THE DEVELOPMENT OF INVESTMENT COMPANY PETROLEUM CONSTRUCTION IDICO (IDICO-CONAC)

IDICO Investment Construction Oil and Natural Gas Joint Stock Company (CONAC) is a subsidiary of VietNam Urban and Industrial Zone Development Investment Corporation (INDICO). CONAC’s predecessor is construction company No.12, founded by decision No1478/QD-BXD dated October 16,1979 under Ministry of Construction of the Socialist Republic of VietNam.

Over 30 years of operation, from a company that was limited in business and production capacity, the company has become a fairly comprehensive business and developed well.

Milestones of the company’s development

1. The first years after its establishment, from 1979 to 1987: IDICO-CONAC, or Construction Company No. 12, operating in the subsidy mechanism, performing their tasks of production and business assigned by the State. All resources were primarily based on the State and the company only focused on housing construction sector.
With the support of the local government of Vung Tau - Con Dao Special Economic Zone and the Ministry of Construction, the company was assigned to to participate in building a number of industrial projects for oil and gas industry and tourism. To be consistent with the duties assigned, on December 4, 1985, the Minister of Construction signed a decision on changing its name to Oil and Gas Construction Company under the Ministry of Construction.

2. From 1988 to 1993: This was a transition time from the planned economy to the market economy. Grasping thoroughly the policy of the Party and State, the company took some break-through decisions to diversify its operation. From the a company that worked solely in civil and industrial construction, the company developed new businesses such as materials, equipment, home business, travel business, and cooperating with domestic and international organizations to improve its management and capabilities to ensure comprehensive development while strongly shift to the construction and infrastructure business. The company actively recommended and approved by the Ministry of Construction and Ba Ria-Vung Tau Province to implement the pilot construction model of "Exchanging land for infrastructure." This move has changed the face of infrastructure in Ba Ria-Vung Tau and supporting the company’s fast growth.

During this time in Ba Ria-Vung Tau, the Company has mobilized major capital sources to construct:

Ha Long Road – Vungtau City 3.8km, invested 50 billion VND
Tran Phu Road - Vungtau City 4km, invested 40 billion VND
Nguyen Van Troi Road - Vungtau City, invested 10 billion VND
Le Hong Phong Road - Vungtau City, invested 20 billion VND
Nguyen An Ninh Road - Vungtau City 3km, invested 40 billion VND

The investment and construction of Ha Long and Tran Phu Road in Vung Tau City was a decisive determination and succeeded in claiming the  sea to form a transport system around the sea, enlarging 8ha for Ba Ria - Vung Tau province.

3. Frome 1994 to 1997: To catch up with the enterprise development, on 12/02/1993, the Minister of Construction signed Decision No. 030A/QD-BXD on re-establishment of State enterprises. Since then, the company has expanded its investment fields in:
- Construction equipment and materials business: commercial concrete production, processing, steel, brick production.

- Housing: Within 3 years from 1992 to 1994, the company constructed 308 apartments, handing over to customers more than 100 apartments a year with total area of 12,000 m2 yearly.

- Travel services: The company has built two  2-star hotels that cost billions ofVND. Those are Thuy Duong Hotel in No. 8 (now No. 171) Thuy Van Street, Ward 8, Dist. Vung Tau and Long Hai Hotel in Long Hai Town, Long Dat district, Ba Ria - Vung Tau.
Besides the company’s outstanding achievements in building the traffic system of province Ba Ria Vung Tau, IDOCO- CONAC also contributes to constructing a range of civil and public infrastructures in the province of Ba Ria – Vung Tau, such as the Provincial Party Committee’s Hall, a five-floor apartment building for the staff of Vietsopetro corporation, a system of schools in Long Son island commune, Ba Ria Vung Tau Pedagogy School, Quang Trung school, a children's cultural house of province etc.

In 1993, the Ministry con Construction recognized IDICO as “the company of high quality construction Vietnam”.

4. From 1994 to 1999: The company shifts from the contractor that specializing in construction and installation works to infrastructure investment in industrial parks and BOT transportation projects.

In 1997 and 1998, the company invested in Thien Son Concrete Plant Project and My Tra Hotel, My Khe beach resort in Quang Ngai province. These projects then provided services for the construction of Dung Quat Refinery. At the same time, the company constructed coastal roads and sea walls in Con Dao with a total length of 4.8 km, creating the infrastructure for the socio-economic development in Con Dao.
In 1998, the Prime Minister assigned IDICO-CONAC as investor of investment and trading in infrastructure of My Xuan B1 Industrial Zone, My Xuan commune, Tan Thanh district, Ba Ria-Vung Tau province, on an area of 226.15 hectares and total investment capital of 543 billion Dong.

Moreover, the company also  formed a joint-venture with SOCIVINA - France, to establish Lesco Resort Co.,Ltd to work in investment and travel business. Every year, Lesco Resort welcomes  thousands of domestic and international visitors who mainly are investors and international experts working in Phu My Zone – Tan Thanh, Baria-Vungtau province. This is a right decision of the company.

In 1999, the company was the investor of road 15 inter-provincial project. It was the first BOT project in Ho Chi Minh City, a breakthrough in the BOT transport construction project. After that, the company invested in An Suong- An Lac highway 1A BOT project in Ho Chi Minh city.

5. From 2000 to 2006: In December, 2000, the Company became a member of Industrial Zone Development Investment Corporation (the present VietNam Urban and Industrial Zone Development Investment Corporation), according to decision No1478/QĐ-BXD dated October 16,1979 under the Ministry of Construction of the Socialist Republic of VietNam.

In this time, the company involved in BOT projects, upgrading An Suong- An Lac highway 1A with the total investment of 850 billion Dong, road hubs connection project in Ho Chi Minh City and the Southwestern province. This project brought the company both economic success and prestige, confirming its organizational capacity and project management.

In 2002, the company invested in building Phu My materials factory, investing in exploiting My Xuan 2 clay mines in in Tan Thanh district, Ba Ria - Vung Tau province, and involving more in producing construction materials business. At its first phase, Phu My factory could produced about 25 million bricks/ year, meeting demand of the market for construction materials and create more jobs for hundreds of local employees.

6. The period from 2007 to now.
When Vietnam joined the World Trade Organization, the company shifted from a state-owned company to a joint-stock company, mobilizing capital from various sources and encouraging workers to be owners of the business. IDICO- CONAC was founded according to decision No 1744/QĐ-BXD dated December 14th,2006 by Minister of Construction. At this stage, the company continued to make steady efficient steps, creating the position and power to develop the business.

Moreover, over the last 30 years, the company has always taken care of the material and spirit of staff’s life, generating jobs to improve the living standards of the staff. Especially, the company built thousands of apartments for its employees. Regarding the social welfare, the company has donated tens of billion of VND to poverty reduction funds, school construction, roads, support for education, health, natural disasters, emergency relief etc.

With its remarkable achievements over the last 30 years, the company has been awarded six State Labor Medal Class 1, 2, 3 and Flag of the Government, the Ministry of Construction and many Merits, Certificate of Merit by the Government, General Labor Union of Vietnam, Ministry of Construction, Ba Ria - Vung Tau. Especially, in 1999, the company was awarded the Independence Order of Class III by the State.