What does a late debut in the real estate sector mean?

August 12, 2022 - 13:47
The real estate sector has great potential but is also volatile and competitive. In Việt Nam, many real estate enterprises have witnessed great successes. However, at the same time, many others have experienced big failures and silently disappeared. So what will be a suitable direction for real estate businesses that make their debut late?

The real estate sector has great potential but is also volatile and competitive. In Việt Nam, many real estate enterprises have witnessed great successes. However, at the same time, many others have experienced big failures and silently disappeared. So what will be a suitable direction for real estate businesses that make their debut late?

Recently, TGV, a  newly emerged real estate enterprise, signed a strategic cooperation agreement with FPT Capital. This is a typical example of even enterprises still gaining trust and attracting investment from large funds to promote their potential and facilitate their business activities and development.

Masashi Nakajima - Chairman of the Board of Directors of Times Garden Vietnam., JSC (TGV), said that during this period it should be very careful for investment in real estate to be distinguished in the market.

Masashi Nakajima – Chairman of the Board of Directors of Times Garden Vietnam (TGV)

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Masashi Nakajima is a Japanese citizen and a seasoned businessman and has had various experiences working in many international companies, in charge of banking automation and real estate in the US, Canada, Japan, Korea, Taiwan, Hong Kong, and the Asia Pacific.

At the ceremony of signing the strategic cooperation agreement between TGV and FPT Capital on July 26, 2022, Masashi Nakajima, the representative of FPT Capital for management of the fund at TGV, received high trust from all members of the Board of Directors and was elected as the new Chairman of the Board of Directors of TGV for the term 2022 - 2027.

Representatives of TGV and FPT Capital signed a strategic cooperation agreement

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Nakajima, when taking over the position of the leader of TGV, which is considered a late debut in the real estate market, what did you think about the real estate market in this period and, in your opinion, what is the potential for TGV?

Real estate is not an accessible business, not only in Việt Nam but also in many other countries around the world. However, investment in real estate is never considered a loss because it will become our own property.

Therefore, the real estate market is always hot regardless of the economy. Việt Nam has a fast-growing and robust economy with many unique cultural features, so I believe there is still a lot of untapped potential in the Vietnamese real estate market. We must have the right way and choose the right path to achieve success.

Carrying the mission of proactively expanding projects in dynamic localities with a good business environment, especially in potential cities, TGV pursues building modern works but still keeping sustainable values, creating equitable economic development for regions as well as meeting the needs of local people.

At TGV, we always encourage creativity in design, planning, and business activities. Along with that, TGV constantly creates modern works based on environmental protection and preserving local cultural values ​​and quintessence, harmoniously balancing factors towards sustainable development, and at the same time giving top priority to the local community.

Having a distinguished orientation from other companies mainly focusing on big cities, TGV devotes their attention to more potential markets with innovative and different thinking with humanistic and meaningful purposes. TGV has received trust and expectations from large investors, typically FPT Capital. And that is also why, despite its younger age, TGV had not stopped growing and developing in recent years, especially after surviving through the hard time of three years when the whole world was seriously affected by the COVID-19 pandemic and other economic crises.

With such strong potential, how is it meaningful when receiving financial resources from a large investment fund like FPT Capital for TGV?

TGV's strength is developing business and distributing residence real estates, tourism real estates, industrial and services real estates. In particular, TGV has sponsored the planning of many projects. Since then, it has created a premise for developing the real estate market across Việt Nam's provinces and cities. These are our opportunities for investment and developing real estate projects.

With that strength, when trusted by investment funds, TGV will have more financial resources. In addition, with the participation of the Board of directors and extensive experience in domestic and international markets, this will be a significant advantage for TGV to continue promoting activities that are its strengths. Along with that, TGV will develop new fields that bring higher benefits to the community and build TGV to new heights, fulfilling its commitment to mutually beneficial cooperation with investors.

With the cooperation with such significant investment funds, what is the orientation of TGV going forward?

TGV is not only supported by strategic partners but also by international partners who are always ready to disburse large financial amounts at very reasonable concessional costs. It will initially be USD100 million in 2022 and expected to be USD200 million in 2023. This solid potential and a strong lever to help TGV realise its ambitious dreams.

TGV will continue to promote its strengths in the field of real estate business in small cities with solid growth potential, developing the M&A (mergers and acquisitions).

Moreover, we will invest in team development, improve human resource capacity, and enhance structure, governance and operation models so that TGV continues to be "strong inside and out." We will try to mobilise our strengths better and improve our capacity.

At the conference to promote the development of social housing for workers and low-income people on August 1, 2022, Prime Minister Pham Minh Chinh directed Ministries and provinces to focus on synchronising the tasks and solutions in the Government's Resolution No. 11/NQ-CP on the program of socio-economic recovery and development, including the development of social housing.

Provinces need to develop, adjust and supplement their local housing development programs in accordance with the Law on Housing, in line with the National Housing Development Strategy for the 2021-2030 period (approved by the Prime Minister under Decision No. 2161/QD-TTg dated December 22, 2021).

At the same time, the Prime Minister also stated that agencies and departments need to create the most favourable conditions in terms of planning, administrative procedures as well as bank credits, so that investment funds and real estate businesses can proactively invest in housing projects, especially houses for low-income people in localities, urban areas, etc.

This reflects the Government's close attention to the development of affordable commercial housing – a field that TGV is very interested in and has oriented its growth in the near future using its advantages of concessional capital from significant investment funds.

Thank you Sir.

It is not easy to survive and develop in the real estate business, a sector that requires big efforts, bravery, and a wealth of financial resources. TGV is one of the few fledgling real estate companies that has built its reputation and position in the market.

It is certain that with the right orientation and distinctness, TGV will continue to grow strongly, contributing to bringing a sublime and prosperous life to Việt Nam. We believe and expect that TGV will soon reach out to become a strong real estate enterprise.