Vinhomes Chairman reveals plan to 'launch' social housing this year

Mr. Pham Thieu Hoa - Chairman of the Board of Directors of Vinhomes Joint Stock Company - said that two social housing projects in Thanh Hoa and Quang Tri are planned to open for sale in the fourth quarter; other projects in Hanoi are still in the process of completing procedures.

On April 27, Vinhomes Joint Stock Company (VHM) held the 2023 annual general meeting of shareholders (AGM).

Reporting to shareholders, Vinhomes representative said that by the end of 2022, the company sold nearly 31,000 apartments, villas and commercial townhouses with a total value of more than 128,000 billion VND, including retail and large lot sales.

Total consolidated revenue in 2022 reached nearly 62,400 billion VND, while profit after tax reached more than 29,100 billion VND, completing 97% of the yearly plan. VHM paid more than 35,800 billion VND to the budget last year.

In 2023, the market is forecasted to have many challenges but also many opportunities. VHM sets a revenue target of VND 100,000 billion and after-tax profit of VND 30,000 billion.

Mr. Pham Thieu Hoa - Chairman of Vinhomes Board of Directors shared about the plan to build social housing in 2023 (photo: Organizing Committee).

Mr. Pham Thieu Hoa - Chairman of the Board of Directors (BOD) of Vinhomes - said that regarding project development activities, the company will continue to research and launch new green and smart urban projects in 2023. The specific progress, according to Mr. Hoa, will "depend on the market situation".

Responding to shareholders’ questions about upcoming key projects, Mr. Hoa said that some are in the process of implementing legal procedures. According to him, the procedures have been slower than expected in the past, but the company continues to make efforts to complete the implementation.

“The implementation of major projects that can be opened for sale in 2023 also depends on the market situation,” Mr. Hoa emphasized.

Sharing more about the situation of each project, the Chairman of VHM said that the company is currently focusing on selling at the Ocean Park 2 and 3 projects. The Lang Van ( Da Nang ) and Ha Long Xanh (Quang Ninh) projects are in the process of completing procedures. Meanwhile, the projects in Dong Anh and Dan Phuong (Hanoi) can open for sale in 2024 when legal procedures are completed.

Regarding the social housing segment, Mr. Pham Thieu Hoa said that two social housing projects in Thanh Hoa and Quang Tri are planned to open for sale in the fourth quarter. Other projects in Hanoi are still in the process of completing procedures.

Recently, Vinhomes has proposed that the city complete procedures to participate in the social housing project, but Hanoi is still implementing the procedures. According to Vinhomes leaders, the most necessary thing now is to have the detailed planning 1/500 approved, organize a bidding to select investors, and then businesses can participate. However, these procedures are dependent on state agencies.

At the conference to promote the development of social housing for workers and low-income people held last year, Mr. Pham Thieu Hoa proposed shortening the approval procedure for social housing projects to 90 to 120 days, instead of the current 600 days.

Previously, Vinhomes started to build social housing with the Happy Home brand. This enterprise determined that this would be the key development segment in the coming time with the goal of "changing the concept of social housing".

After breaking ground on two projects in Thanh Hoa and Quang Tri, this year Vinhomes will complete legal procedures to implement social housing projects in many places such as Hai Phong, Hung Yen, and Khanh Hoa.

At the end of the first quarter, VHM's revenue and profit both increased sharply compared to the same period. Specifically, the total consolidated net revenue recorded in the period reached nearly VND 29,300 billion, an increase of 228% compared to the first quarter of 2022, mainly due to the handover of 2,600 low-rise real estate units at Vinhomes Ocean Park 2. Total consolidated profit after tax reached more than VND 11,900 billion, an increase of 152% and completing 40% of the yearly plan.

As of March 31, total assets were nearly VND 380,000 billion and equity was VND 160,000 billion, up 4.4% and 8% respectively compared to December 31, 2022.

In 2023, Vinhomes plans to offer up to VND10,000 billion in bonds through one or more issuances. The bonds have a term of 12 months or more and a maximum of 60 months from the date of issuance. The maximum coupon interest rate is 15%/year.

According to Tienphong.vn