Daewoo Engineering and Construction will expand its presence in Vietnam by starting new businesses in collaboration with the Southeast Asian country’s major construction firm CC1, the company said Wednesday.

Daewoo E&C and CC1 signed a memorandum of understanding at the Korean company’s headquarters in Euljiro, central Seoul, on Friday, under which the two partners will exchange information about biddings in the Korean and Vietnamese markets and seek new businesses together.

CC1 is a construction business in Vietnam under the Ministry of Construction, with over 40 years of history in the fields of civil engineering, construction, real estate development, material imports and renewable energy. 

Under the memorandum, Daewoo will start to enter the areas of infrastructure, real estate development and oil and gas mining together with CC1.

In December, the two firms clinched a deal to start a construction equipment lease business. A joint venture will be established within the year with a plan to expand its operation to Laos, Cambodia and other Southeast Asian nations.

“The cooperation with CC1 is one of the measures to secure new growth engines,” said a Daewoo official. “The company will develop new businesses that will generate profits with stability, make financial investments and expand the value chain.”

By Song Su-hyun (song@heraldcorp.com)