Effordability and quality merge in Nam Long project
Nam Long, one of the leading privately-owned real estate developers in Vietnam, has recently launched 450 affordable villas and townhouses under the Valora brand name. VIR’s Bich Ngoc talked to CEO of Nam Long Steven Chu Chee Kwang about the new brand and his expectations for Nam Long towards the year’s end.
How will the Valora products that you have just launched in Ho Chi Minh City distinguish themselves from other products on the market?
Valora is a new brand name under Nam Long which is based on our “three-P” criteria: Peaceful, Proficient, and Perspective. These products, however, will be priced very reasonably starting from just VND2.5 billion ($113,600) per townhouse and VND6 billion ($272,700) per villa.
Built according to international standards of quality and security, Valora comprises the most sought-after features of both apartments and landed property in Vietnam. After EHome and Flora, two affordable product lines for first home and mid-income buyers, Valora is another highly efficient product at a reasonable price for successful professionals by Nam Long.
Valora is the result of our co-operation with two Japanese giants – Nishi Nippon Railroad and Hankyu Realty, companies which have more than 100 years of experience in the global market. Valora, once put into operation, will be managed in line with Japanese standards, thus offering the highest quality in home management for Valora’s homebuyers.
How will the Valora products be developed in the time ahead?
We plan to sell 450 Valora products on the market by the end of this year. The units will be in Valora Camellia in district 7, Valora Fuji and Valora Haruka which are both in district 9, and the first phase of Valora Nguyen Son near District 7 of Ho Chi Minh City.
Nam Long has a long history of collaboration with foreign partners, can you review this process so far?
Over the course of nearly 25 years operating in Vietnam, we have had collaborations with many prestigious foreign partners, including ASPL, Nam Viet company, VAF, IFC, and Ibeworth, companies which have supported Nam Long in property development as well as finance management. In addition to this impressive list, Nam Long has had other well-known shareholders such as Seafarer, Swiftcurrent, Probus Asia, and VIG. Our latest strategic partners are Iberworth of Keppel Land, Hankyu Realty, and Nishi Nippon Railroad.
Japanese investors are considered some of the most demanding investors in the world. How did you successfully maintain your partnership with them?
Nam Long has nearly 25 years’ experience in real estate in Vietnam. We have always been very transparent in our dealings. In our first project with a Japanese partner – the Flora Sakura– we had financed the project for almost a year before successfully finalising the agreement. Japanese investors are very careful concerning details and prepare very well for all matters. From this we learned how to make resolutions while remaining steadfast. The difference between Japanese investors and other foreign investors is, in a lot of cases, Japanese investors want to be involved in developing the projects as well as involved in their management and operation.
How did Nam Long perform in 2015?
Today, Nam Long’s total assets are worth over VND5 trillion ($227 million). We also have a land bank of 576 hectares in promising locations and with government planning that guarantees our sustainable development for the next ten years.
Last year we achieved tremendous growth with more than 2,000 units sold. Revenue and profit increased by 45 per cent and 115 per cent respectively compared to 2014. For the year-end of 2015, the net revenue of Nam Long reached VND1.2 trillion ($54.5 million).
What is the business plan in 2016?
In 2016, we will complete the development and handover of our current projects: EHome 3 and 4, the Bridgeview, Flora Anh Dao, and Valora Camellia. In addition, we will accelerate the legal and infrastructural completion and seek investors to implement two new projects, Haruka Residence and Hoang Nam.
In 2016, target sale units increased by 62 per cent. Target consolidated revenue is increasing by 153 per cent compared to 2015 and consolidated profit targets will increase by at least 75 per cent compared to 2015. These targets give us a solid foundation to implement our three-year business plan.