Nam Long expands its ambitions with Japanese connection

June 19, 2019 | 10:00
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Residential areas in Vietnam are becoming an increasingly appealing investment opportunity for experienced Japanese groups wishing to make their mark in the property sector.
nam long expands its ambitions with japanese connection
Leaders of Nam Long, Nishitetsu, and Hankyu Hanshin teamed up for another residential venture

One such a location, Mizuki Park, last year successfully attracted buyers shortly after the first phase launch of 1,400 Flora Mizuki condominiums. Township like Mizuki Park, run by Nam Long Group, have been developed in co-operation with Japanese partners after increasing demands for higher quality and better living standards.

Five years ago, Nam Long was successful in leading the affordable home segment with a product named EHome. However, realising the need to reach even higher standards, Nam Long leaders shifted investment structures towards higher-quality products like Flora condominiums and Valora villa/townhouses in townships. These products are more affordable compared to many other projects in the same segment of the market.

“Meeting the real wishes of buyers is to meet the commune’s wishes as well as meet the demand of having high-quality residential areas. This is also the main function towards keeping our company moving forward,” said Nguyen Xuan Quang, chairman of Nam Long.

The Japanese groups doing business with Nam Long are two giants with more than 100 years of history between them, known as Hankyu Hanshin Property Corporation, and Nishitetsu Group. For this collaboration, Nam Long contributed land funding and a long history of experience in the construction and real estate market of Vietnam. Meanwhile the Japanese partners, along with providing finance, also shared their experience in housing and residential development in areas with railway system connections, not only in Japan but in other markets such as Bangkok city of Thailand.

Since 2015, Nam Long and its partners have developed many top-class residential areas in Ho Chi Minh City such as Flora Anh-Dao, Fuji Residence, Kikyo Residence, Mizuki Park township, Akari City, and Waterpoint township.

As part of the agreement between the groups, investment capital is shared between all sides. This fair sharing is a statement of their activities as well as showing the balanced status between the sides in controlling the business.

“For foreign partners, the key factors in encouraging their investment and maintaining co-operation include a long-term vision and business strategy, governing capacity, transparency, commitment, and valued addition for the whole of society,” said a representative from Nishitetsu Group.

“Apart from advantages in financial resources and deep knowledge of the local market, Nam Long has always been professional when keeping its consistent commitments in the construction and hand-over schedules of projects,” he continued. “Nam Long always has strictly obeying criteria in the international governing of joint ventures based on a strong management system.”

The long term co-operation with Japanese partners has helped Nam Long attain good financial sources, helped provide a competitive financial policy to its buyers, and also opened up access to the advanced management skills of global property players.

Nam Long is currently one of the few investors with the lowest loan proportion, at under 0.2 times. Projects with Japanese partners are developed accordingly to their schedule of construction and hand-over deadline, a very significant factor in Nam Long projects adding value.

Furthermore, the partnership has helped Nam Long successfully complete previous projects as well as continue constructing a range of other large-scale ventures such as Mizuki Park (26 hectares), Akari City (8.5ha), and Waterpoint (165ha). Besides, Nam Long has been able to acquire over 200ha of land to develop incoming projects in the northern city of Haiphong and the southern province of Dong Nai, as well as many other developments further ahead.

“We hope that the deep knowledge of buyers and the Vietnamese property market from Nam Long, along with our experience, will together be successful in developing high-value projects in the Vietnamese property market,” said a representative from Hankyu Hanshin.

By Quynh Chau

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