Dr. Lawyer Doan Van Binh recalls the period in the 1990s, four years after the Doi Moi reforms of 1986, when the Company Law and the Sole Proprietorship Law ushered in a new era for the development of Vietnam's economy. Private enterprises went from "nonexistent" to "existent." Today, nearly 700,000 private businesses operate in Vietnam. The private sector contributes nearly 45% of GDP, about 30% of tax revenue, and creates jobs for 85% of the country's workforce. Businesses established between 1990 and 2000 are considered the first generation. During this 10-year period, there were only 40,000 businesses, and they had to seek permission from the Prime Minister for every action.
CEO Group was established on October 26, 2001, considered part of the second generation of Vietnamese businesses, following key historical milestones: Vietnam's official integration into the international community by joining ASEAN in 1995 and the groundbreaking Law on Enterprises in 1999. The global market opened wide when Vietnam joined the WTO in 2007. Opportunities abounded, but so did challenges. Over 23 years, CEO Group has weathered three crises: 2007-2008 (financial crisis), 2011-2013 (real estate freeze), and 2020-present (the "Black Swan" event of Covid-19 and unprecedented difficulties in the real estate market due to factors such as market confidence, legal framework, capital, supply and demand, etc.).
The founder of CEO Group shared, "In 2007, when we started construction on the CEO Tower project, a headquarters combined with office space for rent , we had to borrow from banks with an interest rate of 18% per year. During the period from 2011 to 2013, we had to borrow from everywhere to have the cash flow to cover part of the company's operating costs. From 2020 to 2021, we had to hit the 'pause' button due to the pandemic. Over the past five years, most real estate businesses have been unable to implement projects, sell products, or collect receivables, leading to depleted cash flows and sharp declines in revenue and profit. For any business to maintain employment and income for its employees during this time has been a tremendous effort."
Listing story: A three-syllable legal entity name and the stock symbol CEO
According to Dr. Lawyer Doan Van Binh, naming a business is as important as naming your own child: "The first name appeared in the autumn of 2001 - VITECO (Limited Liability Company). Five years later, we began exploring the transition to a joint-stock company to flexibly seize development opportunities. When we carried out the procedures to register the new business, we discovered that a state-owned joint-stock company named VITECO already existed. If we wanted to proceed, we had to change to a new name. But what name?"
In 2006, Vietnam hosted the 14th APEC summit. I had the opportunity to attend the APEC CEO Summit, which broadened my understanding of business and influenced my decision on what to name my company. Actually, I had previously read about Donald Trump's approach to naming his company, Trump's Organization (in the book Think Big to Succeed), and Akio Morita's reasoning behind the name Sony (in the book Made in Japan). Trump used the word "Organization" instead of "Group," "Company," or "Corporation" to convey his desire to balance profit-seeking with contributing to the community. Moreover, when I was studying economics at the National Economics University (NEU), I remember my marketing professor, Dr. Phan Dang Tuat, always emphasizing the importance of 'the difference.' Many books also advise choosing concise names for businesses, like Nokia, Nike, BP, Total, UPS, HP, Intel, and IBM. A three-syllable legal entity name is easier to remember, leaves a lasting impression on customers, saves time and money on documents and printing, and simplifies naming products, services, and stock symbols when listing on the stock exchange.
"CEO Group was founded in 2007. The name 'CEO' was initially an acronym, with 'C' standing for Construction and Commerce, 'E' for Education and Estate (real estate), and 'O' for Organization. It represented an organization specializing in construction, commerce, education, and real estate, inspired by the Trump Organization. Later on, many people asked if 'CEO' stood for Chief Executive Officer. Since 2014, the company's stock has been listed on the Hanoi Stock Exchange (HNX) under the symbol CEO, without any abbreviation needed.
Event commemorating the 10th anniversary of CEO's listing on HNX
On January 16, 2023, in Hanoi, CEO Group held a solemn ceremony to receive the Second Class Labor Medal awarded by the President of Vietnam for its outstanding achievements in implementing projects that contribute to socio-economic development.
Grow fast or grow sustainably?
September 29, 2014, marked the first day of trading on the Hanoi Stock Exchange (HNX). At that time, many CEO Group shareholders proposed using maximum financial leverage to achieve rapid growth. However, the founder and the Board of Directors persisted in advocating for a more cautious approach, based on these key principles:
(1) The real estate sector is inherently “sustainable” and cannot pivot as rapidly as the “stock market;
(2) Ability to absorb capital effectively when human resources and project implementation experience are not compatible;
(3) Risk if loan capital/equity is high...
Sustainable development goals are supported by shareholders and investors. Recently, companies that have over-leveraged themselves are paying a heavy price for crossing the 'three red lines'!
After many years of operation as a real estate developer, CEO Group has made its mark with a series of key projects in numerous locations across the country, including Hanoi, Ha Nam, Quang Ninh, Quang Binh, Khanh Hoa, Kien Giang, and more."
CEO Group has made a name for itself with a series of key projects in various locations across Vietnam.
"From its humble beginnings, CEO Group has risen to become one of Vietnam's leading real estate brands, boasting an ecosystem of 26 member companies. Aiming to be one of the top private multi-sector corporations in Vietnam, CEO Group focuses on three core business pillars: Real Estate, Construction, and Services.
CEO Group is committed to understanding customer needs and market trends. Instead of chasing short-lived trends, CEO pours its heart into developing projects with lasting value, catering to the residential, commercial, and leisure needs of the people.
CEO Group's real estate projects are always designed with high-quality standards, not only in infrastructure but also in amenities and accompanying services. This increases long-term value and ensures customer satisfaction. Furthermore, CEO Group emphasizes environmental factors, aiming to develop green, smart, and friendly urban areas.
In 2021, CEO Group ranked 149th in the Top 500 largest private enterprises in Vietnam and is moving towards the goal of becoming one of the leading multi-sector private corporations in Vietnam.
Key achievements
Qualitative assessment:
01: Significant growth achieved
02: Good liquidity
03: Expanded opportunities for capital mobilization
04: Transparent governance
05: Enhanced brand recognition and market positioning
06: Increased competitiveness
07: Strengthened financial capacity to participate in bidding and execute large-scale projects, including land use projects.
CEO Group's consolidated business results for the second quarter of 2024 show total revenue of VND 406.5 billion and a net profit of VND 14 billion. The company's accumulated revenue for the first six months of 2024 reached VND 726 billion, with an accumulated net profit of VND 49.5 billion .
In addition, the Group's production and business situation in the second quarter of 2024 showed several positive points. As of June 30, 2024, compared to January 1, 2024, payables decreased by VND 445 billion; cash and cash equivalents reached VND 1,031 billion. Net cash flow from investing activities was positive at VND 297 billion.
"Like many other entrepreneurs, once we have moved beyond the concerns of bread and butter, our sole objective is to contribute, even in a small way, to the growth of the Vietnamese business community, so that the name of Vietnam resonates ever more strongly on the international stage". Dr. Lawyer Doan Van Binh said.
Things to improve for better performance in the coming time as the market rebound
According to Dr. Lawyer Doan Van Binh, to achieve more sustainable development in the new phase, CEO Group needs to continue focusing on the following areas:
- Increasing the company's value;
- Boosting revenue and profit to enhance Earnings Per Share (EPS);
- Proactively managing Investor Relations (IR);
- Diversifying products and services to ensure stable cash flow;
- Seeking long-term strategic shareholders;
- Effectively implementing Environmental, Social, and Governance (ESG) practices: Enhancing the quality of human resources, applying technology in management, and upgrading software to comply with increasingly stringent regulations (professionalism and transparency) in accordance with legal requirements for capital raising, bond issuance, and financial reporting in line with international standards, etc.
