Chief executive officer of BCG Land Joint Stock Company, Mr. Vo Manh Tin, said that 2022 is going to be a busy year. It is expected that BCG Land increases its capital to about VND 4,000 billion to implement numerous projects. In addition, revenue and after-tax profit are expected to reach VND 4,800 billion and VND 1,200 billion respectively.

Trillion profit in the COVID-19 pandemic

Real estate was severely affected by the pandemic in 2021 due to the strict social distancing regulations in the second and third quarters, especially in the south, which caused halt in the construction and selling projects. BCG Land is no exception. However, talking to Vietnam Finance (Tạp chí Đầu tư Tài chính), Mr. Vo Manh Tin said that thanks to the preparation in advance, BCG Land still achieved excellent business performance. At the end of 2021, the company reported a profit of nearly VND 1,000 billion, completing its plan. The corporation made history when its total assets exceeded  VND 13,000 billion at the end of last year.

“It is noteworthy that amid great challenges, BCG Land still implemented projects as had planned, including: Hoian d'Or, Casa Marina Mui Ne, Amor Riverside Villas, King Crown Infinity, Casa Marina Premium... In 2021, BCG Land continued to develop new projects such as: Helios Village Dak Nong, Phoenix Mountain in Binh Dinh, projects in Quang Nam, Quang Ngai, Long An and the Southwest region, etc bringing the total number of projects to more than 20. Last year, the company also sold the King Crown Infinity, which is the complex of commercial, service and luxury apartments, and the Maison de Ville of Hoian d'Or project", Mr. Tin said.

According to him, after social distancing lifted, BCG Land is devoting its resources to speed up the construction. It is expected that Malibu Hoi An will be handed over in the first half of 2022; shophouses of Hoian d'Or shophouse was topped out on December 31, 2021 and is expected to hand over in this July.

At the same time, the company is completing legal processes for potential projects this year. Notably, BCG Land is focusing more on real estate development, particularly residential buildings and urban areas, besides resorts which are its key segment. BCG Land's vision is building large-scale urban areas, high-quality living spaces, fostering diversity in public service, applying modern technology, and creating green living spaces in prime locations in Ho Chi Minh City and other potential areas.

Increasing capital, investing more in real estate
Envisioning 2022, Mr. Vo Manh Tin said that after the pandemic was under control, the economy has been showing positive signs of recovery. Financial support, economic stimulus packages and higher public investment as well as Government efforts to remove legal "bottlenecks" are also considered crucial for the real estate market.
“We believe that 2022 will be a pivotal year, bringing the real estate market to a new chapter. There will be new projects which have been halted during the quarantine period. When the pandemic is fully under control, the resort real estate market will be hot again.

Amid low interest rates coupled with inflation fear will make real estate the best investment, billions are expected to flow in that industry", optimistic but he also emphasized, “Of course, there is still a potential risk of new mutations, therefore businesses need to prepare for that scenario to adapt and create their own competitive advantages.”

With BCG Land, Mr. Tin said that this year, the company sets a target of VND 4,800 billion in revenue and VND 1,200 billion in after-tax profit. This revenue mainly comes from the Malibu Hoi An project and the shophouses of Hoian d'Or. The corporation continues construction to ensure the committed progress.

Talking about the M&A plan, Mr. Tin affirmed that BCG Land will seek and carry out M&A deals to increase its land bank and develop new projects. “M&A is a part of our long-term strategy. BCG Land prioritized projects that have compensated for displaced residents, carried out essential procedures and have strong financial health in Ho Chi Minh City and other areas”.

To develop gigantic projects and M&A to expand land bank, BCG Land plans to increase its capital to VND 4,000 billion. In addition, the company has also sought for business cooperation with domestic and international partners to jointly invest in ongoing projects.

Another significant advantage of BCG Land is that its parent company, Bamboo Capital (HoSE: BCG), has many years of experience in the financial sector. BCG has just established BCG Financial last year, then finished M&A deal with AAA Insurance Joint Stock Company, thus completing the BCG ecosystem with the final puzzle. BCG is expected to provide financial support to its subsidiaries. “With the real estate segment, both BCG and BCG Land have specific financial plans for each project,” emphasized by Mr. Tin.

Regarding the resort real estate segment, this year, Land Law is going to be revised. The National Assembly has included the Land Law amendment into the 2022 Law and Ordinance Development and Amendment Program. The revised Land Law is expected to remove legal bottlenecks for the resort real estate market as well as the real estate market in general, so businesses are looking forward to the revised bill.

With BCG Land, Mr. Vo Manh Tin shared: “We hope that the new regulations on land will remove existing obstacles and overlaps, therefore speed up the process of completing legal procedures and help enterprises easily expand their land bank and make real estate investment and development more convenient. When these challenges are eliminated, businesses will be able to develop more housing projects that are in demand, creating a vibrant market with more options for homebuyers, thereby promote economic and social development”.

Sharing about the future, BCG Land's CEO said that the company's ambition is becoming one of the top five real estate developers in Vietnam, aiming to build outstanding projects and urban areas which are large-scale, modern, classy; to change the landscape of the local urban area. "In the near future, we are aiming to list BCG Land on stock markets soon in order to mobilize more resources for the development", Mr. Tin revealed. 

According to Vietnam Finance