CNA Group explores stake in Vietnam airport concession after bagging $70m terminal deal

Visual from the CNA Group website

Singapore-listed engineering firm CNA Group is exploring the possibility of picking up an equity stake in Vietnam’s 30-year airport concession, to secure long term recurring income opportunities, the company said, in a regulatory filing Thursday.

The regulatory filing was on account the group’s subsidiary signing a Letter of Intent with Vietstar Airlines Multirole Corporation for a $70 million (approximately S$95.8 million) mechanical, electrical and plumbing (MEP) contract for an airport terminal in Vietnam.

This terminal in Ho Chi Minh City is expected to be operational by early 2017, and will comprise a 39,500 sqm passenger terminal building, a cargo terminal building and a multi-purpose warehouse, as well as ancillary buildings such as a sewerage treatment plant.

The current Tan Son Nhat International airport capacity has been recently expanded from 20 million to 25 million passengers annually. The new terminal is designed for handling 9 million passengers annually. The traffic is expected to be 85 per cent domestic and 15 per cent international passengers, growing at an average of over 13 per cent per year, the company added.

Michael Ong, CNA’s group CEO and President said the contract spotlights the company’s airport expertise and its niche as the regional specialist for airport-related building systems.

“We continue to see strong position in the transport and infrastructure sector in Vietnam and hope to build on this momentum by securing more airport-related projects in the region,” he added.

Headquartered in Singapore, CNA has direct presence in many countries in Asia and the Middle East including Malaysia, Myanmar, Philippines, Thailand, India, China, Vietnam and Dubai, having implemented a broad range of projects for commercial and government buildings, educational institutes, residential developments, semiconductor wafer fabs, pharmaceutical plants, other industrial manufacturing facilities, waste water treatment facilities, and aviation and transportation infrastructure.

Also Read:

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.