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Van Phu – Invest aims to develop the real estate brand for human life in 2025
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The Vietnamese real estate market has been on a recovery trajectory since Q2 2023, thanks to the government’s timely efforts and support, along with various ministries, and local authorities. With a positive trend of month-over-month and quarter-over-quarter improvements, the market witnessed 28,000 new product launches in Q4 2024, double that of Q3 2023 and four times higher than the same period in 2023, according to the Vietnam Real Estate Brokers Association (VARS).
This “warming” trend in the real estate market has helped many investment and development companies overcome challenges and rebound in terms of revenue and profits. Following the industry’s recovery, Van Phu – Invest reported Q4 2024 sales revenue and service provision of VND 749.8 billion, a 457% increase compared to the previous year.
The projects that significantly contributed to Van Phu – Invest’s revenue include The Terra – Bac Giang, generating approximately VND 1,600 billion in revenue. Additionally, the accommodation services segment maintained stable revenue, providing a consistent cash flow for the company’s regular operations.
Explaining these results, the company’s leadership attributed them to four essential laws: the Land Law 2024, Housing Law 2023, Real Estate Business Law 2023, and Credit Institutions Law 2024, which came into force on August 1, 2024. These laws have somewhat accelerated project development and boosted consumer confidence in real estate legality.
“The official legal provisions on housing, land, and real estate business have eliminated the ‘pre-deadline’ psychology among market participants, leading to a ‘temperature rise’ in the market during the final months of the year,” said the leader of Van Phu – Invest.
In addition to ramping up sales in existing projects, efforts to reduce capital costs by over 4,700% have further contributed to the company’s positive profit growth. Consequently, Van Phu – Invest’s pre-tax and after-tax profits for Q4 2024 reached VND 123.5 billion and VND 101.1 billion, respectively, marking increases of 683% and 305% compared to the previous year.
For the cumulative four quarters of 2024, the company reported revenue and profits of VND 1,898 billion and VND 306.8 billion, respectively, achieving ~70% of the revenue target and 87% of the profit target for 2024, as approved by shareholders at the annual general meeting of shareholders. The year 2024 witnessed a very positive recovery in the real estate market, especially in Q4. However, Van Phu- Invest’s results also reflect the challenges faced by real estate businesses, with financial costs and operating expenses eroding a portion of the company’s profits. “Van Phu – Invest proactively seized market opportunities, and we believe in the company’s potential for growth in the coming time. 2024 lays the foundation for our long-term development strategy for the period 2023-2032,” shared the company’s leadership.
Based on the achieved results, Van Phu – Invest’s management expects a more positive performance in 2025, with new supply expected to improve significantly compared to 2024, thanks to stable and low borrowing interest rates, new laws in effect, and government support to increase supply (such as promoting land use fee payments or issuing resolutions to pilot the conversion of non-residential land into commercial projects – PV).
“In the next three years, the company will have a cash flow buffer from ongoing projects such as Vlasta – Thuy Nguyen, Nhon Trach – Dong Nai, Yen Phong – Bac Ninh, Song Khe – Noi Hoang Bac Giang, and land funds in strategic locations in Hanoi and Ho Chi Minh City… for developing new projects,” informed the leader of Van Phu – Invest.
Regarding the scale of assets, the company’s total assets stood at VND 11,114.1 billion at the end of 2024, an 11.07% decrease compared to the beginning of the year. This reduction is attributed to a 20% decline in inventory value, mainly from The Terra – Bac Giang project, as the company nears completion of sales and handover to customers, in line with the project’s schedule and the company’s plans ahead of the 2025 Lunar New Year.
A bright spot in the company’s asset management is the increase in cash holdings, ensuring stability in operations. Specifically, the value of cash and cash equivalents amounted to VND 457.3 billion, a 138.95% increase, thanks to the recovery of certain receivables.
Throughout its operations, Van Phu – Invest has embraced a strategy of sustainable development. With efficient sales and cash inflows from project sales, the company has focused on repaying debts, further reducing short-term borrowing and increasing long-term loans. Consequently, short-term and long-term loan values stood at VND 966.4 billion and VND 3,852.3 billion, respectively, as of the end of 2024, representing decreases of 53.88% and an increase of 9.79% compared to the beginning of the year. The total loan value decreased by 15.11% to VND 4,548.8 billion.
– 12:37 25/01/2025
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