Nam Long and the story in the next decade

The goal that Nam Long Group is pursuing in the next decade is becoming a reputed and sustained company in Southeast Asia …

Following the growth strategy for 2021-2030, Nam Long is expecting a major step forward.

Transforming to accelerate growth, presenting in Vietnam’s top 3 township developers and having a sustainable integrated real estate ecosystem are the ambitious goals that Nam Long Group is aiming for in the coming decade 2021-2030. This is an inspiration from a Vietnamese company that has been through ups and downs of the market and still persistent with the mission to create a living environment and valued products for the community, and growing based on what they do best: Real estate investment and development.

NEW LADDER

Nam Long's growth strategy for 2021-2030 is a bold transformation from an affordable housing investor to a developer of complex projects and integrated townships with size of hundreds of hectares in key economic regions.

Besides the affordable housing segment with familiar brands including EHome, Flora, Valora, etc. Nam Long will develop new products in the mid-end, high-end segments and other types of real estate such as commercial real estate, schools, hospitals, entertainment services, complexes, offices, retail centers, etc. to create high quality communities with its own living style.

Following the 2021-2030 growth strategy, Nam Long expects to take a major step forward. In parallel with enhancing the current core businesses including Land Development, Affordable Housing development, Non-residential real estate and Services development, Nam Long will promote these businesses by expanding the customer base, market share and areas of development, and simultaneously diversifying growth into other sectors such as offices, retail and investment to perfect the real estate ecosystem. These activities are all relevant to the core businesses and therefore could complement them, not only in terms of optimizing revenue and profit, but also leveraging industry knowledge, strengthening and expanding partnerships, consolidating Nam Long’s existing system, processes and human resources.

Nguyen Thanh Son, Nam Long Land’s General Director cum Transformation Director ("CTO") of the growth strategy for 2021-2030, said: "In a simple way, nam Long previously exploit land by simply building houses and sell them, but now we are formulating a process to maximise the land value. From having professionals for legal compliance, project management and infrastructure construction to help increase the land value, to joint ventures with foreign partners so that we can earn from land development and collaborate with them to develop high quality housing products which also bring revenue.”

In addition, we will also develop facilities for working, recreation and shopping in the townships to offer the community a valued living environment, as well as create a stable source of income that is helpful for the Group’s sustainable development. Nam Long has had all these advantages for the past 29 years, and been accompanied by international partners such as Keppel Land, Hankyu Realty, Nishitetsu, IFC ... with hundreds of years of experience. Thus Nam Long has the foundation to be confident stepping on the new ladder.”

Along with implementing the strategic growth plan, Nam Long will also make adjustments to improve the organisational structure by improving transparency, interconnection and efficiency with a series of modern management tools such as ERP, ERM.

Talking about the new ambition, Nam Long management shared that the Group aims to become a reputed and sustained corporation in Southeast Asia. The Group would be known as an Integrated Real Estate Corporation, a world-class real estate developer. Nam Long would be a pride of not only employees but also the nation through integrity, commitment and creativity.

HEADING TO A NEW PROSPEROUS ERA

The cooperation with the world's leading consulting groups to rebuild the process and system according to the world's strictest standards partly shows Nam Long's great ambition. But do they have the capacity to execute their plan?

In fact, in 29 years of establishment and development, Nam Long has become a strong brand, trusted by partners and a large number of customers due to standardised design and commitment to on time delivery for 11 township projects and more than 20,000 products EHome, Flora, Valora, etc. Nam Long and Japanese partners’ recent projects such as Mizuki Park, Akari City, and Phase 1 Waterpoint have also been highly rated on the market.

In 2020, Nam Long recorded VND 2,217 billion in net revenue and VND 835 billion in net profit, exceeding 46% of the revenue plan and 3% higher than the profit plan. Pre-sales also reached VND 2,000 billion. To achieve such results, Nam Long’s development has always been planned for 3-5 years, even 10 years rather than 1 single year. The 700 hectare land fund or new township projects were indeed planned 15 years ago. Nam Long always researches very carefully before doing and is consistent with the chosen path and rarely follows temporary trends, in order to make bigger step forward and overcome challenges.

"In 2021, Nam Long will focus on housing development. We will maintain growth rate at 20-25% or even higher if the market conditions are favourable. We will continue to sell projects in the existing townships, including Waterfront (170ha), Nam Long - Can Tho (43ha) with a variety of products from affordable EHome, mid-end Flora, townhouses, Valora villa to high-end Valora Premium, Grand Villa.”, Son said.

Son also noted that land development is also focusing on searching for new land plots suited to township development in key economic regions. At the same time, the Group will diversify growth with commercial and service real estate to create social infrastructure right in the existing townships, indirectly increasing the value of Nam Long products and the benefits of our customers and investors. These are challenging yet inspiring moves that give Nam Long a lever to move ahead.

Nam Long's safe financial structure is also an advantage, allowing the Group to broaden their capital investment channels and increase the scale of operations in the future. According to the leading securities firms in Vietnam, Nam Long has the lowest leverage ratio in the industry. In addition, the company cash flow has had good changes and remained positive for 6 consecutive years since 2014. As a result, Nam Long is less likely to have any difficulty when borrowing money as the Bank tightens loan policy, as well as is able to get through the rough period of the market.

In short, with a solid foundation and high capability human resources, Nam Long is heading towards a new prosperous era.

Source: VnEconomy