Entrepreneur Hoang Thanh Long, President and CEO of Hoang Phat Construction Investment Joint Stock Company, came to Bac Lieu in 2010 in response to the province’s appeal to invest in local investment projects. So far, the good relationship has created a synergized power that helps the company as well as Bac Lieu province achieve important successes.
Hoang Phat Company is a prestigious investor in Bac Lieu province. Could you tell us something about the company’s investment and development process here?
In response to the call of the Provincial Party Committee and the Provincial People’s Committee of Bac Lieu on construction of an outer residence (Phase 2), after conducting research and having knowledge of project location and local development potential, in 2010, Hoang Phat Company decided to invest in this project and gained the trust of the province.
At first, we confronted financial difficulty because banks reduced property loans. Bac Lieu real estate market was risky; investors lacked interest in the local property market. However, with the support of provincial authorities, the company partly overcame this tough period to quickly develop the Hoang Phat Urban Area with synchronous infrastructure to gain the trust of investors and residents who chose to live here.
As one of much-expected new urban projects, how has Hoang Phat New Urban Area helped develop urban areas for Bac Lieu City and provide residences for local people?
The 66-ha Hoang Phat New Urban Area project is a new type of urban area where infrastructure is invested synchronously and modernly. The project created breakthroughs in urban infrastructure in Bac Lieu City and facilitated an urban space expansion across Bac Lieu province.
With residential land and commercial land accounting for 40%, the urban area has various types of housing such as commercial townhouses, villas, affordable houses for low-income people. The project has solved a great deal of current housing needs for local people.
Many urban projects in the province are now behind schedule, causing urbanization development to trail the original goal. How has the company accelerated project development to soon create a modern and synchronized urban look?
Up to the present time, we have completed 97-98% of infrastructure work and value and expected to complete the rest in the third quarter of 2020. In 2021, the company will start investing in building more service facilities such as swimming pools, gyms and other services to create a new face for a synchronized and modern urban project.
The COVID-19 epidemic has been seriously affecting the economy and greatly hurting the business performance of enterprises. How is the company affected by this? Facing this difficulty and challenge, how has Hoang Phat overcome it to develop sustainably?
The COVID-19 pandemic has greatly affected the world economy and Vietnam’s economy as well. Hoang Phat Company is active in the real estate industry and most of its customers are service investors and property investors. The pandemic has greatly shrunk the economic activity and slashed revenue of its customers. Thus, the real estate market has been considerably lackluster.
However, the company already anticipated this scenario. On the other hand, over the past time, the company has accumulated and built up a strong financial source, plus the support of partners in the project development strategy as well as the trust of previous customers. As a result, the Hoang Phuc has somewhat reduced certain difficulties and stabilized business operations for the coming time.
| Starting a business in Dak Lak, Hoang Phat Company has a good deal of investment and construction projects in Bac Lieu province. In addition to Hoang Phat New Urban Area, the company has invested and constructed many important projects such as Nguyen Van Linh Street (extended), Phong Thanh Road (Gia Rai district), affordable housing projects for the poor in Vinh Trach Dong commune (Bac Lieu City), student dormitories in Bac Lieu City, and martyr cemeteries in Gia Rai and Phuoc Long districts. Quality projects have actively helped boost local socioeconomic development. |
In fact, the company has also been granted tax extension by the government. However, the company will not apply for delayed tax payment because the economy is in difficulty.
As a long-time investor in Bac Lieu, do you have any suggestions for Bac Lieu in socioeconomic development and business climate improvement?
In my opinion, Bac Lieu province needs to focus on completing socioeconomic infrastructure, speeding up the progress of key projects for socioeconomic development and investment attraction; strongly reform investment administrative procedures (e.g. planning, construction and land), improve the business investment environment and enhance the Provincial Competitiveness Index (PCI); actively support investors to handle legal procedures and documents to quickly complete investment preparations to start their projects. At the same time, the province needs to boost communications about the business investment environment, local potential and advantages.
Source: Vietnam Business Forum
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