Danh Khoi Group has recently made some milestones such as increasing capital, acquiring new projects to increase land funds, restructuring and especially continuing the strategy of standing on the shoulder of giants. Those have attracted attention of both domestic and foreign real estate investors. TheLEADER.vn has discussed the group’s development strategy with general director Nguyen Huy Cuong.
Ready for a new growth cycle
Despite several real estate businesses having been hit hard due to the impact of the Covid-19 epidemic, Danh Khoi has constantly increased capital, land funds and changed brand identity. Is the group preparing for a new growth cycle?
Mr. Nguyen Huy Cuong: Yes, we are focusing all of resources on preparing for a new growth cycle, a new era for Danh Khoi. It took several years for us to make enough preparation and momentum for a growth cycle in both quality and quantity.
We have planned and prepared carefully all aspects such as accumulating finance as well as relationships with many domestic and foreign financial organizations to have the most substantial resources for investment and business activities in the future. We have expanded land funds that can help us grow up continuously in a long term which probably last over 10 years. We have improved all personnel system by restructuring the group and recruiting well-known staff with many benefits that can attract talent for us.
Danh Khoi has also developed technology for management and sales to keep all activities in normal when working remotely or helping customers select the best products due to the Covid-19 pandemic. The impossibility in traditional way of offline sales or travel during the quarantine situation has encouraged the company to open online booking events, develop a new model of sales system to distribute a large number of products shortly to domestic and foreign markets.
Danh Khoi is expanding partnerships with foreign investors, especially big corporations in the real estate industry, to learn from each other about experiences in urban development and grow sustainably in the Vietnamese market and foreign markets later.
Finally, there is a change in brand identity which customers and partners can easily recognize Danh Khoi. We want to express Danh Khoi's vision, mission and core values in the current and upcoming period throughout our new brand image.
In the past two years, the Covid-19 epidemic has affected adversely to all business activities of the economy and the real estate industry cannot be excluded. It is right to say that it affects heavily to the real estate industry and we see this is a chance for Danh Khoi by focusing on preparing resources for development in the new period while the other businesses are struggling against the impact of epidemic.
During tough times, Danh Khoi always sees the light at the end of the tunnel. Till now, everything is ready and Danh Khoi has just begun a new stage in which is growth and confirmation of Danh Khoi’s position in domestic as well as foreign markets.
As you said, Danh Khoi is entering into a new growth cycle and currently operating 30 member companies and associates. What model will Danh Khoi develop?
Mr. Nguyen Huy Cuong: In each stage, we have different directions and strategies. If we talked about the strategy five years ago, we would focus on becoming one of the largest developers in Vietnam and the core of our activity is the real estate industry. We step by step changed from brokerage activities to investment and development with such projects as Barya Citi in Ba Ria – Vung Tau province, Lagi New City - Binh Thuan, The Aston Luxury Residence – Nha Trang, Takashi Ocean Suite Ky Co – Quy Nhon, Aria Da Nang, The Royal Boutique Hotel & Condo – Da Nang, and Aria Vung Tau – Block B.
However, in the development process of Danh Khoi there are many opportunities coming to us and the strategy will be changed time to time to seize the opportunities.
As a result, we follow a diversified-business strategy to optimize resources and take advantage of the group’s ecosystem, but the core business is still the real estate industry.
Along with the core business which is real estate industry, Danh Khoi Group expands other business activities related to the main field, including industrial parks, property operation and management services, housing, commercial centers and vacation products such as hotels and condotels.
Additionally, Danh Khoi owns the Cotec HealthCare hospital system, including 4 large hospitals such as Dong Nai General Hospital, Binh Dinh General Hospital, Huu Nghi Nghe An and Duc Giang International Hospital (in Hanoi). Thus, we choose the holdings model to maximize the benefits of the ecosystem owned by our group.
The return to Ho Chi Minh City market
In recent years, especially in 2020, Danh Khoi has carried out a series of M&A deals to increase the land funds. How much are Danh Khoi's total land fund and what is the development strategy of the land funds in future?
Mr. Nguyen Huy Cuong: Currently, Danh Khoi has been developing 30 projects with a total land fund of more than 600ha. We are developing such as Nhon Hoi 110ha area building high-rise area with 17 buildings (Takashi Ocean Suite Ky Co - Quy Nhon). This is a beach apartment area with permanent ownership. The others include Barya Citi (expansion area) in Ba Ria – Vung Tau province, Lagi New City – Binh Thuan, The Aston Luxury Residence – Nha Trang, Aria Da Nang, The Royal Boutique Hotel & Condo – Da Nang, and Aria Vung Tau.
Danh Khoi focuses on developing urban areas such as in Danang, large projects in Phan Thiet, Binh Duong, Tien Giang and Ho Chi Minh City for the remaining land funds. Recently, Danh Khoi has concentrated on developing projects in the coastal and surrounding area of Ho Chi Minh City to take full advantage and chances of the land funds.
Meanwhile, we keep approaching and acquiring significant land funds in Ho Chi Minh City and it is time for the comeback of Danh Khoi to develop Ho Chi Minh City projects. 2022 is a milestone for Danh Khoi returning to Ho Chi Minh City to develop products on its existing land fund.
Obviously, Ho Chi Minh City where Danh Khoi comebacks to its starting point is a perfect market for real estate development. Danh Khoi has planned and placed the first bricks for the northern market, but this story I will keep it in my mind and share it with you in future.
In addition, large urban areas will also be deployed soon in the central region. Dominating the Central market also plays a key role that Danh Khoi has set as a part of the group's development strategy.
Most of the company’s projects are located on the coast. Thus, will the company expand to other areas?
Mr. Nguyen Huy Cuong: In the short term, Danh Khoi continues toinvest in the housing and coastal products segment which Danh Khoi isimplementing. The products Danh Khoi are supplying to the market such as AstralCity - Binh Duong, Barya Citi in Ba Ria - Vung Tau province, Lagi New City -Binh Thuan, The Aston Luxury Residence - Nha Trang, Takashi Ocean Suite Ky Co –Quy Nhon, Aria Da Nang, The Royal Boutique Hotel & Condo – Da Nang, andAria Hotel & Resort - Vung Tau, have great potential, prime location and pulling power to customers.
In the next stage, in parallel with the segment of land plots and apartments, villas in current projects and the upcoming Ho Chi Minh City area, Danh Khoi aims to grow sustainable products such as office buildings, urban areas, resorts for the elderly. Danh Khoi has prepared all land funds for these product segments.
Expanding foreign partners
Danh Khoi has been successful with the strategy of "standing on the shoulders of giants" when cooperating with leading Japanese companies such as Sanei Architecture Planning, G-7 Holdings Inc, Anabuki Kosan Group. How will it be moving on?
Mr. Nguyen Huy Cuong: Personally, “standing on the shoulders of giants” is not correct because Danh Khoi cooperates with major partners to promote all advantages of both sides based on mutual benefits.
We appreciate the concern and trust of Sanei Architecture Planning, G-7 Holdings Inc and Anabuki that have accompanied Danh Khoi since the early days. The cooperation is built based on mutual benefits and trust. This is also Danh Khoi's key points that we use in development and cooperating with partners.
Currently, not only Japanese partners but Danh Khoi also has got other foreign partners who are ready for cooperating with us in the sectors we are implementing. We all believe and respect each other to develop and aim for the best performance. Through cooperation, we feel that we are trusted more and more. We are really appreciated.
In 2021, we cooperated with two big foreign partners. These are partners with much experience in the field of construction as well as real estate development and they also have as solid financial potential. We have completed the cooperation procedures in early 2022, Danh Khoi will announce this activity. For now, let me keep this secret.
In upcoming years, Danh Khoi will strengthen and accompany current partners; on the other hand, we will continue to look for new partners in line with our development strategy to cooperate in the field of business - real estate and other appropriate fields for Danh Khoi's ecosystem.
By 2025, how do you want to see Danh Khoi?
Mr. Nguyen Huy Cuong: Be confident; by 2025, I want to see Danh Khoi become a leading real estate development group in the country and abroad. Danh Khoi - we have enough ability to do and we will try all the best to achieve.
Thank you so much!