1. What Happened?

Dongbu Construction signed a contract with the Vietnamese Ministry of Construction on July 22, 2025, to undertake the Mien-Cao Lang road construction project worth $84 million. This represents 6.54% of Dongbu Construction’s consolidated revenue in Q3 2025, raising expectations for future performance improvement.

2. Why is This Contract Important?

This contract signifies more than just increased revenue for Dongbu Construction. Firstly, it establishes a foothold for business diversification through overseas market entry. Secondly, the increased backlog enhances future growth potential. Thirdly, it provides an opportunity to partially recover from the negative image following the Geomdan accident.

3. So, What Should Investors Do?

We cannot solely focus on the positives. Investors need to consider the uncertainties of the Vietnamese market, the aftermath of the Geomdan accident, and macroeconomic risks such as rising interest rates. Managing foreign exchange risk due to currency fluctuations is particularly crucial. Continuous monitoring of the project’s progress and the company’s risk management capabilities is essential.

4. Investment Action Plan

  • Short-term investment: Requires cautious approach considering potential increase in stock volatility.
  • Mid- to long-term investment: Continuously monitor follow-up measures for the Geomdan accident, progress of the Vietnam project, and the company’s ability to respond to macroeconomic changes.