10 Leading Private Real Estate Businesses Contribute Over 32,000 Billion VND to the State Budget
As one of the 20 primary economic sectors and ranking 11th in terms of scale (according to 2022 data from the General Statistics Office of Vietnam), the real estate industry plays a crucial role in the country’s economy. It facilitates infrastructure development, job creation, and economic growth. Additionally, it boosts the advancement of related sectors such as retail, tourism, education, and manufacturing. Over the last decade, the real estate market has been making significant contributions to the state budget through various revenue streams, including land use taxes, taxes on income from land-use rights transfers, and corporate income taxes.
Currently, while there are multiple lists recognizing businesses for their achievements, none specifically highlights their contribution to the state budget. According to the inaugural Private 100 report published in 2024 by Cafe F, which ranks the top 100 private enterprises with the highest state budget contributions for the 2023 fiscal year, the top 10 real estate companies contributed more than 32,000 billion VND to the state budget, and 8 out of these 10 companies contributed over 1,000 billion VND each. Prominent brands featured on this list include Vinhomes, Khang Dien, Idico, Novaland, Vinaconex, and Van Phu Invest, among others.
Notably, Vinaconex, the Vietnam Construction and Import-Export Corporation, stands out for surpassing the 700 billion VND mark in state budget contributions, with half of this amount derived from land use. What makes Vinaconex unique in this context is its dual role as a reputable investor and construction contractor.
Private 100 Rankings (Source: CafeF)
Vinaconex’s Focus on Developing Premium Real Estate Projects
The list of the top 10 real estate businesses contributing the most to the state budget not only showcases financial prowess but also underscores the profound influence these enterprises hold in shaping and advancing Vietnam’s real estate market.
Vinaconex is predominantly recognized as a leading construction company, having undertaken numerous large-scale infrastructure projects and national key projects such as highways, airports, and seaports. However, even during its tenure as a state-owned enterprise, Vinaconex pioneered the development of sizable real estate ventures. Presently, after nearly six years of operating as a company without state capital, Vinaconex continues to bolster its investments in the real estate sector, particularly focusing on premium projects.
Most recently, Vinaconex left its mark on the real estate market with the launch of two prominent upscale projects: Vinaconex Green Diamond, a complex of offices, commercial spaces, and residences located at 93 Lang Ha, and Vinaconex Diamond Tower, a complex of commercial spaces and rental offices, also known as the Cho Mo Trade Center in Hai Ba Trung District, Hanoi.
Both projects share the common trait of occupying sizable land areas and enjoying prime locations on bustling streets in the capital city. Vinaconex directly invested in and constructed these projects, adhering to the highest quality standards and embracing the concepts of “green living” and “green offices.” The company is committed to delivering genuine value to customers and investors. Vinaconex is strategically positioning itself within the premium real estate segment, where projects are evaluated not only based on price but also on the developer’s reputation, construction quality, unique designs, and accompanying amenities.
Vinaconex Diamond Tower (Cho Mo Trade Center)
In addition to these landmark projects, Vinaconex is actively pursuing several other notable real estate developments. These include a residential area in Km3 and Km4, Hai Yen Ward, Mong Cai City, Quang Ninh Province; a large-scale urban area along Hoa Binh Avenue in Hai Hoa Ward, Mong Cai City; a project to invest in and do business in the technical infrastructure of the Hoa Lac High-Tech Park; and the Thien An New Urban Area, among others. Vinaconex is also expediting the completion of essential infrastructure at the Cat Ba – Amatina project to ensure it is market-ready. Furthermore, the company is actively preparing for new investment projects, such as the Binh Ho Eco-Spiritual Township project in Phu Yen, the Dong Anh Industrial Park in Hanoi, and the Son Tay Industrial Park in Hanoi. Vinaconex has amassed a substantial land fund in various locations, enabling the development of diverse real estate types, including residential, commercial, resort, and industrial properties.
Prior to these endeavors, Vinaconex demonstrated its foresight in the real estate sector by introducing the new urban area model to Vietnam. This journey began with the Trung Hoa – Nhan Chinh Urban Area project, spanning 24 hectares and accommodating 15,000 residents. It became one of the first fully integrated and synchronized urban areas in Hanoi and has been operational since 2008.
Building on this success, Vinaconex, along with its member units, embarked on a series of real estate ventures, including the Bac An Khanh Splendora New Urban Area, the N05 Tran Duy Hung Mixed-Use High-Rise Cluster, the Nguyen Chanh High-Rise Cluster, the 2B Vinata Tower, and the Bohemia Residence project at 97-99 Lang Ha, encompassing a commercial center, apartments, and rental offices.
With its dual strength as both a general contractor and an investor, coupled with solid financial capabilities, Vinaconex holds a distinct advantage over its peers in the industry. Notably, following its restructuring and transition to a model without state capital, the Vinaconex brand in the real estate sector has become even more prominent, marked by substantial investments in upscale, large-scale projects across the country.
For the first six months of 2024, Vinaconex achieved a total revenue and income of over 5,594 billion VND, with an after-tax profit of 645,797 billion VND, approximating 70% of the plan for the whole year approved by the Annual General Meeting of Shareholders.
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