Phu Dong Group: Build Better

As a vibrant industrial center of the nation, Binh Duong province has attracted a lot of workers, experts and entrepreneurs, most of whom are young and dream of a settlement place. Grasping this high demand, in response to investment attraction policies of Binh Duong province, Phu Dong Group has boldly invested in real estate development projects in the province and quickly gained the trust of people and the government with exemplary residential projects. To find out more information, we have an interview with Mr. Ngo Quang Phuc, General Director of Phu Dong Group. Quoc Hung reports.

Phu Dong Group is an experienced multi-business company and is present in many provinces and cities across the country. Particularly in Binh Duong province, it has two impressive projects, namely Him Lam Phu Dong Residence and Phu Dong Premier Apartment. Why did you choose this province to invest in?

We are an experienced construction company that has executed many large projects across the country. As for real estate, we are investing in three main areas: Ho Chi Minh City, Binh Duong and Dong Nai.

We know that in real estate business, location and market are very important. In my opinion, Binh Duong province has special advantages for property investment. Lying near to Ho Chi Minh City, the province has convenient transport infrastructure links to other provinces and cities in the region. This provides the province with the opportunity to grow rapidly, become one of major industrial centers in Vietnam, and attract a lot of workers, experts and entrepreneurs. Abundant labor force and rapid urbanization speed create high housing demand in the real estate market.

Besides, when working with local authorities in Binh Duong province, we found that they are working very professionally, quickly and enthusiastically to support enterprises. Binh Duong leaders are very friendly and open to enterprises and visionaries. They have worked out socioeconomic development strategy and planning, particularly urbanization development planning, to attract property investors. These are the reasons why we’ve decided to invest in the province.

In the past years, Binh Duong province has offered many incentives to attract investors. However, many projects did not have rapid progress as expected. For your part, how have you managed your projects?

We realize that, in carrying out an investment project, technical infrastructure construction (roads, power grid, water supply and drainage) is not enough. Investors need to care and invest in social infrastructure (school, clinic, markets, green space and other facilities).

Whatever we do, we do it seriously. In any project, we invest in complete and synchronous technical and social infrastructure systems, thus creating beautiful, convenient, livable residential areas, creating added value for residents and investors. Doing this well also reduces pressure on State administration where the project is located. For example, the 5-ha Him Lam Phu Dong Residence with 207 townhouses and 400 apartments is the first project of Phu Dong Group in Binh Duong province. It was carried out very quickly and completely in just three years. In 2020, this residential area was voted a “safe and secure residence in security and fire protection, a model living place.” We and residents are both delighted and proud that our products are highly rated.

As far as we are concerned, Him Lam Phu Dong Residence and Phu Dong Premier Apartment are high-end projects, but you are offering them at a relatively “soft price” as compared to other projects in the region. So, how can the company make a profit?

Firstly, this belongs to the investor's point of view: Is it willing to share benefits with its customers? For Phu Dong Group, normally our products sold to the market are always priced lower than the market rate. For example, if the property is priced VND30 million per square meter, we will sell it at just VND28 million per square meter to give benefits to the buyer as soon as we sign the contract.

Moreover, our products must be beautiful and good, but cheap. We regard customers as stakeholders involved in the project to give them the best price. How to do this depends on the capacity and advantages of the investor.

Fortunately, Phu Dong Group has 40 years of experience in construction and building materials trading. Actively preparing the plan, holding construction technology, and selecting good materials at reasonable prices has helped us create a competitive construction cost, the foundation for selling cheaper. Therefore, customers can also buy at very reasonable prices. But more importantly, the products are still of best quality, with high aesthetic value.

Binh Duong has a very abundant workforce, most of whom are low-income young people who seek affordable property products. What are your solutions?

First, we believe that each project is a new version where its products must be innovative. This illustrates the creativity of the company. Nowadays, fast-changing technology, changing designing mindset and changing customer tastes force us to make better, more beautiful and more valuable products.

This is very important because 80% of our customer base consists of people aged 25-30, meaning that they are first-time home buyers. Characteristically, they do not have very much money and they appear to be quite hesitant to buy a house. Besides, as they are inexperienced and young, offering them good products is also a way to assure them. Young people often tend to be modern, fashionable, keen on technology and new things. Therefore, it is quite difficult to sell affordable houses to them. Products must have serious investment, beautiful design, utility, modern technology and follow current trends.

Our Him Lam Phu Dong Residence is the best testament to this. Opening the sales from VND1.2 billion per unit, dwellers live in a 5.2-ha synchronous, convenient, secure residence with 24/24 CCTV camera, wifi coverage, swimming pools and smart technology. All these things make residents, especially young people, very satisfied and proud of their accommodations.

Currently, the Phu Dong Premier Luxury Apartment Complex is about to be launched. The blueprint Phu Dong Sky Garden is also built with this point of view and is equipped with updated technology and contemporary trends. For us, later products must be better, more modern and more livable than previous ones.

Second, it must be well-designed for their purposes. An apartment is from 65 square meters with two bedrooms, sold at VND1.5-2 billion each, affordable to young families.

Could you please tell us about your investment approach in the coming time?

We see construction and real estate as our core businesses. And as I said, we do not aim to achieve the market share or develop many projects at the same time, but we choose projects that fit our capacity and our business viewpoint. As soon as we start investing, it is necessary for us to focus and carefully create products of best quality. Therefore, we continue to look for suitable land funds to buy back or develop housing projects in three main areas: Ho Chi Minh City, Binh Duong and Dong Nai. Second, in our projects, 80% will meet the real needs of customers and can be afforded by most customers with the selling price of VND2 billion. Third, we want to have the opportunity to join social housing development trends. If we see the opportunity in any locality, especially Binh Duong province, we are willing to take part in and do it well.

In the past years, Binh Duong province has greatly improved the business environment with its PCI Index retaining high for many consecutive years. Do you think the province needs to further improve the business investment environment?

In fact, I am very pleased. The timely guidance and support of legal procedures for the company by local authorities is very important. This not only solves congestion for the company but is also a very responsible incentive for the business community.

Doing business in such an environment is very favorable for Phu Dong Group. However, to a certain extent, the company also encounters obstacles, not from authorities but from unfair competition among competitors. I hope that the business environment in Binh Duong province is getting better and better and the province will attract many good investors who will contribute more to local socioeconomic development. I firmly believe that the province will flourish in the future.n

Thank you very much!

Source: Vietnam Business Forum