Hoang Quan, a renowned social housing tycoon, has announced that the partnership with Novaland is set to begin with real action and groundbreaking on the project will soon commence. It is expected that 3,000 housing units will be handed over this year. This was revealed by Mr. Truong Anh Tuan, the Chairman of HQC, during the company’s annual meeting where shareholders raised concerns regarding the recent collaboration with Novaland to construct social housing in Ho Chi Minh City and the surrounding provinces.
Mr. Tuan emphasized that this partnership with Novaland is a mutually beneficial relationship aimed at addressing the pressing need for social housing in Vietnam. By leveraging each other’s strengths, both companies plan to deliver 3,000 social housing units in various locations this year. He clarified that this cooperation is not just talk but a concrete plan that will soon be put into action.
One shareholder expressed concerns about Novaland’s focus on high-end real estate in recent years and questioned the rationale behind partnering with HQC when the latter has extensive experience in building social housing. Mr. Tuan explained that there are no competitors in the real estate market but only potential partners. He clarified that Novaland’s larger scale and HQC’s expertise in social housing make them ideal partners to address the growing demand for affordable housing in Vietnam’s rapidly growing real estate market.
Moving forward, Hoang Quan plans to expand its portfolio to include industrial parks and commercial housing for low-income individuals. The company also aims to grow through mergers and acquisitions, with a significant commercial housing project on the horizon. Despite facing challenges in accessing capital, HQC is optimistic about its growth prospects and is targeting a substantial increase in revenue and profits this year.
In conclusion, the partnership with Novaland is a strategic move for Hoang Quan to position itself as a leader in social housing and low-income housing development. By leveraging each other’s strengths and resources, both companies aim to address critical needs for affordable housing in Vietnam’s rapidly growing real estate market while expanding their business horizons beyond just construction projects towards diversification of their portfolio into other areas such as industrial parks and commercial properties for low-income individuals through mergers and acquisitions or expansion strategies like joint ventures or strategic alliances.
