Developed from a family business, Water and Environment Joint-Stock Company (WACO) has become a nationally recognized company and an internationally recognized contractor in the water supplying and drainage industry with it’s prestige.

Mr. Pham Tra, General Director of WACO, asserts that nowadays the company has become an internationally recognized contractor, which is reflected through the acquired projects financed by foreign organizations. The effectiveness of the joint venture of WACO –SCB has been gradually confirmed. SCB goes hand in hand with WACO’s acquired projects by financing current assets with the biggest limit, providing guaranteeing limit and liquidating LC. WACO has developed more and more vigorously thanks to the immediate supply of capital. The company has continuously won large scale projects and has become the main contractor in such packages as the ADB project of water supply for Ben Tre Town (EPC package), the ADB project of water supply for Quy Nhon city (EPC package), the construction of the water supply and drainage system (WB’s project of Can Tho innovation). As a consequence, WACO has gained the credibility of the World Bank (WB) and Asian Development Bank (ADB) and has been selected by the Government to be the main contractor for the national projects of water supply and drainage, among which are the Thap Cham project (Ninh Thuan) with the total capital of USD 10,000,000 financed by ADB, and the Binh Dinh project (6 districts) with the capital of USD 6,000,000 financed by WB. To become the main contractor for these packages, WACO has to meet strict international requirements about not only the management capability but also the capital capability which is flexibly financed by SCB. Through the completed projects, the development rate of WACO has soared dramatically. For instance, in 2002, its revenue was 24 billion VND. This increased to 45 billion VND in 2003, 65 billion VND in 2004, 67 billion VND in 2005, 80 billion VND in 2006 and will reach 150 billion VND in 2007. Now, WACO’s charter capital are 55 billion VND, which is estimated to increase due to the company development.

Mr. Pham Tra adds, in the long term, WACO wants to develop a while cooperative relationship with SCB. Besides its willingness to support the clients, the bank has the professional staff. After carrying out the surveys, SCB guarantees to give a prolonging credit fund to its clients. SCB does not assess the companies based their collaterals but on the effectiveness of their projects and the contractor competence as regards their capital circulation. However, to enhance the effectiveness of the cooperation, SCB needs to improve the process of document inspection, which is currently conducted only two afternoons per week (Tuesday and Thursday afternoons). This may cause troubles to the clients if problems arise on Friday. WACO hopes to expand its business with SCB under the condition that SCB further develops the direct international transaction. Accordingly, besides financing capital for the company, SCB will also improve its convenience services to meet customers’ needs.

By Linh Lan
(From “The Bank Newspaper” – Issue No. 102 dated August 24, 2006)