10:19 (GMT +7) - Tuesday 20/08/2019

Op-Eds

Tuan Minh rising ever upwards

Released at: 16:32, 07/03/2019

Tuan Minh rising ever upwards

Ms. Dinh Thi Ngoc Minh, Chairwoman & CEO of the Tuan Minh Investment and Service JSC - Tuan Minh Group

Ms. Dinh Thi Ngoc Minh, Chairwoman & CEO of the Tuan Minh Investment and Service JSC - Tuan Minh Group tells VET about the company's achievements over the past five years and its future expectations.

As a company integrating digital technology, how would you view the development of the digital economy in Vietnam? 

Digital technology, digital transformation, and digital economy are trends found globally and Vietnam is no exception, with Industry 4.0 being applied in every industry. The development of the digital economy in Vietnam, however, remains quite slow compared to elsewhere. 

The country possesses many advantages in developing its digital economy, such as young and abundant human resources, internet users accounting for more than 60 per cent of the population, the increasing attraction of FDI, and a range of opportunities to approach advanced science and technology. At the same time, there are also obstacles, including the quality of human resources, management mechanisms and policies, and telecommunications infrastructure. If we can address these, I believe Vietnam’s digital economy will rapidly catch up with global powers.

 What advantages and disadvantages do you see as a businesswoman in the digital economy?

In the old thinking of Eastern people in general and Vietnamese in particular, women have many responsibilities to fulfill, such as childbirth, family care, and parenting. These have been obstacles that hold women back from realizing their dreams and aspirations. 

In the modern era, however, I believe women can absolutely do everything men can do and even better. Women are more skilled and sophisticated in dealing with jobs and relationships. With determination and effort, I believe that women can balance work and family. The achievements the Tuan Minh Group and I have achieved are the clearest proof of my opinion on this issue. 

 How would you comment on the prospects for Vietnam’s real estate sector in 2019?

2018 witnessed many fluctuations in real estate, such as land fever in certain areas that are to become special economic zones, like Phu Quoc, Van Don and Northern Van Phong. There was also an increase FDI capital in the sector, a boom in co-working spaces, and a decline in apartment supply. The possibility of a real estate “bubble” could again become an obsession of many businesses and investors. 

The real estate market, though, is still in good shape. Having come through the uncertainties, I think the market will grow stably this year, in depth rather than fever. The State’s tightening and supervisory policies on real estate credit will not hinder businesses and will also play a role in filtering the market. This is an opportunity for FDI into real estate to continue to increase. At the same time, liquidity in certain segments became more active towards the end of 2018, and diversity in lending to real estate businesses is a positive sign for the market to flourish. 

 What segments will grow well in 2019? 

Many segments will maintain their growth rate, but I think that apartments, social housing, and housing for low-income earners will grow the most because of high liquidity and huge real demand. 

The most vibrant segment, which is capable of creating a trend in the market, is resorts on the outskirts of Hanoi, such as in Hoa Binh, Hung Yen, and Vinh Phuc provinces. With a special location as Vietnam’s capital and the rich traditions of a thousand-year-old civilization, Hanoi is an attractive destination, as clearly evidenced by impressive tourism growth and a shortage of luxury rooms. What is needed now is projects with unique ideas and new styles that are able to attract tourists and create favorable conditions for surrounding areas to grow. 

 What market segments will the Tuan Minh Group focus on?

Tuan Minh will focus resources this year on distributing resort-owned real estate products at Tuan Minh Paradise Resort. This is a premium resort real estate product, pioneering a new model of combining traditional resorts and resorts for the elderly (oldotels) in Vietnam.

 As a multi-disciplinary company, what percentage of the company’s revenue and profit will come from the real estate sector? What differentiates the company from its competitors? 

Revenue and profit are difficult to predict, as they depend on the company’s development strategy in each specific period. Each period is different and real estate revenue and profit will therefore differ. It currently accounts for 70 per cent of Tuan Minh’s revenue and profit, but in the next few years these figures may change. It’s hard to comment accurately at this point.

As a multi-disciplinary company, the Tuan Minh Group has subsidiaries in many other fields that can complement real estate. For instance, the Ming Media company and the Tuan Minh Eco high-tech agricultural company, which provides safe food that is bought by Tuan Minh Paradise Resort.

 Investing in multiple industries often involves a host risks compared to focusing on one core business field. What do you do to avoid foreseeable risks? 

Given Vietnam’s socio-economic development, I don’t think that investing in only one core business field is necessarily less risky than doing so in multiple industries. Market economies always change, so our businesses need to be appropriately adjusted to meet needs.

 Before deciding to move into a new sector, leaders at Tuan Minh analyze actual demand, benefits, and the company’s internal capabilities. We have developed a process for allocating appropriate financial resources and facilities. At the same time, we also actively cooperate with large businesses to bring our customers the best quality products and services in the shortest possible time. 

For instance, the Tuan Minh Paradise Resort project had agreements with the Ozawa Civil Engineering and Construction Co., Ltd and the Hashinomotogumi Co., Ltd - the leading Japanese construction and design companies. In the rising hi-tech agriculture industry, we are considering cooperating with Israeli companies, which are among the best in the world. 

In the first phase of any investment, Tuan Minh prioritizes branding rather than profit. Capital raised comes from the group’s real estate and marketing communications revenue. Until the brand is big enough, it will be independent from the group.

 What achievements has the company gained after nearly five years in operation?

We received a Vietnam Excellent Brand Award for recording outstanding revenue growth and customer satisfaction. The Tuan Minh Group may not be the largest but it is one of the most prestigious companies, trusted by its partners and customers. With the launch of Tuan Minh Paradise Resort, we are gradually reaching new heights. I think it is a degree of success that few young companies have replicated.

 What are the group’s goals for the next five years?

Our goal is to become the leading real estate developer in Vietnam within the next five years. The Tuan Minh Group brand will become widely known and affirm its position in the market. At the same time, our new brands will create their own positions with stable sources of customers and effective support will be provided to the real estate sector.

In addition to service industries, we will also invest significantly in manufacturing. It may be export and import, agriculture-forestry, energy, or technology. Our desire is to bring to Vietnamese people more products and services that directly meet their needs. We aim to become a leading multi-industry corporation in Vietnam and to secure regional and international stature.

User comment (0)

Send comment