Developing the real estate business market of FLC Group Joint Stock Company

Marketing will be responsible for collecting market needs, introducing FLC product information to potential customers through events, advertising, writing PR articles in newspapers, posting on websites, etc. The ultimate goal is to boost sales, increase profits and affirm the Group's brand. For each project implemented by FLC, Marketing work needs to be carried out right from the beginning of project construction and updated according to each progress so that customers can grasp the information and make reasonable investment decisions. Especially in the current digital age, the development and popularity of social networks is increasingly widespread, the requirement for FLC is to have a flexible Marketing strategy, anticipate market trends, diversify products and transaction forms, increase investment in developing websites to introduce products, sales policies, product prices, update project progress, etc.

Promoting products on distribution channels is also a necessary solution to develop FLC's market. Because the distribution network is the bridge between investors and customers, expanding and improving the quality of distribution channels, effectively managing the supply chain will help the company achieve its goals in the market. For FLC with a diverse business market, the strategy is to apply widespread distribution and unlimited distribution intermediaries, building a distribution channel according to modern trends.

In addition, it is necessary to promote cooperation with distribution agents across the country, even internationally, to expand the real estate distribution market. Agents will be intermediaries to broker and market FLC real estate to customers, contributing to improving business performance.

3.2.3. Financial solutions

The special feature of real estate business in general and FLC Group in particular is the large investment capital. The implementation of a series of real estate projects with large scale, prime location, high-class, modern infrastructure, full facilities, etc. will require FLC to have a solid financial foundation, flexible cash flow and effective use of borrowed capital. The financial solutions offered to FLC are as follows:

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+ Complete the identification of financial indicators such as: Useful costs and useless costs; Variable costs, fixed costs and mixed costs; Actual costs and potential costs; Actual revenue and potential revenue; Actual profit and potential profit,...

+ Improve capital efficiency, strictly manage revenues and expenditures, and well control debts and financial interest of the Group.

+ Sales contracts must be carried out on time, customer payment progress must be monitored to avoid slowing down cash flow, etc.

+ Proactively build information to guide real estate business activities

3.2.4. Solutions on human resource development

Resources play an important role in FLC, the company needs to know how to exploit human resources reasonably to promote development capabilities, take advantage of the company's products and create a premise to enhance brand value. That is also the core issue to create success for the Group's brand development in the future. The solution is that FLC Group needs to build a human resource development strategy based on the business development strategy, creating a basis to correctly identify human resource needs, thereby developing a training and human resource development strategy to meet the strategic needs of the company. Specifically

+ Human resource training and development strategy needs to be placed within the overall human resource strategy of the company: Attracting, engaging, motivating, evaluating, training and developing.

+ Human resource training and development strategy needs to shift focus from training to continuous learning.

+ In addition to technical skills, it is necessary to focus on developing the capacities of modern workers: creative problem solving, communication, negotiation, conflict management, teamwork, continuous learning, adaptation,...

+ Innovate management activities, create a favorable environment to apply what has been learned to work.

3.2.5. Price and product solutions

The real estate market is a highly competitive market, and one of the factors that creates that competitiveness is the price of real estate products. Compared to other real estate companies in the market, FLC's selling price is high because the product line that the company is aiming for is villas, luxury shophouses, luxury real estate. Therefore, to attract customers and develop products in the market, FLC Group should have cost-minimizing measures such as good control of land prices, cooperation with contractors to reduce construction costs, optimize material costs; exploit cheap but quality domestic supply sources, ... thereby bringing to the market more reasonable prices. In addition, it is necessary to adjust sales policies flexibly, suitable to the socio-economic situation to attract customers in the market such as: Ngau month policy, loan support policy

– installment payment, free public service policy,...

However, along with minimizing product costs, the top priority for FLC must still be the quality of real estate products because these are long-term products, of great value and are the decisive factor in market development as well as enhancing the FLC brand. The solution is that the Group needs to constantly improve product quality, update designs according to current trends but not fade the mark of FLC; real estate projects must constantly invest in scale, infrastructure, concept, direction, ... along with internal facilities such as: kindergartens, playgrounds, parks, swimming pools, green landscapes, spas ... and external facilities such as transportation, hospitals, urban areas, ...

3.2.6. Technology solutions

Today's 4.0 era has changed the appearance and operation methods of many businesses in all fields. In particular, real estate is a field that is greatly affected and forced to change to adapt to technological trends. Reality proves that using technology is a new prominent trend in the real estate market, in which high-tech products are the tools that businesses make the most of to support customer search, real estate search, real estate business management, ... supporting convenience and speed in business transactions.

To develop the market quickly, conveniently and flexibly in the current period of constant innovation, FLC Group Corporation needs to promote the application of information technology, build infrastructure for communication networks with the 5G generation; Enhance security, safety and network security for each real estate transaction. In particular, the Group needs to refer to the experience of advanced countries in building infrastructure systems, researching and developing effective methods of applying technology to business management, finding customers, ... to promote increased sales.

3.2.7. Flexible adaptation solutions to new situations

The Covid-19 wave in the past two years has caused many obstacles to FLC Group's business activities, many projects have been affected, progress is not guaranteed, causing a decrease in revenue, profit, etc. of the company. Given the complicated developments of the epidemic, the solution given to FLC Group Joint Stock Company needs to grasp new trends and flexibly change the economy.

- society and adaptation to ensure stable business operations, while aiming for sustainable development. Maintaining and strengthening the quality of human resources is one of the top priorities, decisive for the recovery process in the post-pandemic period. Therefore, FLC needs to strengthen the implementation of many solutions to balance revenue and expenditure, tighten costs; expand commercial revenue sources to ensure salary payment sources for

workers; issue a salary fund policy instead of cutting... In particular, it is necessary to enhance the role of solidarity to overcome the crisis as well as apply technology and digital transformation to actively support the Group in the current new trend.

3.3. Recommendations to develop the real estate business market of FLC Group Corporation

3.3.1. Recommendations to the State and Government

- The business environment needs to be improved drastically and thoroughly:

The private economy is generating about 42% of GDP, 30% of the State budget, and accounting for 85% of the country's workforce. The Government has set a target that by 2030, the private economy's contribution will reach 60% of GDP. However, for private enterprises to truly break through and become an important driving force of the economy, the business environment needs to be drastically and thoroughly improved. Not only must the number of procedures be reduced, but the time required to implement the procedures must also be reduced. In fact, the coordination and processing process between state agencies is still long and complicated, and administrative procedures are cumbersome and difficult to predict. At the same time, the predictability of Vietnam's legal policies is still low, making it difficult for businesses to respond promptly, leading to stagnant production and business activities. This barrier is seriously affecting the Government's policy of reform and cutting administrative procedures, hindering the development of enterprises. Therefore, the State needs to speed up decision-making through decentralization of authority and clarifying the responsibilities of competent agencies, and substantially reducing business conditions, so that private enterprises can truly break through and become an important driving force of the economy.

- It is necessary to issue "policy supports" to develop key economic sectors. The real estate business is currently one of the key sectors with great influence.

have a great impact on the economy, the Government needs to have specific solutions to increase support for businesses with large and long-term investment strategies in this field. It is necessary to have incentives on promotion strategies, land access policies as well as access to loan capital to invest in urban infrastructure development projects and tourism infrastructure of real estate businesses. In addition, the State and the Government also need to have flexible policies, creating conditions for the private sector to invest in infrastructure and key projects, contributing to the development of the country.

- Have specific and practical solutions to help and facilitate businesses to overcome difficulties caused by the impact of the Covid-19 epidemic.

The impact of the pandemic on real estate trading floors is huge, especially difficulties in taxes, loan interest rates, plus difficulties in renting premises for production.

business. The State and the Government need to have measures to adjust macro policies to promptly support businesses investing and trading in real estate services such as: postponing and extending the deadline for paying taxes and social insurance; having policies for banks to reduce debt repayment progress, adjusting interest rates appropriately; stimulating investment activities for the whole society,... In particular, the State's policies need to be practical, reasonable, issued quickly and flexibly for socio-economic changes to create an effective business environment, reviving the private economy that has been affected by the Covid-19 epidemic.

3.3.2. Recommendations for ministries and branches

- Stabilize the real estate market

The phenomenon of increasing land prices is becoming a worrying issue, breaking all the rules of the real estate market, leading to an increase in bad debt and disrupting the economic life of the whole region and even the country's economy. The continued increase in land prices makes it impossible for people with real needs to buy land for housing, leading to the risk of a real estate market collapse. In order to stably manage the real estate market, the Ministry of Construction needs to actively research, develop and submit to the Government many mechanisms and policies to reduce the imbalance in the structure of real estate market products, increase supply, and meet the real needs of the market. In addition, the Ministry of Construction needs to direct localities to strengthen supervision of the real estate market, promptly detect and strictly handle acts and subjects that take advantage of information to manipulate prices, push up land prices for illegal profits.

- Strengthening State management of ministries, branches and localities

The Ministry of Construction continues to study, review and amend the Housing Law and the Real Estate Business Law; Study, submit for promulgation and effectively implement the national housing development strategy to 2030 and vision to 2040, stabilizing supply and demand in the real estate market. The Ministry of Planning and Investment continues to review obstacles and perfect investment laws, especially foreign investment. The Ministry of Natural Resources and Environment studies and perfects laws on land, land use management, etc., to prevent illegal transfers and misuse. The Ministry of Finance closely monitors developments in the real estate corporate bond issuance market so that the real estate market always develops stably and healthily, contributing to the overall stability of the economy... Localities are responsible for promoting the implementation of policies and legal documents on investment and construction; Publicly announce and organize the implementation of interconnection, shorten the time for reviewing and resolving administrative procedures in issuing new, adjusting, checking and reviewing real estate business projects...

REFERENCES

1. Tran The Dung (2008), Economic analysis of commercial enterprises , University of Commerce Publishing House, Hanoi Statistical Publishing House.

2. Ha Van Su (2015), General Trade Economics Textbook , Hanoi Statistical Publishing House.

3. Do Minh Son (2018), “ Developing the product consumption market of Midea Consumer Electric Vietnam Co., Ltd ”, Master's thesis in Economics, University of Commerce.

4. Phung Ngoc Dung (2019), "Export market development of Minh Anh Garment Limited Company" , Master's thesis in economics, University of Commerce.

5. Nguyen Ngoc Lan (2020), "Developing domestic market for products of Long Son Joint Stock Company, Hanoi branch" , Master's thesis in economics, University of Commerce.

6. Vu Tien Dung (2018), "Developing the consumption market for LED lighting products of Rang Dong Light Bulb and Thermos Joint Stock Company in Hanoi city market " Master's thesis, University of Commerce

7. Mai Trong Thieng (2017), "Development of Paint Market of Hai Phong Paint Joint Stock Company" , Master's thesis, Hai Phong Private University

8. Financial reports of FLC Group Joint Stock Company for the years 2016, 2017, 2018, 2019, 2020

9. Business performance report of FLC Group Joint Stock Company in 2016, 2017, 2018, 2019, 2020

10. Reference links: https://www.flc.vn/en/ https://batdongsan.com.vn/ https://vietnamnet.vn/ https://cafef.vn/tap-doan-flc.html https://nctu.edu.vn https://reatimes.vn

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