Vingroup’s location selecting strategy
Segmenting product line must come from a target market defining strategy. In particular, Vingroup identifies different customer demographics for different product segments. This is also the “north star” for location selecting strategy – the most important factors in determining the desirability of a property.
For Vinhomes, urban locations that are either close to downtown, prime real estate or in possession of unique ecological advantages are prioritized. A number of Vinhomes branded high-end projects simultaneously converge on two of the above values, such as Vinhomes Golden River and Vinhomes Central Park located in the center of District 1 and Binh Thanh District looking towards the Saigon River or Vinhomes Riverside at the heart of Long Bien District, Hanoi, enjoying massive green space and a large span of water surface. Other projects like Vinhomes Metropolis at Lieu Giai, Hanoi, are said to sit on “diamond land”.
Therefore, when Vingroup announced its participation in the mid-range real estate segment with VinCity, areas where the corporation chose are set on a major breakthrough. According to Vingroup, for this product line, good location must have favourable transportation to different key areas, future investment into infrastructure and all-around potential for strong prosperity. Especially, these locations must possess large land capacity to develop huge, synchronous urban cities. This location selecting strategy allows Vingroup to offer urban home ownership opportunities to tens of thousands of people wanting to live in the capital.
Gia Lam, Hanoi houses the first VinCity project
In Hanoi, Vingroup launched the first VinCity Ocean Park in Gia Lam area. There are many reasons why Gia Lam is favoured by Vingroup for their huge 2018 project.
First of all, Gia Lam is still considered Hanoi’s urban area. It is only about a 10-20 minutes’ drive to central districts by many transportation options. Most of those options are open roads with no congested routes. As Gia Lam is connected with large bridges and national highways like Route 5, Route 5B, Thanh Tri Bridge, Vinh Tuy Bridge or Chuong Duong Brigde, convenient travel for residents is guaranteed.
Secondly, Gia Lam is an important local link connecting East Hanoi provinces like Bac Ninh, Hung Yen, Hai Phong, and Hai Duong. Those are also cities of economic development, increasing high-level demand for cross-trade with Hanoi. Thus, Gia Lam’s future economy is even more exciting.
Lastly, Gia Lam was announced as one of the cities in Hanoi’s future planning strategy by the People’s Committee of Hanoi. Accordingly, Gia Lam is determined to become a large urban area for city residents, reducing the core central housing burden. The government has also approved the investment in the building of four new bridges crossing the Red River and the Duong River reaching a total capital of over 30 trillion dongs. These factors have dramatically pushed Gia Lam’s land price recently.
In brief, it is a tough task to find a large enough piece of land with developed infrastructure for a massive project when Hanoi is increasingly becoming scarce for land. According to VinCity, owning a house was once out of reach, but for many people it is now starting to turn into reality. In addition, when these great projects are completed in the future, cities will become more civilized and modern.
