Provincial developers massively join realty market in big cities

20/10/2017 11:23

A large number of large enterprises headquartered in provinces are moving to major cities to seek for real estate investment opportunities. More and more projects are being developed by these provincial giants. 



Most of provincial players who are joining the big playground in major cities are quite successful in their hometowns. These businesses are showing their aspirations to bounce off their existing territories to reach the larger market.

Provincial bosses’ impressive projects

In 2014, many headlines were made after the transfer of land plot D25 in Cau Giay new urban area, Hanoi. Licogi 16 (LCG) sold the plot for about VND143 billion due to the lack of capital. The transferee was Thanh Hoa Construction Corporation, represented by Truong Lam - a famous boss in this North Central province. But what surprised the public was the project’s progress. Just built since mid-2016, the project’s progress was admired by many other developers.

This project consists of 2 buildings. The first 25-floor builing is for rental offices, while the second one has 35 floors filled with apartments for sale. The two towers are interconnected by 3 basements for parking and a podium for commercial center. The project is expected to be finished in 2017. 

Provincial developers massively join realty market in big cities
A project is being developed by Thanh Hoa Construction Corporation (Photo: Hieu Cong)

At the end of this July, Nam Tien Lao Cai Corporation - another giant from Lao Cai - also officially introduced a condotel project in Nha Trang with Hanoi customers. Many people were surprised by the fact that a large business which has built hydroelectric power plants and roads from Lao Cai enters the real estate market. Nam Tien Lao Cai’s project is being built on a 7.7 hectare land plot in Nha Trang Bay. Once completed, the project is expected to supply about 700 apartments and 274 hotel rooms.

Reportedly, the corporation also cooperates with a foreign hotel operator to operate the project. Total investment capital of the whole project is estimated at over VND2 trillion. Nam Tien said it is very confident about the capital to implement the project.

Background of the provincial giants

Thanh Hoa Construction Corporation is an equitized state-owned enterprise. This enterprise has been assigned by the Thanh Hoa authority to build 30 schools, 18 hospitals, health centers and other important works. Currently, Thanh Hoa Construction Corporation is owned by some individuals. The majority of shares are held by Truong Lam (born in 1953).  He owns 94.5% of the company’s charter capital (equivalent to VND157.6 billion).

Provincial developers massively join realty market in big cities
A part of Highway 4D, developed by Nam Tien Lao Cai (Photo: Hieu Cong)

Meanwhile, Nam Tien Lao Cai is also known as a giant in the Northwest region. This unit is well-known in the field of capital construction, hydropower, chemicals, roads. Some of the most outstanding projects developed by this enterprise include Tran Hung Dao Boulevard (Lao Cai City), Highway 4D, Highway 4E, etc.

Nam Tien Lao Cai has chartered capital of VND500 billion. Annual revenue is about VND1.2 trillion. The corporation is confidently gearing up with new business sector.

Le Hoang Chau, Chairman of Ho Chi Minh Real Estate Association, said the real estate market has recovered. Businesses have many opportunities to succeed. 

However, Chau also warned that the real estate market is more and more competitive. For gaining success, businesses must have solid capacity and experience to catch opportunities.



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