IMPROVING VIETNAMESE FOUNDATION CONSTRUCTION COMPANIES � BUSINESS

Abstract

In foundation construction works in Vietnam, machines play an important role. In most of local foundation works, drilling rigs and grabs perform the most critical works while other equipment provides supporting roles. In this research, the nature of high demand for the foundation construction machines will be examined in two dimensions: quantity and capacity of the foundation machine fleets. The research will also look into the factors contributing to the excessive demand and make recommendations to related bodies to improve the operating environment for the foundation contractors and the foundation construction business as a whole. The research establishes two hypotheses to guide the study. The first hypothesis is that there is significant evidence that the size of the current foundation machine fleets does not meet the local construction demand. The second is that there is significant evidence that the capacity of the current foundation machine fleets is not sufficient given the technological requirements of modern foundation works. The t-statistics are employed to test the hypotheses. The evaluation of the research is based on the survey of 26 companies in the sector and interviews. The findings show that the local economy, the recent development of the local construction market and technology, the business strategy of equipment leasing companies, as well as the financing environment are the factors that affect the demand for the foundation construction equipment. Recommendations are proposed for Government, leading entities as well as foundation contractors in Vietnam to improve the Vietnamese foundation contractors’ business.