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VINHOMES JOINT STOCK COMPANY

VINHOMES JOINT STOCK COMPANY


Project Description

OVERVIEW

Vinhomes Joint Stock Company (VHM), formerly known as BIDV-PP Urban Joint Stock Company, was established in 2008. The Company has its main business in investing, developing and trading houses, offices and relevant items. According to CBRE, VHM occupies approximately 15% marketshare in the number of apartments sold in Hochiminh and Hanoi from 2015 to 2017. In addition, VHM also develops and trades office projects for lease. VHM’s office projects are located next to Vinhomes or VinCity projects or works as a component of complex projects developed by VHM. VHM has been listed and traded on Hochiminh Stock Exchange (HOSE) since May 2018.

MAIN BUSINESS

  • Investing, developing and trading houses, offices and relevant items;
  • Ground clearance, completion of construction works;
  • Providing machinery and equipment hiring services;
  • Supplying hotel, restaurant, entertainment services;
  • Producing and trading energy;
  • Trading constructing materials;
  • Others under the business license.

MARKET POSITION

  • According to CBRE, VHM occupies approximately 15% marketshare of apartments sold in Hochiminh and Hanoi from 2015 to 2017, and leaves the follower with only 4% behind.
  • Besides, the Company is operating a close real estate development model from project development, general plan, design, site clearance, construction, sale, hand-over and post-sale management and maintenance.
  • In addition to on-going real estate projects, VHM also develops and trades office projects for lease. VHM’s office projects are located next to Vinhomes projects or works as a component of complex projects developed by VHM. According to the estimation of Savills, VHM currently owns 1.6 million m2 and 1.7 million m2 of offices for lease in Hanoi and Hochiminh respectively.
  • As a subsidiary of Vingroup, VHM has favorable conditions to invest and develop real estate projects,  enjoys a close relationship with its Parent company’s partners, and takes advantage of Vingroup ecosystem.

GROWTH STRATEGY

  • Developing real estate properties under the brand Vinhomes at high-class segment for high-income customers in Hanoi, Hochiminh, other big cities and provinces;
  • Developing projects under the brand VinCity towards medium-class people in Hanoi, Hochiminh and satellite cities;
  • Following the strategies in development and operation of large-scale complex urban areas and satellite urban ones, including office components for lease;
  • Developing and expanding Vinmec high-quality healthcare system, including hospitals, clinics and research centers;
  • Taking advantage of Vingroup ecosystem;

PROSPECTIVE

  • Free trade agreements have been signed recently, which lays a solid foundation for foreign direct investment to flow into Vietnam strongly. The rapid urbanization pace will also boost the demand in construction in the upcoming time. In addition, Vietnam government has issued policies to make the real estate market more transparent to attract more investors.
  • According to BMI’s forecast, Vietnam Construction Industry will continue to grow in the coming years. In addition, strong FDI flow and economic recovery are expected to boost the construction of houses, factories and warehouses in Vietnam. These factors will actively impact on Vietnam real estate.

RISK

  • Housing market is so competitive because many real estate companies are decreasing their prices. Moreover, the supply of apartments in HCM and Hanoi now are in excessive.
  • Because of the limitation in real estate credit and the low demand for low level houses of people, the sale of apartment of VIC is not so high. This trend is forecasted to continue in next 2 or 3 years