Chairman of Kosy group reveal their strategies at the first time “take small province surrounding by large city”
Mr. Cuong said, Kosy has been an investor for many urban center projects such as: Lao Cai Kosy, Song Cong Kosy, Bac Giang Kosy, with the total investment is nearly 3,000 billion VND. At the present time, Kosy Group has started in Ha Noi with the project located in the north of Nhat Tan Bridge and a total investment is over 4,000 billion.
People are in need of business
While real estate businesses rush to big city to invest. Why an entrepreneur started in Ha Noi but until now – after 10 years of establishment, he decided to choose Ha Noi to invest?
At the first period of establishment, we found that the investment in urban areas in the province was suitable way for Kosy Group, because of their ability was still small. And other important thing is urbanization, modernization, leader of provinces are very interested and make a great opportunities for business to invest in the locality.
In Ha Noi, the number of business is very high, and with a young corporation like Kosy at that time, they were not only have to compete with large domestic firms but also they compete with foreign firms coming to invest in Viet Nam. Therefore, investment happened in the province is a good way for Kosy at that time.
But now in Ha Noi is very different from the past, especially the completion of the project are shortened. Therefore, Kosy made a decision to invest in Ha Noi with the project located in the north of Nhat Tan Bridge. The project consists of 6 high building with 30-35 floors and adjoining 400 villas. Currently, the project is carrying out the ground clearance and completing necessary legal procedures to officially start construction at the end of 2018.
Why did you choose Dong Anh to invest rather than other district in Ha Noi?
As far as I know, the People’s Committee of Ha Noi has decided 33,000 billion in the construction of city on both sides of Nhat Tan – Noi Bai road, and also announced the plan of financial complex 108 high floor which is located on the same axis.
In addition, Dong Anh district will have more works of entertainment Culture Park international 5- star named Kim Quy Park. Thus, with a serious of super projects invested here will help Dong Anh develop strongly in the future. This is also the basis for Kosy to be confident in the development potential and the motivation for successful implementation of the project in Dong Anh.
How do you see the speed of urbanization in this area?
At the current speed of urbanization, about 4% a year, the national average is over 3%, and after 10 years, the city’s expanded area will increase by 30-40%.
As few years ago, when Kosy decided to invest in Lao Cai city, the position of Kosy Lao Cai project was not noticed by many people. At the present, with the rapid and strong urbanization, our Kosy Lao Cai urban area has become the center of the city. Not only in Lao Cai there are many projects that are 5 to 7km away from us, but in the near future, those areas will also develop and be more vibrant.
Similar to Hanoi, the rate of urbanization in Hanoi will increase by 1.5 times every 10 years. 10 years ago Long Bien and My Dinh areas still have vast fields, urban areas are only concentrated in the center of the district or the main roads. But now it’s a very tight house and high-rise apartments. The urban development has spread to neighboring areas such as Long Bien to Hung Yen, or My Dinh spreads to Nam Tu Liem district, Hoai Duc district, Dan Phuong district.
Enterprises are those who know the opportunities and have the vision. Dong Anh is a gateway to the international, land fund here is wide, convenient traffic with many large bridges connected as Thang Long bridge, Nhat Tan bridge … so not only Kosy but large groups at country and from abroad are focus on investing here,
In the future, Dong Anh is a super urban in Hanoi, similar to Thu Thiem of Ho Chi Minh. And the trend of airport development is always a centre. This is also indispensable trend of the entire city from the world. However, when investing in Hanoi we do not forget the provincial market because of the great demand and we serve the people here, not for the group of investment and speculation.
With a large number of housing projects being built in Dong Anh from some reputable investors such as Euro window, BRG, Intracom … Are you worried that you will be compete extremely fierce?
There will be development go together with competition; from that enterprises will calculate how to have the best quality products to consumers.At present, the average area of ??Vietnam is very low, about 14 – 15m2 / person, while the development direction in the coming time is 30 – 40m2 / person to other countries. The population will increase and also increase in the demand for housing. Kosy meets the demand for housing thatis the average segment because this is the segment with the common demand.
We determined that profit is not high, brand is not big but we follow the needs of society. They are the workers and wishing to have a house to live, but with real income, they are the ones who need the most business. To do this we hope to contribute to the stability of society.
The market is still good
At the beginning of 2017, with negative comments from management agencies such as: proposal for second taxation, increase of VAT on transfer of real estate … According to him, these movement have impact on buyers’ psychology in the next time?
I am very in favor of the view that the state should tax it to increase revenue, but before introducing regulatory policies. The agencies need to be considered and evaluated by the non-standard policy, and many industries are affected. . Of which, real estate has 70 – 80 related trades.
However, whether the tax or not, the real estate market is very potential because compared with other countries in the world such as the US, Germany, Australia … Vietnam real estate market is at the dawn of period. So in the long run, many investments are made here and have more potential than other invest places.
Could you give some comments on market developments from the end of 2017?
The real estate market is cyclical, and is in the process of development. I think not only by the end of this year but also in 2018, the real estate market will grow well, growth and if the market has stagnated, then must also after the year 2021-2022.
However, at present, management agencies are very quick in dealing with issues related to the real estate market.Typically, somehot land in the southern provinces took place recently which has been drastically quenched so as not to spread into real estate bubbles.This is the belief that investors can trust on the operating policies of the management agencies, help the market stabilize and sustainable development.
The secret to maintaining stable cash flow.
Could you share the Group’s development direction in the next time?
In recently years, a series of big estate real estate scambling is a great lesson for anyone who runs the business in general and the real estate sector in particular. To business survival and sustainable development, enterprises must have the ability to predict these difficulties and proposed solutions.
As for Kosy, beside direction spearhead is stillthe real estate investment, we started we started to invest in another area to ensure stable cash flow to help corporate sustainable development, which is the field hydropower, wind power and solar energy. These projects will come into operation within the next 3 years. In particular, hydropower plants are likely to bring Kosy a profit of around 200 billion VND per year.
In addition, Kosy Group is interested in investment cooperation with foreign partners such as Germany, Japan, USA.
At present, we are preparing to invest nearly 10 new projects on a larger scale than the current projects and many attractive partnership opportunities for investors at home and abroad.
It is known that in 2017 Kosy has plans to list on the HNX, until now, plans to HNX Kosy prepared to where?
Recently, Kosy has been granted stock code KOS, approved by the stock exchange, is expected in November 2017 , we will list successfully on the stock exchange in Hanoi.
Many people think Kosy will be a hot stock after the official listing. Do you have expectations?
In fact, when listing, any business will have certain expectations. But this “hot” shares is where enterprises hard to have. But the hot “of the stock will be due to a lot of decisive factors, especially the direct evaluation of the market.
In addition to the market evaluation, the business results along with the development strategy of the business is very important, because it clearly shows the potential development of the business to attract investors..
For the Kosy’s group, we always try our best to make feasible development strategies, invest in good projects, and determination to achieve the best business results, strengthen its position to ensure brand of an investor developing prestigious projects, meet the expectation of the shareholders, investors, partners and customers.
With the spirit of “Mind” and “Credit” as the development, Kosy truly expects to become a a diversified business group, flourished in the future.
– Yes, Thanks for your sharing this interesting topic!