Viglacera builds affordable social housing starting from VND 250 million
According to reports from localities, there have been planned 1,316 land areas with a scale of 8,611 hectares for social housing, increasing 5,252 hectares compared to the 2020 report (3,359 hectares).
From 2021 to 2023, there have been 499 social housing projects implemented nationwide with a scale of 411,250 units. Many localities have actively attracted investment and promoted the construction of social housing (such as Bac Ninh province with 15 projects, 6,000 units; Bac Giang with 5 projects, 12,475 units; Hai Phong with 7 projects, 11,678 units; Binh Duong with 7 projects, 6,557 units; Dong Nai with 8 projects, 9,074 units…).
In response to the social housing program, Viglacera Corporation (VGC) has promptly invested and handed over about 5,000 affordable apartments, mainly in Hanoi. In the program of one million social housing units, currently the Corporation is implementing in 4 localities: Bac Ninh, Quang Ninh, Ha Nam, and Phu Tho, with a scale of over 10,000 social housing units. Up to now, there have been about 3,000 units available for use with prices ranging from 8 – 10 million VND/m2 and apartment prices ranging from 250 million VND to about 600 million VND.
Together with optimizing design solutions along with self-produced building materials, the company strives to offer the best housing prices for the people.
Viglacera’s affordable housing project in Yen Phong – Bac Ninh.
However, in practice, the company is facing difficulties in doing business with these apartments due to existing restrictions on the target audience as well as rental and purchase conditions.
“Therefore, we recommend to the Prime Minister to soon apply the amended Housing Law and issue a Decree on social housing with the aim of expanding the eligible buyers and tenants with simple and feasible conditions so that the poor can have early access to these social housing products.
Viglacera is committed to actively implementing the program of one million social housing units and wishes to participate in more social housing projects in Hanoi in the near future as this is a great demand and expectation from the people,” said Mr. Tran Ngoc Anh, Deputy General Director of Viglacera Corporation, expressing the company’s desire at the conference on removing difficulties and promoting the development of social housing under the chairmanship of Prime Minister Pham Minh Chinh.
How is Viglacera doing business?
Viglacera’s predecessor is the Roofing Tile and Ceramic Production Company, which was established based on the merger of 18 brick factories, outdated technology, and makeshift equipment.
After going through many ups and downs and multiple changes in organizational models, Viglacera has become the leading manufacturer of building materials and real estate in Vietnam, operating nationwide and expanding to the international market.
Regarding business operations, according to the just released consolidated financial statements, the company’s net revenue reached nearly VND 13,194 billion, a decrease of 10% compared to 2022, and VGC’s after-tax profit in 2023 decreased by 39% to VND 1,162 billion.
In 2023, Viglacera became the first company in the Asia-Pacific region to invest in a large porcelain and stone production line. Viglacera is a leading building materials company in Vietnam, ranking among the top 20 in Tile production and top 30 in Sanitary Ware production globally.
Social housing project CT3, CT4 in Kim Chung New Urban Area (Dong Anh, Hanoi) invested by the consortium of Hanoi Investment and Development Corporation and Viglacera Corporation.
Regarding the business plan for 2024, Viglacera set a target of total company revenue of VND 13,468 billion, a 14.5% decrease compared to the 2023 target. The pre-tax profit target for 2024 is VND 1,216 billion, a slight increase compared to the 2023 target of VND 1,210 billion. Viglacera Corporation aims for the mother company’s revenue and pre-tax profit in 2024 to be VND 5,000 billion and VND 1,100 billion, respectively, a decrease of 11.3% and 16% compared to the 2023 target.
In the first two months of 2024, the company’s revenue is estimated to reach 67% of the Q1 2024 plan and 91% compared to the same period; and pre-tax profit is estimated to reach 14% of the annual plan and exceed 128% compared to the same period. In which, export revenue in February 2024 reached USD 2.8 million, accumulated for the first two months of 2023 reached USD 5.5 million, exceeding 18% compared to the same period. It is estimated that in the first two months, Viglacera’s profit before tax is about VND 170 billion.
Viglacera plans to invest in 50,000 social housing units in the period of 2022 – 2030 through projects such as worker housing project at Dong Van IV Industrial Park, social housing project in Kim Chung, worker housing project in Hai Yen – Quang Ninh, or through bidding for new projects in Bac Ninh, Phu Tho, and Hanoi.
