In the first half of the year, the real estate market continued to receive a number of new projects, including projects of new businesses.
Business hand-outs across the massive encroachment
On June 19, Vimefulland’s second real estate project, The Emerald, was officially launched in Hanoi.
Located at CT8 – My Dinh, with a total area of over 19,000 sqm, The Emerald project is expected to make a breakthrough in the real estate market when it is located right in the manor. In addition, Vimefulland also said it will combine research with many health professionals, launching a series of standards for the application of health and medical standards to residents.
Previously, in November 2016, the pharmaceutical group with 26 years of age has simultaneously launched the Vimefulland brand and Belleville shophouse project in Hanoi. Located at B4 Nam Trung Yen with a total area of 15,716 sqm, the project consists of 66 five-storeyed shophouses with a construction density of 50%.
Similar to The Emerald, Belleville Hanoi is expected by Vimedimex to create a breakthrough in quality housing business in Vietnam with a full complement of cultural, educational, medical and commercial facilities. The western capital of the capital.
One of the other hands on the real estate market recently cannot help but mention T & T Group with the T & T Riverview project, which has more than 600 apartments in Vinh Hung, Hanoi.
T & T is a major player in the field of industry and finance, but T & T is well known for being a sponsor of T & T Hanoi Football Club.
T & T Group is a major shareholder of Quang Ninh Port, Central Transportation Hospital and many big financial institutions such as Saigon – Hanoi Commercial Joint Stock Bank (SHB), Saigon – Hanoi Securities Joint Stock Company (SHS) ), Saigon Insurance Corporation – Hanoi …
However, with real estate, T & T Group is almost completely new to homebuyers. However, after the launch of T & T Riverside, T & T identifies real estate as one of the mainstays of business alongside the financial and industrial sectors.
Therefore, T & T Group has “silently” accumulated land funds in key markets such as Hanoi, Da Nang, Ho Chi Minh City with the goal of long-term and sustainable development.
Similarly, Duc Long Gia Lai Group (DLG), a company active in the fields of agriculture, energy, transportation and transportation, recently announced its strategic alliance with strategic shareholders leading the real estate business this year.
According to DLG, the company will focus on apartment, office, commercial center, low-income houses in Ho Chi Minh City and hotels and resorts in coastal tourism cities.
In Ho Chi Minh City, DLG is investing five real estate projects for the medium segment. DLG has started 3 projects: Duc Long Golden Land (District 7), Duc Long New Land (District 8); Duc Long Western Park (Binh Tan District), with a total of 2,500 apartments, total investment of 4,000 billion.
In addition, there may be a series of names in the field of real estates such as IPA Investment Group Joint Stock Company, Saigon Seafood Import-Export Joint Stock Company, Coteccons Construction Joint Stock Company, Tasco Joint Stock Company, Hung Vuong Seafood Company, Tracodi Industrial Development and Transport Investment Joint Stock Company …
Not easy to succeed
A leader of a large real estate corporation in the South said that the attractiveness of the real estate market recently has stimulated many domestic and foreign enterprises to pour money into the field, In that there are many businesses horizontal hand. However, it should be noted that real estate investment is not easy to succeed. Having more investment will make the competition more and more fierce.
“The new investment is not only important in terms of capital, but also in the vision and way of investing the project appropriately, targeting the target group to ensure good project liquidity at the beginning of the project.
There are new entrants into the market but they have had a great time researching before joining so their chances of success are higher. However, businesses that are on a par with seasonal crops when the market is heating is very easy to fail. The past money market in the past few years when the market is hot is something that businesses outside the industry need to take note of, “he shared.
Tran Ngoc Quang, a general secretary of the Vietnam Real Estate Association, said that the market is entering a period of intense competition, if not enough financial capacity, remind them carefully before entering the market to avoid “money loss, disability”. If possible cooperate with experienced businesses to accumulate experience, before officially launching the market with own brand.
Recognition of Real Estate Investment, many times, many businesses after a period of encroachment into real estate, due to lack of financial resources and experience, so began to show signs of “shortness of breath”. Typical example is the case of Licogi 13 Joint Stock Company.
With the ambition to enter the field of real estate to increase sales in this area, Licogi 13 has conducted a series of M & A deals, acquiring land funds for development or cooperation projects. However, it seems that too much investment in real estate that “forgets” the core business, has led to a slump in business results of Licogi 13.
Specifically, Licogi 13’s financial statement for the quarter I / 2017 continued to show the decline of this business when the revenue in the first quarter 2017 reached more than 134 billion, profit after tax was only 1.3 billion, plummeted 43% and 66% respectively over the same period.
According to the Ministry of Planning and Investment (MPI), in the first five months of 2017, real estate business was the leading number of new establishments with 1,859 enterprises, an increase of 72.8% for the same period of 2016; ranked second as finance, banking and insurance registered 1,553 enterprises, an increase of 38.9%; The third is education and training registered 1,304 enterprises, an increase of 31.3% …
In the whole country, in the first five months of 2017, 50,534 newly established enterprises with registered capital of $21,114,521,739, increasing 13.0% in the number of enterprises and 39.0% of registered capital compared with the same period last year.
In the first five months of 2017, there were also 13,458 businesses returning; 12,884 businesses temporarily suspended their business; 19,264 businesses temporarily suspended from registration or awaiting dissolution…
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