Global Reputation and Good Execution
3
Property Development Model And Payment Schedule Built on Favorable
Regulatory Framework for an Efficient Self-funding Business Model
2-2.5 years
Source:
€2
(1)
(2)
Site Selection
Master Planning
& Design
Condo: 6 months
Condo: 6-10 months
Villa: 12 months
Villa: 2-3 months
Condo: 12-16 months
Villa: 9-10 months
Land Clearance
•
In-principle investment approval
Project master plan
•
Environmental assessment
•
Project design
Government is responsible for
site clearance (2)
Receive land allocation to
begin construction
Foundation
Construction &
Fitting Out
Collection of cash based on the construction progress
(totaling up to 70% of purchase price for Vietnamese
developers; up to 50% for foreign developers)
Pre-Sales: Effective Management of Default Risk
Majority of units are pre-sold immediately after land clearance has
completed and project construction has broken ground
Presale customers required to pay non-refundable deposits of at least 30%
of total purchase price
In 2020, 89% of Vinhomes customers paid 70% or higher of total contract
price to secure discount
Payment of estimated land use
and rental fee (1)
Company Information, CBRE
In order to expedite the land clearance process, Vingroup typically pays estimated land use and rental fees in advance, and the Government uses such advanced payments for land owners resettlement compensations
While the Government is in charge of site clearance, Vingroup takes an active and coordinated role in terms of identifying land right holders, education and, in some cases, purchasing land rights
Handover to
Buyers
21
21
•
95% of purchase price must be paid before being issued the land
use right certificate (LURC)
Full payment will be collected thereafterView entire presentation