Vinhomes aims for $1.4 billion profit this year

Vinhomes, Vietnam's premier real estate developer, is setting its sights on a hefty profit of VND35 trillion ($1.4 billion) in 2024.

The disclosed documents from the upcoming shareholder meeting reveal Vinhomes' strategic roadmap, projecting a business revenue of VND120 trillion $4.8 billion) for the year 2024.

These projections represent increments of 16 per cent and over 4 per cent, respectively, when compared to the figures of 2023.

Should these goals be met, Vinhomes would notch a record-breaking revenue in its portfolio. However, despite the forecasted uptick in profits from previous years, the projected figures still trail behind the notable sum recorded in 2020, which stood close to VND40 trillion ($1.6 billion).

Vinhomes' board of directors envisions a challenging economic landscape in 2024, both on a macro level and within the real estate sector specifically.

To navigate these headwinds, the company plans to bolster its distribution channels, leveraging its existing nationwide network of agents in tandem with a strengthened self-distribution system.

Furthermore, Vinhomes intends to revamp its online business infrastructure, aiming to enhance the overall purchasing experience, promote policy transparency and ensure pricing clarity across its product range.

This online segment is anticipated to form a vital pillar alongside its other distribution channels, bolstering market liquidity in real estate retail operations.

The company is developing projects such as Vinhomes Ocean Park 1, Vinhomes Smart City in Hanoi, Vinhomes Ocean Park 2 and Vinhomes Ocean Park 3 in Hung Yen prrovince, Vinhomes Grand Park in Ho Chi Minh City and Golden Avenue in the border town of Mong Cai.

Vinhomes will prioritize the rollout of new ventures with favorable legal standings to underpin revenue and profit generation in 2024, while also advancing its social housing initiatives.

VNDirect Securities Company forecasts an upward trajectory in Vinhomes' revenue for the year, projecting a 10.5 per cent increase compared to the preceding period, reaching VND119 trillion. Net profit is expected to follow suit, rising by 15.1 per cent to VND43.5 trillion.

With major projects like Vinhomes Vu Yen, Vinhomes Co Loa, and Vinhomes Wonder Park in the pipeline for the latter part of 2024, Vinhomes is poised for significant activity.

Additionally, according to Shinhan Securities, the company plans to introduce and deliver Vinhomes Vu Yen in Hai Phong and Vinhomes Golden Avenue in Mong Cai, while proceeding with the sale and handover of remaining segments of Vinhomes Ocean Park 2 and 3.

The collective result, as forecasted, could see Vinhomes' total revenue for 2024 soar to VND139 trillion, marking a 14.6 per cent surge compared to the same period last year.