Why did IFC invest VND 1,000 billion in Nam Long’s bonds?

Amidst Vietnam's bond market being doubted, IFC, a member of the World Bank Group, has announced an official investment of VND 1,000 billion in Nam Long Investment JSC (NLG) in the form of bonds. What are the criteria for this reputable organization to trust Nam Long and make this a typical case study for Vietnamese businesses?

Business from products with real values

Eight years ago, IFC invested in Nam Long because its core product at that time was affordable housing. After 8 years, despite many fluctuations in Vietnam's real estate market, Nam Long published its 10-year development strategy for 2020-2030, devoting part of its core business to affordable housing, in addition to developing high-end product lines and integrated townships. For international investors, there is always real demand for this product which makes them the most sustainable product in any real estate market. Building an affordable house is actually more challenging than building a premium house because it requires efficiency in each part of the real estate value chain management. Nam Long with 30 years of experience and subsidiaries specializing in each part, has a great competitive advantage in developing this product.

Having international partners & a “dream” team

Nam Long rarely uses loans, and mainly cooperates with international partners from the US, Japan, and Singapore, etc. to proactively seek investment. Its long-term partners include international companies with hundreds of years of experience such as Hankyu Hanshin, Nishi Nippon Railroad, Keppel Land, and Mekong Capital.

Nam Long Chairman, Nguyen Xuan Quang once shared: “Nam Long has changed a lot in terms of governance, corporate culture, accepted and overcame many challenges to cooperate with "giants". The change in management and working culture is not easy, especially when we are trained in a very different way from the rest of the world, and the teamwork skills and compliance are not yet strong.

However, with all its efforts, Nam Long has landed "dream" partners and earned their trust. Some of Nam Long's Board of Directors members are General Directors of investment funds, auditing companies and large real estate companies with international management experience. This is also one of the factors helping Nam Long attracts big investors.

Overview of Waterpoint township in Ben Luc, Long An.

Sustainable development

Like many local and foreign corporations, Nam Long applies ESG (environment, social, governance) elements in its business. IFC, a financial institution that cares about social issues in addition to supporting capital for businesses, has found in Nam Long the willingness to carry out sustainable development.

IFC's investment is expected to create 1,500 jobs and contribute to establishing a satellite city that provides housing for over 50,000 people. Nam Long will also build apartments according to EDGE standards in phase 2 of the Waterpoint project.

Tran Xuan Ngoc, General Director of Nam Long Group, said: “IFC's investment will help us increase our capacity, providing more housing to the growing middle-income population in Viet Nam. In addition, more than 5,000 apartments of the Waterpoint phase 2 project, built according to IFC's EDGE green building standards, Excellence in Design for Greater Efficiencies, will help solve the severe housing shortage of Vietnam in a sustainable way”.

Obviously, IFC's investment in Nam Long doesn’t solely rely on the standards of a profitable business, but on the dedication of businesses to the social development of the country. This important factor should be businesses’ objective for a prosperous Vietnam in the future.

Source: nhipcaudautu.vn