SCI Annual Report 2015

Industrial and Competitive Situation
The switchboard and cable tray industry is the core electrical equipment necessary for controlling and distributing power
to consumers. For all categories of power users in particular, it will grow all along with the construction industry and the installations
of electrical cables in various categories of the buildings. Therefore, the Company’s product consumption quantity is growing
all along in accordance with the industrial situation relating to the construction contracting works and real estate developments.
Construction Contracting Work and Real Estate Development Situation
Over the first 3 quarters of 2015, the construction contracting work industry had a chance to reap the advantage from
the State’s medium and small scale construction projects while the construction works of the private sector were comparatively
small in the quantity; construction works on industrial factory and commerce slowed down; construction works on real estate
sector are half-dead from the beginning of the year. Nevertheless, by end of 2015, trend on construction industry began to be
well picked up from the accelerations on the investment of the State sector, specifically on large sized projects (Mega Projects)
which were gradually implemented including real estate stimulating measure. Any rate, based on the overview information on
the construction areas from Office of National statistics, details related to buildings authorized for new constructions during 2011
- 2015 are as follows:
Table 1: Areas of Buildings Authorized for New Constructions.
Unit: Million
Square Meters 2011 2012 2013 2014 2015
For residency purpose 44.8 46 48.19 47.14 38.12
For commercial and
office purpose
11.05 14.16 14.72 12.49 7.95
For industry and
factory purpose
7.28 9.06 10.47 7.56 4.97
Hotel 3.74 1.72 2.99 1.81 1.02
For education and
public health
0.9 0.73 0.83 0.9 0.53
Others 3.13 3.03 3.78 2.39 2.02
Total 70.9 74.7 80.98 72.29 54.61
Source: National Statistical Office Remarks: Information updated until November 2015.
The abovementioned building information is the report on result of the information on the construction authorizations which,
in some place, a construction work has not yet begun. It can be noted that trend on the construction plan in the overall
picture had slowed down in 2015 in continuation from 2014.
Where on the part of the factory operating business, situation of the country’s economic slow- down has resulted in the
total number of the Applications for Business Operating Licenses (Form Ror.Ngor. 4) of the country to decline which is in
compatibility with the quantity of the factories licensed to carry out businesses which were slowed down in 2015, as well. In this
connection, quantity of the factories and power plants newly licensed to carry out business in 2015 was numbered at 4,434
factories, a decrease of 202 factories or 4.34% from the preceded year (Table 2) which was a result of a slow-down in the
investments of private sector due to the situation of the economic-slow down. However, the progress on the investments of
State sector to stimulate the economy, the policy to support the use of renewable energy including the plan on the construction
of power plant of Electricity Generating Authority which has already been approved by the Cabinet, of 1,9483 megawatt,
would result in the constructions of industrial factories and power plants to have a trend of increase in 2016.
Annual Report 2015
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