Top 10 real estate businesses paid more than 32,000 billion VND to the budget

Recently, the list of Top 10 private real estate enterprises paying the largest state budget in Vietnam was announced, with the presence of many large enterprises such as Vinhomes, Khang Dien, Idico, Novaland, Vinaconex or Van Phu Invest... Total budget payment in 2023 is more than 32,000 billion VND.

10 private real estate enterprises contribute more than 32,000 billion VND to the budget

As one of the 20 first-level economic sectors and ranked 11th in terms of scale (according to 2022 data from the General Statistics Office), real estate plays an important role in the Vietnamese economy in building infrastructure, creating jobs and generating economic growth. This is also the industry that promotes the development of many related fields such as retail, tourism, education, manufacturing facilities, etc.

Over the past 10 years, the real estate market has been contributing increasingly to the State budget revenue through revenues such as land use tax, income tax from land use rights transfer, and corporate income tax.

Currently, there are many business honor boards but no list reflects the total budget contribution of the business. According to the first Private 100 report published in 2024 - Top 100 private enterprises with the largest budget contributions in fiscal year 2023, the total budget contribution of the Top 10 real estate companies is more than 32,000 billion VND and 8/10 businesses have a contribution of over 1,000 billion VND.

This list features many large, leading enterprises in the market that have built their reputations over the past two decades. Topping the list is Vinhomes Joint Stock Company (stock code VHM), which will pay about VND 18,000 billion to the state budget in 2023. The second largest payer in the real estate industry is Hoang Huy Financial Services Investment Joint Stock Company (stock code TCH). Hoang Huy Finance paid more than VND 5,300 billion. Next is Taseco Real Estate Investment Joint Stock Company (Taseco Land, stock code TAL) with a payment of more than VND 2,000 billion. Big names in the real estate sector such as Van Phu Invest, Novaland, Khang Dien, and Vinaconex are also on this list.

With the budget payment exceeding 700 billion VND, half of which is from land use fees, Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex, stock code VCG) is one of the quite special cases on this list, especially because this enterprise is both an investor and a reputable construction contractor.

Private 100 Ranking (Source: CafeF)

Vinaconex aims to develop high-end real estate projects

The list of Top 10 Real Estate Enterprises with the largest budget contributions not only reflects financial strength but also affirms the profound influence of enterprises in shaping and developing the Vietnamese real estate market.

Vinaconex is often known as a leading enterprise in the construction industry, participating in the construction of many large-scale infrastructure projects, key national projects such as highways, airports, ports, etc. However, even when it was a state-owned enterprise, Vinaconex pioneered the construction and development of many large-scale real estate projects. Currently, after nearly 6 years of operating under the model of an enterprise without state capital, Vinaconex continues to promote its activities in the field of real estate investment, especially the orientation of developing high-end real estate projects.

Most recently, this enterprise has made its mark on the real estate market when launching two outstanding high-end projects: Vinaconex Green Diamond Office - Commercial - Housing Complex (93 Lang Ha) and Vinaconex Diamond Tower Commercial - Office for lease Complex (also known as Cho Mo Commercial Center - Hai Ba Trung, Hanoi).

Having in common a relatively large construction area, located in prime locations on the busiest streets of the capital, these projects are directly invested and built by Vinaconex with the highest quality standards, aiming at the criteria of "green living", "green office", bringing real value to customers and investors. Vinaconex is orienting to develop its brand in the high-end real estate segment. Projects in this segment are not only evaluated based on price but also by the reputation of the investor, construction quality, unique design and accompanying utility services.

Vinaconex Diamond Tower Commercial Complex - Office for lease (Cho Mo Commercial Center)

In addition, Vinaconex is currently accelerating the implementation of a number of typical real estate projects such as the urban residential area project at Km3, Km4 Hai Yen ward, Mong Cai city, Quang Ninh; the extended Hoa Binh Avenue urban area in Hai Hoa ward, Mong Cai city; the Hoa Lac high-tech park technical infrastructure investment and business project; Thien An new urban area; accelerating the completion of infrastructure construction at the Cat Ba - Amatina project to ensure business readiness conditions...

Vinaconex is also actively preparing for investment to implement new investment projects such as: Bien Ho spiritual ecological urban area project, Phu Yen; Dong Anh industrial park project, Hanoi, Son Tay industrial park project, Hanoi... Vinaconex has also accumulated large land funds in many localities to meet the needs of developing diverse types of real estate from housing, urban areas, resorts to industrial infrastructure...

Previously, this enterprise affirmed its vision in the real estate sector when pioneering the introduction of the new urban area model to Vietnam, starting with the Trung Hoa - Nhan Chinh Urban Area Project, with a scale of 24 hectares, providing housing for 15,000 residents and becoming one of the first complete and synchronous urban areas in Hanoi, which has been in operation since 2008.

Following this success, Vinaconex and its member units have implemented a series of real estate projects such as Bac An Khanh Splendora New Urban Area, N05 Tran Duy Hung Mixed-use High-rise Apartment Complex, Nguyen Chanh Apartment Complex, 2B Vinata Tower Apartment Building and Bohemia Residence Commercial Center, Apartment, Office for Lease, 97-99 Lang Ha Project...

With the dual advantage of being both a general contractor and an investor with good financial capacity, Vinaconex has a superior advantage in the market compared to other businesses in the same industry. At the end of the first 6 months of 2024, Vinaconex achieved total revenue and income of over VND 5,594 billion; profit after tax was VND 645,797 billion, reaching approximately 70% of the annual plan approved by the General Meeting of Shareholders.

Source: https://baodautu.vn/top-10-businesses-real-estate-earnings-hon-32000-ty-dong-d223097.html