While the M&E market for trillion-dollar real estate projects is in fierce competition, the private construction group is not concerned.

Among the businesses honored by VNR500, it is not difficult to see the presence of enterprises operating in the field of electromechanical. Looking back at businesses rated by the market as "terrible", most of them target the real estate market, resort tourism and a part of FDI-invested industrial projects.

In a smaller niche, the other units focus on familiar customers, have long-standing relationships or specialize in a specific segment of the countless categories of electromechanical field in general.

Although the number of M&E companies in Vietnam is in the hundreds, to find a business that takes civil customers as its target of care is almost nonexistent.

Mini apartment with an area ​​less than 30 m² attracts many private investors.

Civil and mechanical construction markets

In the general development of the real estate sector, private sector cannot be ignored. The group of houses in the form of mini offices, mini apartments, accommodation services ... is increasing. There have not been any specific reports, but by visual reality, in large cities like Hanoi and Ho Chi Minh City these situations are rising.

From the perspective of urbanization, architect Tran Ngoc Chinh - Chairman of Vietnam Urban Planning Association stated that by 2040, 50% of Vietnam's population (equivalent to about 50 million people) will live in municipalities.

Considering the investment in real estate for the development of businesses, the Department of Housing and Real Estate Market Management assessed that by the beginning of 2019 in the new urban area, only 3.92 million m² have been completed, which is equivalent to about 31% compared to the goal set out in the Housing Development Strategy by 2020. The remaining 69% of the target has not been taken charge by any enterprise. This figure is both a stimulant and a testament to the motivation of the private groups to invest massively in mini apartments, and mini offices …

Most of the private projects use the "village workers" team for the construction of mechanical and electrical systems and fire protection. This may cause a fire at any time.

Demand is available but supply is insufficient

While the M&E market for trillion-dollar real estate projects is in fierce competition, the private construction group is not concerned.

In contrast, from an investor's perspective as an individual, the process of designing and constructing mechatronics for buildings are still taking place with a simple type. By the introduction and sensory evaluation, it is common for one or several people to take charge of the entire electrical and water system. It's like someone building a house. Before building, they firstly have to create a design plan. At the time of construction, the construction team called a team of famous workers somewhere, and through the architect or acquaintance, the electrician entered the construction.

Obviously, with the turnkey thinking and costing, the quality of electricity - water of these projects is not sure whether or not they will meet technical standards. Especially when it only serves to rent or sell as a cheap home. Thinking less, more profits, pocket money also contributed to creating mini apartments of low quality, risk of fire, high fire.

However, if considered fairly, the so-called low amount of money that private owners spend on the construction of electricity - water is not necessarily low. The reason is because they themselves have no ability to appraise, evaluate the quality of construction, nor have the knowledge broad and deep enough to know what they are worth. They also lack management knowledge and extensive construction so it is difficult to avoid waste. In addition, the progress, the synchronization in equipment connection is done by the "village" hand, no one dares to say that it is good and good for rice.

Homestay services crept into every corner of Hanoi. Like apartments and mini office buildings, they all need to design and execute mechanical, electrical, refrigeration and fire protection systems. However, not many businesses are interested in this group of customers.

What promises in the group of civil engineering works?

Looking at the total value of the package, without clicking the computer, everyone envisioned the small number gained from civil works. This is the main reason why M&E companies are not interested in this type of construction.

But being a business, surely no unit "freaking out" thought so short that only looking at the construction of a few houses. With the ability and potential of the companies specializing in mechatronics, mobilizing engineers and workers to meet at the same time for many projects with a few hundred m2 floor area is easy to turn into a hand.

Another advantage worth pondering for M&E companies. While the accumulation of capital, prolonged debt for hundred billion, trillion projects is "common in the district", for private works, this is not happening. Why? In addition to how to convince the "Landlord" to believe that "I" will ensure the highest efficiency for the investor in using money, procedures such as bidding documents, financial guarantees, etc. / v ... almost completely ignored.

This has helped businesses streamline office apparatus, save time and costs for administrative procedures, optimize working capital.

In terms of revenue and profit of each civil engineering work is small, but with the current great demand, the "accumulation of small cities" is not difficult.

What to do to turn "small into great”?

The biggest barrier for businesses designing and constructing electromechanical is psychology. While the mass media mentioned Enterprise A, Enterprise B ... then we "worked" to be "workers". This mindset is inherent and needs to be corrected if it is to survive and open a new path to development.

Experience to reach mass customers, is also a difficulty for electromechanical enterprises. Each group of customers will have different psychologies and habits, so how to market the civil engineering market also requires different mindsets and strategies. Instead of taking care of trillions' investors, access to the universal market requires a sufficient and knowledgeable workforce with well-trained on how to work.

The final difficulty is which unit will dare to be the one who opens the way for the exploration of the new land. If you just think and observe what people around you are doing instead of acting, the old script "chasing" happens with exactly what the business has spent.

Galaxy M&E