(Photo: Novaland)
Vietnamese developer the Novaland Group, one of the leading property developers in the country with more than 40 residential projects in Ho Chi Minh City and 27,000 other property products serving over 250,000 customers, announced its business development strategy at its recent annual general meeting. It expects to record turnover of $782 million and after-tax profit of around $143 million this year, increases of 17.7 and 0.7 per cent compared to 2018.
Its board of management approved its business results in 2018, with net revenue of $664 million, up 31 per cent year-on-year, and after-tax profit at around $142 million, up 58 per cent.
The group also expects to hand over 5,900 products and introduce 6,500 in 2019 in order to reach its goals, up 42 and 44 per cent, respectively.
Novaland has recently expanded its business to tourism property, with a range of large-scale projects in travel hotspots.
Of its vast land fund of more than 2,700 ha, Novaland has reserved 25 per cent for housing development and the remainder for tourism property.
The second phase of Novaland’s strategy started in 2018, focusing on residences, eco-urban complexes, and tourism complexes. The group has now expanded to holiday and tourism properties with three key brand names: NovaHills, NovaBeach, and NovaWorld.
According to Mr. Bui Xuan Huy, CEO of Novaland, its vision in 2019 is heading towards a more complete ecosystem of products. “Novaland aims to be the leading economic group in real estate, finance, tourism and infrastructure development,” he said. “In the near future, we will continue developing our real estate development and tourism properties. To support real estate development, we will also develop infrastructure in areas where we have projects. In the long term, we will focus on developing different types of finance investment.”
To maintain long-term profit, Novaland has set up a support system that creates a complete eco-system, called NovaTourism, which will meet all requirements.
Novaland has also signed deals with consultants such as BCG and Mc Kinsey to coordinate with local authorities where projects are located, to set up a long-term tourism development strategy. “This creates sustainable development for local authorities, developers, and all of society,” Mr. Huy added.
All projects developed by Novaland are located in “golden” areas with complete transport systems and a range of amenities and facilities.
Novaland plans to introduce about 2,000 hospitality products to the market this year. It will introduce three properties under its NovaWorld brand: NovaWorld Phan Thiet, NovaWorld Ho Tram, and NovaWorld Mekong.
Vietnam is forecast to welcome 21 million international visitors by 2020 and 47 million a decade later, for average growth of 9-11 per cent per year. According to Mr. Adam Bury, Senior Vice President, Investment Sales Asia, at JLL’s Hotels & Hospitality Group, Vietnam should map out a more advanced plan for tourism development, because it now lags behind Thailand even though its advantages far exceed it.
