According to Nam Long’s Chairman, the company started land development with partners’ exisiting projects and focused on projects associated with the transportation system, planning system of the developing areas.
According to Nguyen Xuan Quang, Chairman of Nam Long Investment JSC (Code: NLG), in 2022, the company targets a breakthrough to celebrate 30 years of establishment. In particular, Nam Long will focus on its goal to become an integrated township developer.
Nam Long continues to launch a series of largetwonship including Southgate (Waterpoint phase 1- 165 ha), Mizuki 26 ha, Izumi City (170 ha), Akari (8 ha), Nam Long – Can Tho (43 ha). , Nam Long Dai Phuoc (45 ha), etc. targeting a total sales revenue of USD 2 billion in the next 3 years.
Nam Long’s on-going projects. (Source: Nam Long).
In addition, the company plans to expand product lines to mid and high-end segments and continue its leading products in the affordable segment such as EHome, Flora, Valora.
Besides, Nam Long will expand its business to commercial real estate, township management, investment in ecosystems which serve living, working, playing, shopping and learning needs of residents, following the integrated township model.
Talking about the land fund development strategy at the 2022 Annual Shareholders’ Meeting held on April 23, Chairman Nguyen Xuan Quang shared that Nam Long has its own Land Development department.
“Each company has its own strategy for land development. Nam Long began land development from partners; existing projects for developing land bank. Nam Long started land development with partners’ exisiting projects and focused on projects associated with the transportation systems, planning system of the developing areas. Most of Nam Long’s land are located in developed areas and are always 10-15 years ahead of time,” said Chairman Nguyen Xuan Quang.
Simultaneously, Nam Long cooperates with partners who have large land fund and are willing to participate in programs such as State’s land auction.
- Nam Long Annual Shareholders’ Meeting: Ambitious plan in 2022, Q1 Sales are estimated at VND 5,895 billion
According to Nam Long’s Chairman, despite concerns in the short run, there are many opportunities in the long run. First of all, Ho Chi Minh City has decided to expand Ring Road 3, connecting Ho Chi Minh City, Binh Duong, Dong Nai and Ba Ria-Vung Tau, which will initiate the development of thousands of hectares of surrounding land.
Secondly, Hanoi decides to build Ring Road 3 in May and there are still available land at major cities like Da Nang, Hai Phong, Bac Ninh, Can Tho, etc.
Nam Long’s strategy is avoiding the unorganised areas and developing project along with transportation infrastructure. Nam Long’s land development focuses on land with low price, can be used quickly and cost the least.
In addition, at Nam Long always reserves 10% of the land or 10% of high-rise products for social housing development in its projects.
Common difficulties
Commenting on the news about tightening credit and bonds in the real estate sector, Mr. Nguyen Xuan Quang said that it’s a shared situation, Nam Long is not exempted from these common difficulties. However, Nam Long has specific strategies to respond.
Firstly, Nam Long cooperates with foreign partners with strong capability for example Hankyu, Keppel Land, etc. These partners have not only township development capacity but also financial capacity, and the ability to raise capital in low-cost markets.
Besides foreign investment from partners, Nam Long is also supported by bank loans in project acquisition.
“We combine domestic and foreign interest rates to offer a competitive interest rate, between 6 and 6.5%. These are international banks, and international organizations with short term loans, fluctuations in interest rates and prices do not occur.”
On the other hand, Nam Long’s Chairman said that when Nam Long issues shares to raise capital, it receives a lot of support from shareholders as well as investors.
Nam Long’s managemen said: “Nam Long is heading to a long road, from building credibility in the financial market, working with credit rating agencies and has been successful in raising capital from Keppel Land, IFC. We gradually develop the overseas capital channels. This is Nam Long’s strategy.”
Most recently, IFC has invested over VND 1,000 billion worth of bonds in Nam Long. This money is used in infrastructure development Waterpoint’s phase 2.
Waterpoint township has total area of 355 hectares in Ben Luc, Long An.
Source: vietnambiz.vn
