Kirin Capital and NHA to unlock opportunity in Vietnam’s construction and real estate sector

On July 4, 2023, Kirin Capital’s Investment Department had a meeting and discussion with the leadership of Nam Ha Noi Investment and Development Corporation (NHA) on Vietnam’s current construction and real estate sector.

The meeting was attended by Mr. Nguyen Minh Hoan – Chairman of the BOD of NHA, Mr. Nguyen Dac Long – NHA CEO, Mr. Nguyen Duc Kien – Deputy CEO, Mr. Nguyen Hoang Dao – Deputy CEO, along with several engineers from NHA. On the Kirin Capital side, Mr. Fermen Lee – Investment Director – led a team of senior specialists to work with the Corporation.

During the meeting, Chairman Nguyen Minh Hoan introduced NHA and the company’s business sectors to Kirin Capital representatives. Accordingly, NHA primarily operates in three main areas: real estate business, infrastructure construction, and general construction. With the achievements obtained over time, NHA has gradually established a strong position in the construction and real estate industry in the North. The company has successfully implemented numerous projects, ensuring the highest standards of progress, quality, and efficiency.

With existing resources, the Corporation can execute large-scale projects

During the work session, Kirin Capital had the opportunity to visit the ongoing projects in Ha Nam province, which NHA is carrying out. In addition, Mr. Nguyen Minh Hoan also shared, “In recent years, despite the economic downturn, the company has maintained a stable cash flow and ensured a low debt-to-equity ratio. The company’s goal is to continuously maintain a lower leverage ratio compared to the industry average, establish and develop relationships with shareholders, securities companies, and financial institutions to access diverse sources of capital.”

Kirin Capital appreciated this direction, especially considering long-term interest rates have not yet cooled down. Furthermore, construction projects typically take 3 – 5 years to complete and start selling. Therefore, using financial leverage would impose a significant burden on the company.

To accompany Vietnam’s economy, Kirin Capital has established an investment fund to support promising companies, including those in the construction and real estate sector as NHA. Besides providing capital, Kirin Capital also brings in-depth industry insights and a network of foreign relationships as an investor and business partner. Moreover, Kirin assists companies in achieving rapid growth and expanding their scale.

At the end of the meeting, both parties once again affirmed the potential of the construction and real estate sector in Vietnam, particularly in the field of residential housing and population areas. The two companies committed to actively seeking cooperation and investment opportunities to develop this sector shortly.