Lãnh Đạo Kiến Tạo #3| Tạo dựng di sản từ những giá trị tử tế | Nguyễn Xuân Quang - Chủ tịch Nam Long

Key Concepts

• Integrated Urban Development: Creating comprehensive urban areas that include residential, commercial, and social infrastructure.
• Market Demand Analysis: Thorough evaluation of what consumers need and want in real estate.
• Infrastructure Connectivity: Assessing and developing essential services like power, water, roads, and traffic links.
• Affordable Housing: Providing housing options that are within the financial reach of a significant portion of the population.
• Social Housing: Government-supported housing programs for low-income individuals and families.
• City Facility Standard: Minimum essential facilities required for a township to be livable.
• Win-Win Model: Creating partnerships where all parties benefit and grow together.
• Chicken-and-Egg Situation: The dilemma in urban development where residents are needed for service providers to come, but amenities are needed for residents to move in.
• Professionalism: A core value emphasizing people, standards, and systems in business operations.
• Humility: A principle of not overstating capabilities and focusing on genuine delivery, learned from Japanese partners.
• Sustainable Development: Building with long-term environmental, social, and economic considerations.
• Legacy: Creating lasting value, emotions, and memories that contribute to a community's spirit and well-being.

Nam Long's Approach to Integrated Urban Development

This summary details the philosophy and operational strategies of Nam Long Group, a Vietnamese real estate developer, focusing on their approach to integrated urban development and creating sustainable, livable environments. The discussion features Mr. Nguyen Xuan Quang, Chairman of the Board/Founder of Nam Long Group, and Mr. Quoc Khanh, the host of the Business Insights podcast by Vietsuccess.

1. Nam Long's Development Philosophy and Evolution

• Early Stages (1990s): Survival and Craftsmanship: Nam Long began in 1992 with a focus on survival and establishing a professional platform for architects to practice their craft. Their initial mission was to shape Vietnam's architectural landscape.
• Market Needs Identification (1995 onwards): By 1995, Nam Long shifted from being solely a construction contractor to identifying and developing housing programs based on market demand, as announced in the Saigon economic newspaper.
• Affordable Housing Focus (circa 2005-2012): The company introduced affordable housing programs like EHome 1-5, responding to a growing market demand.
• Township Development and International Collaboration (Post-2006 WTO Accession): With Vietnam's economic growth, Nam Long moved into large-scale township projects and began collaborating with Japanese partners on product lines such as Flora and Valora, and integrated townships.
• Core Principle: Delivering Market Demand: Nam Long consistently adheres to understanding and delivering what the market demands, aiming to do so better than competitors.

2. Understanding Market Demand

• Personal and Professional Approaches:
  • Personal Level: Understanding individual needs, which evolve from personal desires (e.g., a nice house) to family-centric needs (e.g., children's education and development).
  • Professional Data Approach: Nam Long employs a dedicated Research & Development (R&D) Department to analyze market conditions, forecast trends, and design products aligned with future demand.
• Global Collaboration: Nam Long collaborates with international real estate consulting firms like CBRE and Savills for market analysis.

3. Infrastructure Connectivity: A Non-Negotiable Standard

• Thorough Evaluation: Before any development, Nam Long's R&D team evaluates market demand and infrastructure connectivity, including power grids, water supply, roads, and traffic links.
• Cost Calculation: The cost of building necessary connectivity is calculated to ensure the final product price remains within market purchasing power.
• "If We Can't Meet the Standards, We Don't Do It": This is a strict criterion. If surrounding infrastructure is inadequate or doesn't meet Nam Long's standards, they will not proceed with the project, even if market demand exists.
• Executing the Plan: While drawing an integrated urban plan is achievable, executing it is the significant challenge.

4. The Complexity of Integrated Township Development

• Hierarchy of Development Complexity:
  1. Easiest: Selling land plots.
  2. More Complex: Building houses on plots, townhouses.
  3. Difficult: Condominiums (calculable costs and returns).
  4. Most Complex: Integrated townships, which involve developing an entire ecosystem (schools, hospitals, stores, sports zones).
• Challenges of Integrated Townships:
  • Massive Capital Requirements: Significantly higher investment compared to other development types.
  • Complex Feasibility Calculations: Involves anticipating how amenities will increase property value, boost sales, and improve market absorption.
  • Need for Specialized Partners: Requires collaboration with experts in areas like mall development, hospital operation, etc.
  • Financial and Strategic Planning: Demands strong financial capability, strategic boldness, and a long-term vision, as short-term returns are not the primary driver.
  • Shortage of Professional Operators: A lack of specialized commercial and service operators in townships is a key issue. Developers like Vingroup have addressed this by creating their own ecosystems (Vinschool, VinMec).
  • Developing a Win-Win Model: Creating attractive partnership models for service providers through shared benefits (construction support, leasing incentives, vouchers).

5. Addressing the "Chicken-and-Egg" Situation in Urban Zones

• The Dilemma: Service providers won't come without residents, but residents won't move in without amenities.
• Nam Long's Solution: City Facility Standard:
  • Phase 1 (Must-Haves): Nam Long invests in essential facilities from the start, such as schools, clinics, convenience stores, and public transport systems. These are considered non-negotiable.
  • Phase 2 (Value-Added): Later development includes shopping malls, business parks, or office buildings.
  • Creating a "Playing Field": Nam Long aims to create a foundation for others to join in later.
• Exceeding Standards: Even these "minimum standards" are often a step above what's available in surrounding neighborhoods.

6. Differentiating Nam Long's Products

• Full Equation Development: Nam Long doesn't just design concepts; they build the complete equation, including urban integration plans and partnerships.
• Joint Ventures with International Partners: Business plans include investment for essential facilities, with partners co-investing.
• Leveraging Partner Expertise: Utilizing specialized companies from Japan for urban management and operations to meet international standards.

7. Factors Influencing Homebuyer Decisions

• Clear Standards: Nam Long products follow defined benchmarks for each home type (apartments, condominiums, compounds).
• City Facility Standard: Residents have access to a complete ecosystem for convenience and enjoyment.
• Delivering Promises: Nam Long emphasizes delivering what is promised, fostering trust.
• Authenticity over Flashiness: Unlike some Asian markets that can be flashy, Nam Long (influenced by Japanese and Australian models) focuses on honest representation of quality, avoiding over-promising.

8. The Soul of a Nam Long Community

• Sense of Living Within Standards: Thoughtful planning and proper construction lead to trust and peace of mind.
• Health and Well-being: Features like sports areas, jogging paths, and cycling lanes promote healthy lifestyles.
• Social and Connected Environment: Townships are designed to encourage interaction, neighborly connections, and community spirit.
• Sense of Belonging: Creating a true community where residents feel connected and at home.

9. Income Segments and Housing Aspirations

• Purchasing Power is Key: People buy based on affordability.
• Consistent Standards: EHome projects maintain clear standards for buildings and basic amenities.
• Township Integration: EHome residents within larger Nam Long townships gain access to the full ecosystem of amenities.

10. Current Challenges in Integrated Township Operation

• Budget: Requiring long-term capital and commitment.
• Operations: Developing sustainable financial models for non-profit-generating facilities, potentially through cross-subsidization.
• Service Fees: Educating residents on the necessity of contributions for operations and maintenance in well-planned townships.
• Partner Engagement: Attracting service providers and amenity operators in the early stages of development due to lower cash flow and investment returns. Creating collaborative models for initial sustainability.
• Tipping Point: The community becomes vibrant and active when approximately 2,000 units are occupied.

11. Attracting Residents to New Townships

• Marketing and Sales Capabilities: Building the ability to attract communities.
• Place Branding: Creating a strong identity for the township.
• Experiential Events: Organizing site tours and events for visitors to experience the township's uniqueness.
• Improving Accessibility: Enhancing transport connections and bus routes.
• Show Villages and Model Homes: Allowing potential buyers to visualize living in the township.

12. Advice for Real Estate Sales Professionals

• Professionalism: Emphasizing people, standards, and systems.
• Strong Marketing and Sales Teams: Building capable teams and adopting modern processes.
• Partnership Model: Creating win-win scenarios with agency partners.
• Mindset: Selling products that genuinely deliver on promises, leading to pride and customer satisfaction.
• Delivering What's Promised: Ensuring the physical product and service experience match design and marketing.
• Realistic Commitments: Avoiding over-promising amenities (e.g., limiting to 4-5 key features for Flora) as major global developers do. Over a hundred amenities are difficult to invest in and operate.

13. Convincing Customers in Vietnam

• Resident Satisfaction: Existing Nam Long residents are generally satisfied.
• Communicating Value: The challenge is helping the wider community understand Nam Long's offerings, including collaborations with Japanese partners and adherence to Japanese quality standards.
• Storytelling and Soul: Communicating the "soul" of the product through experience, allowing people to see, touch, and live it.

14. The Spirit of Humility in Real Estate

• Learning from Japanese Partners: Humility means not overstating capabilities (e.g., promising 70% of what can be delivered).
• Genuine Delivery: Japanese developers, despite centuries of experience, remain humble and focus on actual delivery, which amazes partners.
• Authenticity: Japanese and Australian show houses are honest and reflect actual quality, unlike overly glamorous displays that can disappoint. This aligns with a straightforward, down-to-earth Vietnamese spirit.

15. Trends: ESG, Sustainability, and Smart Cities

• Luxury vs. Necessity: Concepts like ESG and green development are considered luxuries in developing nations but are essential for professional developers with a long-term vision.
• Long-Term Planning: Nam Long studies climate change, green design, and environmental pollution as key criteria.
• Younger Generation's Influence: Younger generations are more aware of issues like climate change and expect technological integration (Wi-Fi, digital systems, smart wayfinding).
• Smart Cities: Investing in smart urban areas is crucial for future relevance.
• Sustainable Investment: While appearing luxurious, sustainable development is a smart investment with long-term economic efficiency.
• Maximizing Nature: Nam Long's design principles focus on reusing resources (water for irrigation) and preserving natural environments.

16. Buyer Decisions: Needs and Emotions

• Focus on Emotion: Buyers seek a home that brings happiness and comfort to their families.
• Creating Emotion: Design should focus on creating smiles and a sense of happiness.

17. Balancing Standards and Individual Preferences

• Multiple Product Lines: Nam Long has specialized subsidiaries for affordable housing, townships, and commercial real estate.
• Actualizing Promises: Demonstrating commitments through practical actions, not just words.
• International Standards: Engaging Japanese companies for township management ensures adherence to international standards.

18. Operational Issues in Integrated Townships

• Management Board Handover: A common and persistent issue involving the handover of facilities and amenities to residents.
• Policy and Regulation Clarity: Inconsistent or unclear policies can contribute to problems.
• Dedicated Teams and Systems: Nam Long has built teams and systems to address these matters.

19. Nam Long's Development Direction and Vision

• Location Strategy: Projects are aligned with the city's master plan, focusing on satellite urban areas and major ring roads (Ring Road 2, 3, 4) and radial routes. Future projects will be located where the government invests in infrastructure.
• Geographic Expansion:
  • Ho Chi Minh City Metropolitan Area: Including Binh Duong, Ba Ria–Vung Tau, and Dong Nai.
  • Mekong Delta: Can Tho (three projects).
  • North: Hai Phong (two projects), exploring Hanoi, Hung Yen, and Bac Ninh.
• Social Housing Qualification: Nam Long is among 18 enterprises qualified to develop social housing, creating opportunities for affordable housing programs.

20. Social Housing vs. Affordable Housing

• Social Housing: Government-supported programs for low-income individuals.
• Affordable Housing: Defined as "low-cost commercial housing," filling the gap between social housing and high-end commercial housing.
• Market Gap: A significant portion of the market (around 60% of housing demand) falls within the affordable housing segment.
• Government Focus: The Ministry of Construction is prioritizing low-cost commercial housing.

21. Reasons for Limited Affordable Commercial Housing Development

• High Land Prices and Legal Procedures: These drive up product costs.
• Developer Preference for High-End: Slow approval processes can lead developers to opt for higher-priced, high-end products.
• Lack of Supply: The current shortage of housing allows prices to be easily pushed up.
• Success Formula Required: Developing affordable housing requires proper planning, appropriate standards, and government support (mechanisms, policies, regulatory frameworks).

22. Outlook for Affordable Commercial Housing

• Government Recognition: The government acknowledges the serious shortage of social and affordable housing.
• Collaboration Needed: Government, industry associations, domestic and foreign developers, and financial institutions must collaborate.
• Capital Availability: Financial institutions like IFC are ready to invest; capital is not the primary issue.
• Missing Elements: Land funds and appropriate policies for affordable commercial housing development are lacking.
• Policy Recommendations:
  • Dedicated government agency for oversight.
  • Learning from international models for effective policies.
  • Incentives: Bonus density, tax incentives.
  • Streamlined legal procedures.
  • Increased land banks to boost supply.
• Supply and Demand: Increasing supply is key to driving prices down.
• Vast Opportunity: Vietnam's affordable housing market is huge, offering significant opportunities for domestic and international investors.

23. Nam Long's Legacy: Creating Living Environments for Generations

• Concept of Home: Creating communities that feel like hometowns, warm, familiar, and lovable.
• Spirit of Happiness: Building cities where people live well and feel happy.
• Intangible Value: Beyond physical structures, creating emotions, memories, and a sense of belonging.
• Community Spirit: Ensuring residents know their neighbors and feel a connection to their living space.

24. Evolution of Business Mindset

• From Survival to Mission: Nam Long's mission has evolved to "Joining hands to create living environments and valuable products for the community."
• Pride in Contribution: Hearing positive feedback from Nam Long residents provides a sense of pride and fulfillment.

25. Nam Long's Future Vision (Vision 2030)

• Realizing Integrated Urban Townships: Fully developing comprehensive urban areas.
• Substantial Affordable Homes: Building a significant number of affordable housing units.
• Professional Execution: Relying on solid data and expertise across all departments.
• Goal: To be recognized for creating livable cities and thriving urban communities in Vietnam.

26. Challenges in Operation and Resident Feedback

• Imperfect Systems: Acknowledging that no system is perfect, including government standards.
• Common Issues: Management board handovers, facility transfers, and policy clarity.
• Continuous Improvement: Nam Long is dedicated to resolving issues and improving for the future.

27. Nam Long's Approach to Communication and Marketing

• Delivering on Promises: Emphasizing that what is promised will be delivered.
• Storytelling: Using narratives to communicate the value and soul of their products.
• Experience is Key: Encouraging potential buyers to experience the townships firsthand.
• Realistic Marketing: Avoiding exaggerated claims about amenities.

28. Collaboration and Future of Vietnamese Cities

• Shared Vision: Nam Long hopes more developers will join in creating integrated urban areas.
• Global Recognition: The aspiration for Vietnam to be recognized for its livable cities and thriving communities.