This was shared by Chairman Nguyen Ba Sang at the 2025 Annual General Meeting of An Gia Real Estate Investment and Development JSC (HOSE: AGG) held in Ho Chi Minh City on the afternoon of May 16th.
2025 Annual General Meeting of An Gia in Ho Chi Minh City on May 16th – Photo: TM.
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A cautious and safe approach to the market
In response to shareholders’ interest in the company’s land fund development plan amid a perceived revival in the real estate market and optimistic macroeconomic forecasts, Mr. Sang offered a more cautious perspective. He emphasized that the current context is uncertain, and that legal procedures for project development take a minimum of 1.5 to 2 years, during which macroeconomic conditions may change. With approximately 7,000 products in its current land fund and a plan to sell around 2,000-3,000 products annually, the company has a 3-4 year supply of projects. Therefore, An Gia does not need to acquire land at this time, he stressed.
He explained that purchasing projects requires leverage and bank loans, which come with interest payment pressures, and that the macroeconomic and legal landscape is not yet clear. This is why An Gia’s strategy going forward is to approach the market with caution and safety, he said.
The company will prioritize market observation and legal progress, maintaining its current capital in existing projects, including The Gio Riverside, The La Village, and Westgate 2. For new projects, the company will only consider increasing capital if there is clear legal clarity and investment efficiency. Several investors have offered land funds to An Gia, but they remain on the company’s waiting list.
The company must continue to observe, monitor, and update information to ensure that the legal framework is truly favorable and that our plans are on track before deciding whether to purchase new projects. For now, we are focused on our plans and observations, shared Mr. Sang.
Ms. Huynh Thi Kim Anh, Director of the Finance and Investment Division of AGG, noted that some real estate companies use various methods to increase their existing capital and invest in subsidiary companies. In contrast, An Gia only increases capital for actual projects, ensuring that the increased capital is used efficiently and benefits shareholders.
The La Village and Westgate 2 projects are expected to be legally completed by the second half of 2026
The La Village and Westgate 2 projects are part of a government pilot program for commercial housing projects through agreements on the receipt of land use rights, specifically the conversion of non-agricultural land in the same plot for commercial housing. The head of An Gia shared that the project dossiers are still being compiled by the Department of Natural Resources and Environment and are expected to be submitted to the City People’s Council for approval within the next 2-3 months. According to the set roadmap, these two projects could be legally ready for the market by the second half of next year.
Mr. Sang added that An Gia operates as a holding company, with subsidiary and affiliated companies that own projects. The Group’s ownership percentage in these companies is calculated with a roadmap to ensure sustainable profit growth. An Gia has projects with 100%, 50%, or 40% ownership, ensuring sustainable revenue and profit growth in the future.
The Director of Investment and Finance shared that the shareholder structure for The La Village and Westgate 2 projects would not differ from the company’s previously implemented projects.
This year, the company aims for a revenue of 800 billion VND and a net profit of 340 billion VND. Most of this will come from Westgate (Binh Chanh) and The Standard (Binh Duong) from the end of Q2 2024, as there are no remaining products from these two projects. The peak will be in Q3, Ms. Anh informed.
Regarding the 3,000-product The Gio Riverside project, 1,200 customers have registered to purchase products since its launch in April. This translates to an estimated contract value of 3,000 billion VND. Phase 2 will soon kick off with the Gió Đông tower, shared Ms. Anh. The project has 32 distribution agencies and a total of 2,500 sales agents. The first phase was financed by VPBank, and the second phase will be supported by a Big4 bank.
In addition, regarding short-term and long-term receivables from related parties, the investment in the Cooperation Business Contract (BCC) includes an investment in Gia Linh Real Estate Joint Stock Company for the development of The La Village project worth 2,772 billion VND. There is also an investment in Loc Phat Management and Development Joint Stock Company and An Gia Hung Phat Development Joint Stock Company for the development of The Gio Riverside project worth 1,113 billion VND, and an investment in Vinh Nguyen Management and Investment Company Limited for the development of the Westgate 2 project worth 873.5 billion VND. Ms. Anh shared that The La Village and Westgate 2 projects involve agricultural land, and the company will convert the value in these BCCs into inventory after the pilot conversion is applied.
| According to the 2020 Investment Law, a Cooperation Business Contract (BCC) is a contract signed between investors to cooperate in business, profit sharing, and product sharing in accordance with the law without establishing an economic organization. |
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