(Construction Newspaper) – “Billion-dollar handshakes” have changed the business strategy of Kim Oanh Group – a corporation that has strengths in only one segment of the real estate market. Change to survive, change to develop, to make tomorrow better than today, but is the path of cooperation with the “giants” a sustainable path to help …
(Construction Newspaper) – “Billion-dollar handshakes” have changed the business strategy of Kim Oanh Group – a corporation that has strengths in only one segment of the real estate market. Change to survive, change to develop, to make tomorrow better than today, but is the path of cooperation with the “giants” a sustainable path to help Kim Oanh Group “stretch” to become a multidisciplinary corporation with international integration? The reporter of Construction electronic newspaper had a conversation with Mrs. Dang Thi Kim Oanh – Chairman of Kim Oanh Group about the new development orientation and strategic vision of this Group.
Reporter: In recent years, international investors have become partners of Kim Oanh Group, helping the company develop projects worth billions of US dollars. Can you tell us whether international cooperation is a long-term strategy or just a solution to the current situation of the Group?
Mrs. Dang Thi Kim Oanh: Kim Oanh Group has planned international cooperation since the period before 2020. Important names such as Singapore’s Frasers, a property developer, can be the first milestone. And now the most demanding partner in the market, Sumitomo Forestry from Japan. They choose Kim Oanh Group to cooperate through a process of research and research, not “instant noodles” as many people think. We have to prove our capacity and credibility concretely, we have what they need and a strong commitment to the cooperation process. Thus, foreign partners can firmly tighten the relationship with Kim Oanh Group.
Earlier this year, we had good news when 4 partners from Japan “embarked” to cooperate to bring the VND 15,000 billion project to the market. We boldly cooperate with them for a long time, to both accomplish the goals set by the Group, learn from experience and have more financial resources. But we only cooperate in developing what is to our advantage in the spirit of innovation, long-term, not cooperation as a situational solution.
Reporter: You have just affirmed that Kim Oanh Group cooperates internationally with the spirit of innovation. So how has the “spirit of innovation” been expressed internally in the business, as well as business strategy?
Mrs. Dang Thi Kim Oanh: It can be said that Kim Oanh Group’s spirit of innovation is to better develop what is there, not lose yourself. In the past, we operated as a family company, but now we operate with foreign countries, the way we operate will have to change. We want to aim for “standardization” from the way of thinking, to the way of doing, restructuring the apparatus in accordance with the process of cooperation, innovation from small to make big. Kim Oanh Group’s recruited staff will be qualified, experienced, professional and methodical people.
If Kim Oanh Group used to develop the segment of land plots and affordable apartments mainly, now through international cooperation, we will develop busy urban areas, standard from planning, design, landscape and utility system for beneficiaries, Build a civilized, livable community. This means that Kim Oanh Group will raise the scale and quality of the project to be the most synchronous, convenient and modern.
Reporter: In the current difficult economic context, many multidisciplinary companies have had to shrink, they choose to develop the main industry, while Kim Oanh Group chooses the opposite direction. So, is it too risky, ma’am?
Mrs. Dang Thi Kim Oanh: The orientation of becoming an internationally integrated multidisciplinary corporation is not a distant thought or dream, but Kim Oanh Group only does what is necessary, within its potential and the society needs. For example, an urban area needs houses, commercial centers, schools, hospitals, entertainment areas, sports areas … We want to do all this for a more developed and civilized community, instead of simply selling land to people who want to build houses freely.
Currently, besides real estate, Kim Oanh Group has also built a closed ecosystem including education, healthcare, resorts … are located in a synchronous, modern and civilized urban complex. Kim Oanh Group does not “expand”, but focuses on essential issues to operate the urban area smoothly, bringing higher value to the owners. In fact, we are looking to take full advantage of an approved project to create jobs for our employees. Instead of the company doing it alone, sometimes “unconscionable forces”, now we cooperate with some international partners to implement.
Kim Oanh Group currently owns a land bank of more than 500ha and we want to take full advantage of this land bank development. In short, we want to take full advantage of our development journey, so basically there will be no risk, no spread to hug.
Reporter: For the first time, the concept of “Singapore standard social housing” appeared in Vietnam when Kim Oanh Group announced that it will build 25,000 units in Binh Duong and Dong Nai in the coming period. Can you tell us what kind of Singapore standard social housing built by Kim Oanh Group will have?
Mrs. Dang Thi Kim Oanh: We want to bring Singapore’s social housing model with higher design standards and quality to apply in Vietnam. For example, the number of floors, utilities and ventilation … to reduce operating costs, save energy and optimize space use.
In terms of utilities, such as swimming pools, children’s play areas, walkways for the elderly, community areas, schools, green areas … are designed with the building. The smart design makes the repair operation only need to be done outside the apartment, not disturbing the living of people in the house when there is a breakdown. The apartment can be designed to be used for 3 generations of shared housing. Generally a residential area with smart and modern design, brought from the Singapore model to apply in Vietnam. However, that prototype will also be modified at the request of Kim Oanh Group. It is to add more utilities suitable to the conditions and habits of Vietnamese people.
Many people wonder, if they meet the requirements as Kim Oanh Group requires, then the price for an apartment may be very high and difficult for anyone to do. I would like to affirm, here there is no such thing as cheap beautiful houses, not beautiful houses with high prices or cheap houses quickly deteriorating. We build standard, reasonably priced apartments and take them as our own branded product line, paying attention to every detail, carefully from design, selection of materials, equipment, to construction to create beautiful final products, both synchronous. We say do, committed to doing it with the best quality.
Currently, the number of 25,000 social housing units remains the same, but there are some changes in location. For example, Dong Nai has some projects that are adjusting so they have to stop to wait, so we invested in Ba Ria Vung Tau and added a project of 8,000 apartments in Binh Duong. Thus, the number of apartments in Binh Duong will increase compared to Dong Nai at the present time. To achieve the goal of 25,000 apartments, we had to design a separate team, from the legal stage, working with the construction unit, choosing contractors, choosing material suppliers… All are ready, just waiting for the State to “press the button” procedure.
Reporter: The fact that Kim Oanh Group actively participated in the program to build 1 million social housing units launched by the Government, did you follow higher standards, did you have too high expectations for this?
Mrs. Dang Thi Kim Oanh: We do not have high expectations, we only want to do normal jobs but bring practical effects to people and society, in our ability to contribute. The social housing chain, Kim Oanh Group’s branded product line will be products with good quality, comfort, safety and affordable prices. We can reduce our profits, but create jobs for our own workers by using land efficiently. Enterprises “shaking hands” to cooperate with foreign countries also aim to have good products as developed countries have done. Accompanying the Government to implement the social housing program, Kim Oanh Group considers this a way to contribute to society, wholeheartedly dedicated to the goal of development and national construction. Therefore, businesses also hope that the State will remove difficulties, shorten the time for administrative procedures, speed up the disbursement of loan packages so that the program to build 1 million social housing units comes to life.
Reporter: Thank you!
Minh Khang (Performer)
