Nam Long Group is ready for new growth limits

The rough conditions of the real estate market has negatively reflected in the 2022’s results of most businesses in the industry. However, "maintaining the balance" with the appropriate product strategy, people management or financial health has helped NLG protect its "stronghold" in the market.

Flexibility in a sustainable structure

After more than three decades being persistent with the philosophy of sustainable development, Nam Long has remained one of the strong businesses with a healthy financial structure and trusted by international organizations. Despite the pressures from the market, the business recorded total sales of more than 10,000 billion dong in 2022. This is the highest sales in the group’s history.

Nam Long Group is currently proving its understanding of the values of a sustainable business by proactively strategizing for every market crisis. First of all, the companies have overcome the most difficult time in 2022 with the execution of the 2030 vision set out earlier.

Mizuki Park integrated township (district Binh Chanh)

The progress of realizing the 2030 vision i.e. To become an integrated township developer, of which phase 1 "Becoming an integrated township developer while remaining in the Top 3 Affordable housing developer on the market" has reflected Nam Long’s spirit of "sustainable growth”. "Sustainability" from focusing on what they do best; to choosing product segments that have "real demands" on the market, which vary from the mid to high-end products, and offering the most reasonable prices, closest to the property values compared to other products on the market.

In addition to products, Nam Long's structure over the years has also changed and adjusted accordingly for more effective management. In 2022, the ERP management system was put into use, marking the first successful step on the digital transformation journey, at the same time with completing the ERM system and restructuring the organization in line with the Dragon Growth Transformation strategy. Despite being a quite turbulent year for real estate businesses, Nam Long still actively enhanced capability and opened to applying new practice in operation.

According to Tran Xuan Ngoc, General Director of Nam Long Group, this initiative was the result of a long process of understanding the market, bringing together the brand reputation and business philosophy. This is the foundation for Nam Long to build a flexible growth formula for every period, and minimize risks from the market as well as the changes in economic policies at the same time.

Tran Xuan Ngoc - General Director of Nam Long Group

The best evidence was the bond issued in the last months of 2022 for organizations that prioritize corporate governance. Specifically, Nam Long mobilized a total of VND 1,973 billion, of which 1000 billion dong was from IFC - under the World Bank. At the same time, as many projects were delayed due to the limited cash flow, Nam Long’s major projects were run on schedule. For example, the progress of large integrated townships such as 355-hectare Waterpoint, 170-hectare Izumi City, 26-hectare Mizuki Park and affordable housing projects such as Akari City, EHome Southgate, etc. was well-kept, following closely the company’s 10-year development orientation.

The good connection with the market demand, ensuring the stability in sales and well grasping new trends helps the company receive higher valuation from local and foreign organizations. Nam Long is the only representative from Vietnam in the Top 200 listed companies with revenue under USD 1 billion in Asia - Pacific voted by Forbes Asia.

Keeping the balance and landing safely in 2022 proved that Nam Long was not impacted by the negative market. The momentum for recovery in the coming time would still be great if businesses actively build an appropriate restructuring plan.

Ready to adjust the growth limits

From a market perspective, to recover in 2023, businesses may have to be prepared for a very painful filtering process. However, surviving the crisis leaves businesses with many lessons. In unusual circumstances, businesses need extraordinary solutions to recover. This depends on how willing the business is to break the boundaries, to seek growth in the challenges.

With the experience from overcoming the crises of the real estate market in 1997 or 2008-2012, Nam Long Group believes that "in danger there will always be opportunity". It is important that businesses stay proactive, accept challenges and continue to Take Action.

Tran Xuan Ngoc acknowledged that while it looks like a pause on the outside, there is a race inside every business. This is also an opportunity for businesses to practice endurance, choose effective plans, improve creativity, flexibility and increase resistance to difficulties.

In 2023, Nam Long is determined with a sustainable development strategy based on three main criteria: "Action - Efficiency - Creativity".

In terms of action, Nam Long continues to stick to not only the annual but also the medium and long term business plans. The first action is researching the market to make the most of existing large townships. Specifically, Waterpoint, Mizuki Park, Izumi City, Akari City, Nam Long II Central Lake Can Tho, Nam Long Dai Phuoc, etc. are major projects that help achieve $2 billion in sales revenue in the next three years.

In terms of cash flow quality, appropriate products have been important factors to promote growth and liquidity in the current market. With a foundation of sustainable development, Nam Long has great advantage to continue seeking capital through cooperation with strong local and international partners.

The current market movement also drives liquidity towards real value housing products. This movement is considerably compatible with Nam Long's orientation to build houses for people with real needs. The product restructuring process happened naturally as Nam Long's EHome, Flora, and Valora products led the affordable housing segment and held a pretty good market share. In addition, the other sectors that bring a stable source of income such as commercial real estate, schools, etc., are also the businesses that Nam Long cooperates with professional partners to deploy in the near future.

"Going through fluctuations, an effective development mindset is always a priority criterion for businesses to maintain a stable financial structure. Besides applying standardized systems, lessons learned from the Center of Expertise, Nam Long will thoroughly assess every budget and apply technology in daily work to increase efficiency", Ngoc shared.

If effectiveness helps maintain a good financial structure, creativity will help businesses seize opportunities to increase growth limits. Creativity and willingness to change give opportunities to create products that "disrupt the market". From here, the values are spread towards solutions to improve sales, solve financial problems for buyers and more broadly, improve capital efficiency and attract investment.

The 2023 forecast indicates that the difficulties of real estate would not yet be eliminated and the market would be unpredictable. However, a healthy financial structure and a sustainable growth strategy are the levers for Nam Long to push through existing challenges and bring stable benefits in the long run.

Source: CafeF