Making home ownership accessible again: Nam Long ADC chairman

Following the success of delivering over 10,000 affordable homes (EHome) and social housing units (EHomeS) in southern Vietnam, Nam Long ADC – a member of Nam Long Group – is strategically expanding this pioneering model to the northern market.

In a talk with The Investor, Steven Chu, chairman of Nam Long ADC, underscored that this strategic move aligns with the company's social responsibility and Nam Long Group's overarching vision "Together, we create living environments and valuable products for communities".

Nam Long ADC has made its mark in the affordable housing segment. What motivates the company to stay committed to this path instead of pursuing more profitable markets?

Established in 2007, Nam Long ADC is recognized as Vietnam’s pioneering real estate firm dedicated to developing affordable housing. Over two past decades, we have handed over more than 10,000 EHome and EHomeS units to the southern Vietnam market.

In 2024, Nam Long ADC remains one of the five strategic development priorities, aiming to realize the Nam Long Group's vision "Together, we create living environments and valuable products for communities".

Driven by the pressing concern that current housing prices are disproportionately high relative to the incomes of many young families, we identified this as a sustainable business model. This approach aligns with our group's social responsibility objectives, offering homeownership opportunities that cater to the genuine housing needs of the broader population, while also contributing to national social welfare.

Previously, Nam Long Group strongly responded to the government's call to implement the "Investment and construction of at least 1 million social housing apartments for low-income individuals and industrial park workers in the 2021-2030 period" initiative, approved by the Prime Minister in early 2023. At a conference with the Prime Minister, Nguyen Xuan Quang, chairman of Nam Long Group, announced plans to contribute 60,000 EHome and EHomeS units by 2030.

With ambitions to expand its housing portfolio six-fold in the coming years, what success criteria does Nam Long ADC set for this journey?

Nam Long ADC not only has profound experience in the affordable housing sector but also inherits nearly 35 years of expertise from our parent company, Nam Long Group. We possess a strategic land bank, a critical determinant for the appeal of affordable housing projects to prospective buyers. This is complemented by our proven project development capabilities, a highly skilled professional team, and substantial financial capacity.

By aligning our efforts with national housing priorities, we are confident of receiving continued government support. New mechanisms and regulations that streamline administrative procedures and reduce investment costs are helping create a more favorable environment for developers in this sector.

How does Nam Long ADC balance maintaining reasonable selling prices for customers while ensuring business efficiency?

In real estate, the viability and sustainability of projects hinge on a synergistic combination of astute business strategy, prevailing market conditions, and supportive government policies. The price level is also determined based on these three factors. Specifically, selling prices are intrinsically linked to market supply-demand dynamics, the efficiency of the authorities' planning approval processes, and the developer's rigorous cost-control measures.

Nam Long ADC has undertaken extensive research, drawing lessons from affordable housing development in comparable ASEAN markets. For instance, Thailand absorbs nearly 90,000 units annually, with the best-selling products priced below $90,000. The Philippines sees 60,000 units sold per year, primarily under $73,000. These insights help us tailor our approach to Vietnam’s context.

Our EHome and EHomeS are developed based on the 3E (Economy, Efficiency, Ecology) and 3S (Saving, Smart, Social) criteria. At the execution level, we focus on standardizing design, optimizing cost, and a streamlined development supply chain. These factors have been critical to our success in the segment, creating quality products and the most living value for every amount our customers spend.

From a corporate perspective, while the profit margins in affordable housing are leaner compared to the luxury segment, we achieve commendable overall investment efficiency due to lower capital outlay and swifter capital turnover.

Regarding the plan to expand to the North, how will Nam Long ADC conquer a new market with many differences in housing needs?

Fulfilling our commitment to the Government, we are expanding the segment to the northern region. We are on track to launch our inaugural affordable housing project in Hai Phong city in the third quarter of 2025 and are concurrently in negotiations to develop further projects in other key northern cities.

As a long-standing real estate developer, we understand that every market has its own cultural attributes and housing demands, necessitating meticulous research and nuanced understanding. During the implementation process, we have collaborated with a network of northern Vietnam-based consulting firms, contractors, and suppliers. Concurrently, we have established offices in Hanoi and Hai Phong, recruiting local talent to participate in this expansion journey.

Leveraging our accumulated practical experience, we are progressively refining our approach to more effectively meet the expectations of families in the North. Products are adjusted from house orientation to avoid summer sun and stay warm in winter, construction materials that adapt well to the coastal city climate of Hai Phong, and community utilities suitable for the spiritual life of Northerners.

Why did Nam Long ADC choose this time to bring EHome to the North when real estate prices in this region are fluctuating and even showing signs of cooling down compared to last year?

We believe that the demand for affordable housing persists, irrespective of market fluctuations. Reflecting on challenging market cycles, such as the 2011-2013 downturn and the more recent 'hibernation' period of 2022-2024, our EHome apartments consistently demonstrated rapid absorption rates, with many projects achieving sell-out status within a month of launch.

Currently, the demand for affordable housing far exceeds supply, leading to a serious shortage in the market. In 2024, the Vietnam Association of Realtors (VARS) reported that while the nation saw 65,000 new property launches – a threefold increase year-on-year – approximately 70% of this new supply catered to the high-end segment, with affordable housing was almost "absent."

This is also the motivation for Nam Long ADC to quickly complete the foundation construction for the EHome Hai Phong project, finalize infrastructure conditions for sales launch, and prepare for subsequent legal handover procedures. Typically, our projects achieve the issuance of ownership certificates to residents in under a year.

What message does Nam Long ADC want to send to customers?

EHome represents housing that is both affordable and attainable, widely recognized for its profound social value. It addresses the fundamental need to “settle down and build a life,” serving the majority of Vietnamese people. Nam Long ADC is proud of our journey of creating a better living environment for more than 10,000 middle-income families in the South, and we are committed to continuing bringing valuable products to the Northern community.

Every EHome unit encapsulates our dedication and experience in designing quality homes and planning friendly living environments such as green landscapes, community parks, health facilities. We believe these homes will be a place for young families to start their journey of stabilizing their lives and building their own homes in their own way.