2020 is considered a tough year of the worldwide economy due to the negative impacts of Covid-19. Vietnam is no exception, and several industries including real estate were given a heavy punch. As opposed to general, Danh Khoi continuously made a mark by prominent M&A deals. Could you give us some details about how many deals Danh Khoi had done and the plan for the next years?
Nguyen Huu Quang: In general, the world has experienced a difficult year due to the Covid-19 pandemic and Vietnam is definitely not an exception. However, the country still posed a GDP growth rate of 2.91 per cent and one of the countries which had high growth rates last year.
It means that the pandemic has affected Vietnam not as much as others. However, it still causes certain effects on the economy as there are a large number of projects offered for sales in 2020. We had received many offers during a long period of time.
The corporation’s strategy at this moment is focusing on the clean land fund to make a preparation for the development of next years. We realized that 2020 was a good time for Danh Khoi Group to take advantage and expand land funds at the most affordable price and to get the initiative in making decisions.
The locations which Danh Khoi is concentrating on is the best one at this moment and it is also suitable for our business strategy in the next 5 and 10 years. For instance, we have chosen the position of land fund located in Dalat, Danang, Quy Nhon, Phan Thiet, and especially Binh Duong.
Despite the Covid-19 pandemic, 2020 is a milestone for Danh Khoi Group thanks to the effort of BOM, BOD and the entire employees of the group. Last year, we successfully found out and completed three M&A deals and there are still some projects in negotiation at this time.
There was another significant event at the end of last year when Netland real estate JSC turned its name into Danh Khoi Group. Experts in the finance and real estate industries, said that the changes in brand identity as well as boosting M&A deals are signals preparing for a new development strategy. Could you tell us more details about this?
Nguyen Huu Quang: Netland real estate JSC was officially changed its name to Danh Khoi Group JSC, the abbreviation is Danh Khoi (stock code on HNX: NRC) on December 16, 2020 and on January 5, a ceremony was organized to announce the changing as well as the group's new logo.
This is not only a big event but also a remarkable turning-point, bringing Danh Khoi into a new era of rising up. We want to build a strong Danh Khoi Group that can rapidly expand in the domestic market and become one of the biggest corporations in Southeast Asia.
Does the presentative office in Japan which was opened in 2019 help Danh Khoi mobilizing capital resources for its new development strategy?
Nguyen Huu Quang: In March 2019, Danh Khoi Group opened a representative office in Tokyo, which has been operating very effectively. Through the office in Tokyo, Danh Khoi has introduced so many projects to Japanese investors and we also organized two events to introduce investment opportunities to Danh Khoi in Tokyo in 2019. In 2020, we had prepared the plan for conferences to attract investors in Japan and Korea market but the Covid-19 pandemic has broken the plan.
However, IR activities are working as normal through our representative offices, representatives, and consulting organizations. We are enhancing the operation of representative offices to further promote the brand of Danh Khoi to foreign investors, especially Japanese. Currently, some Japanese groups are strategic partners of Danh Khoi Group, such as Sanei Group, Anabuki Group and G7- Holdings.
Danh Khoi is diversifying investors from other countries, not only Japanese as previously. We have held some meetings and step by step completed the final stages of negotiation.
In addition to capital resources from foreigners, Danh Khoi focuses on raising funds from domestic investors through issuing shares and bonds for strategic partners. Last year, Danh Khoi Group received the license to increase the charter capital to VND1,189 billion.
With capital resources raised in the domestic market, from foreigners and bonds, the corporation will have sufficient capital for developing projects in the next period. In addition, we will borrow from banks to minimize the risk and maximize diversified capital resources as planned.
The market has witnessed the success of Danh Khoi by opening sales constantly while others did not. How can Danh Khoi do that?
Nguyen Huu Quang: 2020 is a successful year of Danh Khoi by opening sales of several projects. We sold more than 4,000 property units last year. We launched sales of The Aston - a premier apartment project in Nha Trang or The Astral in the central of Thuan An city, Ky Co Gateway in Quy Nhon and The Royal in Danang. This is not a small number during the pandemic outbreak which led to lockdown twice in Vietnam.
The pandemic has changed investors' habit. However, Vietnam has controlled it very well. In an optimistic view, the real estate business is still stable and has not been affected too much by the pandemic.
During the pandemic time, investors want to invest in real estate segments that have sufficient legal procedures. In addition, investors have many chances to buy better products at affordable prices.
This is the criteria for Danh Khoi to bring suitable products for customers during this time and in the future when the pandemic is not totally controlled. Currently, Danh Khoi is preparing for launching products that will create investment opportunities for customers when the Covid-19 pandemic is under control.
what is the plan of Danh Khoi Group in 2021 and in the next stages?
Nguyen Huu Quang: This year, we will focus on projects which have got prime location such as Nha Trang, Danang, Da Lat, Quy Nhon, Vung Tau, Phan Thiet, Binh Duong, and Ho Chi Minh City. Those all are quality products suitable to many investment criteria of customers.
We will also boost cooperation with experienced foreign partners to develop and invest in properties, metropolises that will bringing customers beautiful products at affordable prices.
2021 would be a remarkable year of Danh Khoi Group. We aim to earn VND224,000 billion in revenue till 2025 and CAGR is about 41.5 per cent. The entire corporation shows the determination to realize the vision of becoming a leading real estate group in the region.