipment to handle moisture insulation of transformers and
500kV electrical equipment. This initiative has been very successful at applying the
500kV Quang Ninh TBA, TBA Thuong Tin 500kV, and 500kV O Mon substation ... In
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addition to improving the quality of work for investors, this initiative also save funding
for equipment not imported. In addition, initiatives to build jigs plated single column
of larger diameter to ensure accuracy of the specifications Manufacturing Co., Ltd.
Dong Anh Column - Hyundai is also highly appreciated. The movement of materials
saving, power saving, water is also done very lively.
Besides, much attention PCC1 improved management perfection. System rules and
regulations are built synchronously, creating strict legal framework, and control the
activities in the field of business. Three years ago , although affected by the economic
downturn but the annual turnover of the company has reached over 1,000 billion,
criticized the budget for the 2009 , 2010 , 2011 respectively : 44.63 billion VND 42.64
billion, 126.73 billion dong.Thu GDP per worker in 2011 reached 5.38 million VND /
person / month , an increase of 16 % compared to 2010 . with the positive
contributions of companies for Vietnam's power sector , in developing strategies and
ensure national energy security , in recent years the company has been granted by the
State Party and many honors such as : Independence Medal Second Class in 2002 ;
Third Class Labor Medal in 2007 ; Government emulation flag in three consecutive
years : 2009 , 2010 , 2011va many other honors .
Preparation for the 50th anniversary of the establishment of the company, PCC1
continue to overcome all challenges, bring movement developed in both width and
depth, using opportunities in business activities, strive to complete outstanding tasks
The biggest goal of the company in 2012 was to ensure stable employment for
employees with revenue of 1101.264 billion, per capita income reached 6.18 million
VND / person who did ¬ / month, benefits minimum profit after tax on capital is 32 %,
and the dividend payment is 20 %. To ensure these criteria, PCC1 will apply the best
technology to complete the major projects on schedule, ¬ burners of high volume,
together striving to maintain its leading position in the implementation of the project
National power Transmission project.
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