Digital transformation of real estate in Vietnam is still slow

In the context of digital transformation and technology application becoming a "race for survival" for Vietnamese enterprises, the real estate sector cannot stand aside. Especially when, in Vietnam, the scale of the real estate industry is forecast to grow 6 times, reaching 1,232 billion USD, the industry's proportion in GDP is also expected to increase and reach 13.6% by 2030 (Source: Vietnam Real Estate Association).

Meanwhile, some assessment reports state that: To promote the real estate market to be liquid effectively, the cost of investors for this activity is on average 15% and can be up to 25% depending on the time, which means that by 2030 it will be about 246.4 billion USD. This is an opportunity to make money for Proptechs who directly participate in applying technology to reduce the cost of supporting this real estate transaction. Therefore, promoting digital transformation for the real estate industry to exploit and increase the value of the industry as well as helping the Government and the State to carry out planning and managing the development of the industry is extremely necessary and urgent.

According to JLL and Tech in Asia, in 2021, Proptech startups in Vietnam raised more than 40 million USD. In the first half of 2022, the market also recorded 2 more startups successfully raising capital. Attracting investment capital of up to tens of millions of USD partly proves the feasibility of the Proptech model in Vietnam. However, the investment level compared to the real development needs of the Vietnamese Proptech model is still very small. A minimum investment capital of 400 million USD (9,400 billion VND - only 0.03% of the market value in 2030) is needed each year to be commensurate with the potential of the market. To really create a big push, a revolution for the real estate industry, Vietnamese Proptech startups still need more resources, more systematic and diverse investment and support.

Users search and look up planning information on Proptech platforms. Photo: THU HA

Product innovation will increase investment appeal

Grasping the needs and potential of the market, in recent years, many Proptech start-up companies have been established in Vietnam. Along with that, many products and solutions have been born to solve the "pain points" of the real estate industry. However, according to the assessment of research units such as PwC Vietnam, there is still a lack of comprehensive solution system providers. In other words, a complete real estate technology ecosystem is needed.

As part of the Vietnamese Proptech ecosystem, Meey Land is known as a pioneer in digital transformation to increase liquidity, maximize the use of real estate, and contribute to affirming Vietnamese intelligence - Vietnamese brand. In addition, Meey Land has launched many technology applications that have been recognized through prestigious awards in the technology field such as Sao Khue, Vietnam Digital Awards, Top Industry 4.0 Vietnam, etc.

Discussing further about the business's operations, Mr. Hoang Mai Chung, Chairman of the Board of Directors of Meey Land Group Joint Stock Company, shared: "Meey Land's staff always adheres to the principle of taking technology products as the focus of business development. Meey Land's Real Estate Technology - Finance ecosystem is very diverse, able to meet the needs of many different customer groups while still ensuring specialization. In addition, Meey Land always updates new technologies to improve and enhance the efficiency of product use."

"All of Meey Land's applications come from the actual needs of the market. According to research data compiled by PwC Vietnam, in 2021, the real estate brokerage segment on technology platforms received the most investment capital in all segments, reaching about 53 million USD. From there, we can see that the level of interest of investors in this segment is very large. Correctly predicting market demand, Meey Land launched Meey CRM - a customer demand management application exclusively for real estate brokers in June 2021 and initially received support from customers. Meey CRM's vision is to become a "real estate trading floor in digital space" service provider for traditional real estate trading floors and investors. A powerful tool to help brokers manage real estate information, connect with customers and other brokers. I think that predicting the market, capturing the time "Opportunity is extremely important in the development strategy of every business and Meey Land has partly done that well," Mr. Hoang Mai Chung emphasized.

Based on research and evaluation by PwC Vietnam and some specialized reference sites, experts from Meey Land Group proposed the Proptech Market Map. In which, products belonging to the Meey Land Ecosystem are making significant contributions to the overall picture of the market. For example, in the Social Network category, there are Meey Share, Meey TV, Meey Project, Meey Chat; in the Listing category, there is meeyland.com; in the Digital Broker category, there are Meey CRM, Meey Ads... Meey Land's desire is not only to increase value for the industry but also to coordinate and invest with other units to build and develop the Proptech market, contributing to the overall digital transformation of the country. The map is under construction and may not be complete, so we really need your participation and comments to continuously update it in the future.

Proptech market map built by Meey Land experts. Photo: THU HA

Now, technology has become a key factor that makes a difference. If a business can master technology, it will have the opportunity to break through and dominate the domestic market as well as attract foreign investment capital. With many support policies and available potential, Proptech will certainly have faster and more stable steps in the future.
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