Vinhomes targets after-tax profit of $1.38 bln in 2024 as market warms up

Vinhomes, a major housing developer under private conglomerate Vingroup, targets to earn an after-tax profit of VND35 trillion ($1.38 billion) this year, up 4.4% year-on-year, given more positive signals from the local real estate market.

The developer aims to make revenue of VND120 trillion ($4.72 billion) in 2024, up 15.87% from a year earlier, its AGM in Hanoi on Wednesday heard.

The revenue will come from sales of the Vinhomes Ocean Park 2 & 3 in Hanoi, the Vinhomes Royal Island in the neighboring city of Hai Phong, and other projects, said chief account Le Tien Cong, adding that such revenues are feasible.

CEO Nguyen Thu Hang elaborated that Vinhomes’ leadership sees the real estate market is recovering, but slower than expected. Housing demand remains positive thanks to rapid urbanization and young demographics. Several independent reports have pointed out that supply will increase in major cities, but with limited quantities.

Vinhomes will continue to develop mega housing projects with better living standards and is working on securing medium- and long-term financing, Hang tipped.

She commented that the passing of the new Land Law, Housing Law, and Real Estate Business Law will help increase transparency in land-related issues and reduce overlapping regulations.

Cong added that the local financial market has also improved, with firms having better capital access. Vinhomes itself has succeeded in issuing corporate bonds.

On the other side, homebuyers can now access softer loans, with interest rates standing at just 6.0-6.55% per annum, he added.

Regarding international bonds, Hoa shared that Vinhomes sees overseas bonds as a good capital mobilization channel. However, it did not issue any USD-denominated bonds in 2023 due to unfavorable market conditions.

“We will closely monitor international markets and seize good opportunities when positive signals appear,” Hoa said.