Nam Long Group’s growth accelerated by international integration strategy

Since the beginning, the leaders of Nam Long have determined a step-by-step “integration” strategy, taking advantage of all parties’ strengths for mutual development.

This strategy has transformed Nam Long from a family company into a real estate group that is consistently among the 10 leading positions in the market.

These days, the real estate market is undergoing many changes when the Land Law, Housing Law, and Real Estate Business Law take effect from Aug. 1.

Nam Long is regarded as one of the businesses applying strategies to develop real estate sustainably.

In addition to developing products that meet demands, Nam Long’s sustainable development strategy includes a capital usage plan and cooperating with international giants to maintain a reasonable debt-to-equity ratio.

Profits can be shared, and the organization has to meet the high standards of its partners; in exchange, Nam Long has a stable funding source to ensure the project’s progress, provide favorable policies for buyers, and maintain the sustainability and stability of all involved parties.

Nam Long Group, Nishi-Nippon Railroad, Tan Hiep, and TBS Group collaborated to develop the Waterpoint project phase 1 in 2018. Photo courtesy of Nam Long Group

International integration

Nam Long was one of the first few non-state construction enterprises in Vietnam established in the early 1990s. Its initial capital of VND700 million (US$27,960) has grown into assets totaling more than VND28 trillion ($1.1 billion) in three decades.

In addition to positive business growth results, Nam Long has made an impression with successful capital mobilization in the international market, establishing long-term companionship of shareholders and strategic partners, including Goldman Sachs, Mekong Capital, IFC (World Bank), Iberworth (Keppel Land), Hankyu Hanshin Properties, and Nishi-Nippon Railroad.

In 2007 and 2008, many enterprises were still struggling due to their reliance on the three primary capital mobilization channels: owner equity, bank loans, and customer mobilization.

Nam Long, on the other hand, started collaborating with foreign partners in 2008 to be proactive with financial resources and reduce risks associated with interest rates or market changes.

That year, shortly after Nam Viet Company, with 100% capital of U.S. bank Goldman Sachs and ASPL fund of Malaysia’s Ireka Corporation, were invited to become strategic shareholders, Nam Long raised $15 million in long-term capital for the first time.

After that, the VAF Fund, managed by Mekong Capital and IFC under the World Bank, also made the decision to fund the group.

Leading companies in the region, including Keppel Land, a multinational firm based in Singapore, became strategic shareholders of Nam Long in 2015 after purchasing 7.1 million shares through a private offering among major financial institutions and enterprises worldwide.

Nam Long is the first enterprise in Vietnam to acquire funding through an equity investment from Keppel Land Group. With more than 8% stake, Keppel Land remains one of Nam Long’s strategic shareholders after nine years.

In 2015, Nam Long was chosen to accompany two Japanese corporations, Hankyu Hanshin Properties and Nishi-Nippon Railroad, as they entered the Vietnamese market.

Throughout their ten-year partnership, Nam Long and its two partners have developed projects like Flora Anh Dao, Fuji Residence, Kikyo Residence, Mizuki Park, and Akari City, supplying thousands of products to the Ho Chi Minh City real estate market.

Nam Long has had a close relationship for nearly a decade with Japanese partners, developing many key projects. Photo courtesy of Nam Long Group

The cooperation relationship between Nam Long and the two Japanese partners has evolved to a new level with the collaborative implementation of large-scale integrated townships like Waterpoint (phase 1 of 165 ha) and Izumi City (170 ha).

A recent report by FiinRatings, Vietnam’s leading entity in credit rating, rated Nam Long’s prospect as “stable,” with its business capacity at a good level and its financial risk at a medium level.

This entity expressed that the real estate group could maintain a good competitive position compared to other enterprises in the same sector thanks to its flexible capital turnover and circulation.

Selective collaboration with experienced international partners improves not just the financial potential but also the added value of Nam Long’s products.

Mizuki Park, modern township in Ho Chi Minh City, is developed by Nam Long in cooperation with two Japanese partners. Photo courtesy of Nam Long Group

The handshake with foreign partners is also clear evidence of Nam Long’s capacity to meet the strict standards set forth by these giants in management, operations, capacity, and capital structure.

The greatest achievement in Nam Long’s 32 years of development, according to Nguyen Xuan Quang, Chairman of the group, has been building an enterprise that is poised for growth and integration internationally.

He also emphasized that integration was not simply about culture, business model, and business policy but involved the entire organization, from the Board of Directors, management board, and apparatus.

Waterpoint – Riverside Community, an urban area in the southwest of Ho Chi Minh City. Photo courtesy of Nam Long Group

The “internationalization” strategy was recently strengthened when Lucas Ignatius Loh Jen Yuh, who has over 30 years of experience working at top Asian organizations and enterprises, was appointed as Group Chief Executive Officer by Nam Long’s Board of Directors.

Lucas Ignatius Loh Jen Yuh held the positions of professional and high-level management for 20 years at CapitaLand in China, IRAS (Inland Revenue Authority of Singapore), Temasek Holdings (global investment corporations owned by the Government of Singapore), Hopson Real Estate Corporation, and others.