Viewpoints and Orientation of Real Estate Business Development of Song Hong Construction Joint Stock Company.

According to statistics from the Foreign Investment Agency. As of March 20, 2021, the total newly registered foreign capital, adjusted capital contributions. Purchase of shares by investors reached 10.13 billion USD, an increase of 18.5% compared to 2020. Of this, the registered capital was 7.2 billion USD, an increase of 30.6% over the same period. This has brought many options to Song Hong Construction Joint Stock Company.

According to experts, smart homes are considered a new development trend in the future. Seizing that opportunity, Incomex promotes the development of smart homes, creating a competitive advantage for its housing projects. With applications from artificial intelligence AI, helping to connect devices on the Internet platform. Using smart devices on the phone, helping to connect applications in the house conveniently.

2.3.1.2. Opportunities from the micro environment.

 About human resources:

The Board of Directors and the staff have high management and professional qualifications, and have the ability to think quickly in accordance with the market mechanism; The Board of Directors and the Board of Directors of the Company have the right direction in the investment policy of focusing on investing in medium-sized projects with good locations, so that the projects do not have capital stagnation. The Company has constructed many high-quality projects, built the INCOMEX brand, created the premise for finding jobs, ensuring production development, meeting work requirements and gradually entering stable production activities.

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 About the brand:

The Incomex brand has been known to many customers and Incomex has gradually established a solid position in the real estate business market through the projects the company is investing in and the projects approved by the City People's Committee.

 About finance:

After the Company equitized and increased its charter capital from VND 10 billion to VND 200 billion, the Company invited many strategic partners with prestige and strong brands at home and abroad such as: Vietnam National Oil and Gas Group, Petroleum Finance Joint Stock Corporation, Petroleum Insurance Corporation, Song Hong Corporation, Petroleum Securities Company, Hanshin Group of Korea, Ocean Commercial Joint Stock Bank to contribute capital to implement the Company's projects. Incomex Company has been successful and gained valuable experience in the process of raising capital by offering shares to the public.

 Competitive advantage:

Incomex Company has a competitive advantage in implementing real estate projects. Incomex Company's real estate projects are located in the city center, with convenient transportation, where there is always the highest demand for housing and office space for rent.

 Other factors:

The demand for real estate market, especially offices and commercial centers in the city is increasing. The Company's real estate projects are modernly invested commercial centers and offices for rent, with a harmonious combination of landscape architecture and functionality, bringing satisfaction to customers.

Vietnam's economy is in a period of high and stable growth, people's income is increasing, people's lives are improving, so the demand for housing, office space for rent, entertainment services is also growing strongly, which will be a very favorable premise for Incomex Company to increasingly promote its strengths in business activities. Vietnam's accession to the WTO has opened a new period, a period of opening up for foreign organizations and individuals to invest in Vietnam, thereby leading to strong growth in demand for office space for rent as well as shopping and entertainment services, which is a factor contributing significantly to the development prospects of the Company.

2.3.2. Challenges.

2.3.2.1. Challenges from the macro environment.

Entering 2021, the Covid-19 pandemic is complicated and unpredictable. Therefore, businesses must have a specific strategy. Both developing and effectively preventing the Covid epidemic. Therefore, real estate activities are still slow and there are not many breakthroughs. How to achieve good results without affecting the business's profits.

One of the challenges that many businesses face is the licensing and appraisal process. Long appraisals will affect the progress of the project during construction. Affect the progress of handing over houses from investors to businesses.

Changes in credit when amending the circular. Businesses will have difficulty accessing cheap capital. At this time, requiring companies to rotate capital themselves. Significantly affecting the progress of project construction or relationships with partners.

Taxes and transaction tax policies are still complicated. Making real estate investors not really feel secure. This policy only applies when the market

stable, not issued to fight the epidemic. Therefore, the real estate market has to suffer unwanted impacts.

2.3.2.2. Challenges from the micro environment.

The first problem of the company is that the market research is not done well, leading to the failure to determine a proper business strategy. Therefore, the result is that the company has not determined its long-term goals and directions to create a basis for setting out and implementing production and business plans, product consumption plans and market policies. Product consumption activities are carried out according to short-term plans that are seasonal, highly transactional, unstable and uncertain. Business activities are still unsystematic, sometimes spontaneous, lacking long-term strategies and plans for approaching and conquering customers and developing the market.

In addition, the real estate market's activities in recent times have also revealed weaknesses, unstable and unsustainable development. Some negative aspects in the real estate market include: The phenomenon of the underground real estate market with complicated developments, land and housing speculation, virtual demand stimulation to raise real estate prices... leading to land and housing prices on the market increasing and remaining high. The transparency of the real estate market in all stages of market operations, from investment activities, real estate creation to real estate trading, sale, transfer, and lease activities, still has many limitations, so the phenomenon of underground trading, speculation, and tax evasion is still quite common in many localities, leading to unsustainable and unstable real estate market operations.

The bias and imbalance in investment in the real estate sector in Hanoi in recent years has also affected the effective development of the real estate market. The form of construction and business for housing and services has developed very strongly and diversely, but for other categories such as industry, agriculture, technical infrastructure and social infrastructure are weak while the real needs of low-income people account for a high proportion. The housing market for apartments has not developed commensurate with the needs of society, requiring intervention solutions to promote the real estate market to develop synchronously according to the requirements of society.

Inadequacies in finding investment land and administrative procedures. The nature of real estate business is closely linked to land. Land is a valuable resource of the country, so it is very difficult to obtain land to implement projects. In addition to the scarcity of land resources, administrative procedures related to land allocation and land lease are also very complicated, the legal document system of our country still has many shortcomings and lacks uniformity, leading to difficulties for businesses.

Difficulties in site clearance. Currently, the Company's projects that are being prepared for implementation are all related to site clearance. Site clearance for construction projects is always a complicated issue. It is related to people's livelihood, resettlement, and support to change the lives of the people living there. Therefore, many problems arise during the site clearance process. Many of the Company's projects are behind schedule because site clearance is not carried out on schedule.

The lack of capital has also become a major obstacle for the company. Although Incomex has proactively sourced capital to implement a number of projects, the Company's projects are about to start construction at the same time, and they are all projects of Trade Centers and Offices for lease with large investment capital and long payback periods, so in the short term the Company will be very short of capital to implement.

Although efforts have been made to develop a modern advanced management model and focus on human resource training, due to the Company's large projects and simultaneous investment implementation, the demand for high-quality human resources is scarce and there is a lack of human resources allocated to the projects. Moreover, highly qualified human resources in the business field are scarce and lacking. The steps of establishing business orientation strategies, project establishment, project settlement, operation management, marketing, and customer care are not good, not in-depth, and not systematic. In the process of coordinating functional departments to implement the project, there are still many weaknesses that need to be overcome.

CHAPTER III: Proposals and recommendations for real estate business development of Song Hong Construction Joint Stock Company.

3.1. Viewpoints and orientations for real estate business development of Song Hong Construction Joint Stock Company.

3.1.1. Real estate business development perspective of Song Hong Construction Joint Stock Company.

- The company must be able to accurately and comprehensively evaluate the effectiveness of the objects and resources in the enterprise, ensuring that it meets the information needs of different objects. Information must not only reflect the production and business efficiency of past periods but also predict the future.

- The company must comprehensively evaluate the real estate business efficiency at different levels, from the efficiency of resource use to the profitability and efficiency of investment in the company's stocks, in which the evaluation of the profitability of the factors is the most important.

- Must perfect from analysis criteria, analysis methods to analysis organization must be very scientific, easy to implement to have high feasibility.

- Completing the analysis of real estate business results must meet the specific requirements of a listed company as a public company, so the analysis information must be aimed at the majority of investors, and must highlight information about the efficiency of shareholders' investment capital.

- Real estate business development is based on information that must be publicly disclosed to users based on mandatory reports as prescribed by the State for listed enterprises.

- Real estate business development must be consistent with the country's sustainable development requirements, that is, not polluting the living environment, not destroying and depleting natural resources, and not causing disasters.

- Real estate is closely related to other components of the economy such as the financial market, stock market, foreign exchange market, etc. Therefore, it is necessary to ensure the healthy development of the real estate business market to contribute to promoting growth for the national economy.

3.1.2. Real estate business development orientation of Song Hong Construction Joint Stock Company.

Development orientation is a very important thing in the development strategy of the Company. Orientation is the backbone for the Company's business activities to develop in the future. To have the right orientation, it is necessary to have a business idea and accurate information about the market and business environment.

Based on the real estate market situation in the coming years and the company's potential and strengths, the company's orientation, development goals and production and business plan for the period 2022-2027 are as follows:

- Build and develop Song Hong Construction Joint Stock Company to become a strong, multi-ownership, multi-industry, diversified product real estate business group, taking economic efficiency as the driving force to develop a sustainable, highly competitive group.

- Focus on investing in expanding and developing domestic, regional and international markets for products: Urban areas, hotels, offices, supermarkets, construction, consulting, and infrastructure.

- Investing and cooperating in developing new products: Economic zones, industrial zones, services: Finance - Credit - Banking, insurance, eco-tourism, restaurants and supermarkets...

- Maximize all resources to improve competitiveness, enhance the Company's reputation and brand in the domestic, regional and international markets. Special attention is paid to building office leasing projects in Hanoi and Ho Chi Minh City where the demand for offices is very high while the supply is very limited.

 Main objectives:

- Maintain stable production and business activities of the company and develop steadily.

- Actively participate in the city's housing development program.

- Continuously improve the lives of employees, ensure the legitimate interests of shareholders and fully pay the budget according to regulations.

 Medium and long term development strategy:

- Participate in auctions and bidding for land use rights for housing development projects of the City.

- Continue to expand cooperation and joint ventures with domestic and foreign partners to develop projects nationwide.

- Organize and arrange the Company's apparatus and labor to suit the Company's production and business requirements. Continue to train and develop human resources to meet the Company's development needs.

- Focus on building the INCOMEX brand, promoting the company's products and image.

 The Company's environmental, social and community goals:

The company ensures that environmental, social and community responsibility is an integral part of its management system and culture.

3.2. Solutions to develop real estate business of Song Hong Construction Joint Stock Company.

3.2.1. Solution to complete corporate information system.

To further enhance the professionalism in brokerage activities, the company needs to improve the information system. Currently, the company has its own website, but it only introduces the company in general, real estate advertisements, and projects that have been and are being implemented. To complete the first task, it is necessary to put a list of brokers on the company's website with their practice certificate codes, capabilities, and achievements; there will be a section for customers who have transacted with those brokers to comment and give feedback. That is an objective way to build sympathy and trust for those who visit the website without any intention of boasting about achievements. On the other hand, it is necessary to put information about real estate products on there so that customers can refer to them when they do not have the conditions to come to the company's office. This requires the floor to increase the supply of real estate to make it more abundant; At the same time, to make the website more professional, there needs to be an online communication section between brokers and customers. Online consultation is also an effective way to gain customers' trust.

Due to the nature of the brokerage industry, information security is very important. In the past, the company has not really paid attention to this issue, information security on the internal internet is almost non-existent, if information about customers and suppliers is leaked, it will cause huge losses for the company. Therefore, the company needs to install internal network security software, set passwords for different departments in the company. This ensures security throughout the company's system, on the other hand, ensures information security between departments.

3.2.2. Diversify service types and improve service quality.

Song Hong Construction Joint Stock Company is having a closed process between brokerage services and other services of the company. According to the assessment, it is a perfect closed process, which will create opportunities and encourage customers to use the company's services.

In addition to real estate brokerage, the company also has other services such as: Real estate business, real estate transaction services, real estate consulting services... When customers come to make a transaction, employees need to encourage customers to use a combination of services at the company, thus helping the transaction to be faster and more effective. From the customer's perspective, combining services in the transaction helps them save time, money and effort through the stages. From the company's perspective, combining services makes the transaction carried out in a rhythmic manner.

Smooth, uninterrupted, not only improving the efficiency of real estate brokerage services but also pulling in other services.

3.2.3. Improve the quality of Marketing work.

Marketing is an important step in investment activities. Marketing participates in many steps in project implementation:

- Participate in orienting the project product structure when preparing for investment: Investigate and collect market information including: Market needs and preferences to serve market segmentation.

- Build sales records, sales contracts, customer care, and directly interact with customers to resolve related issues.

- Build the company's brand through sales activities, customer care before, during and after sales.

To improve the efficiency of the company's real estate business project investment, it is necessary to improve the quality of marketing work.

Solutions to improve marketing effectiveness include:

+) Correctly and sufficiently determine the functional position and importance of the company's Marketing so that the Marketing department can operate in accordance with its functional position. Develop the Marketing department into a functional department, increase the department's human resources, and meet work requirements.

+) Develop the company's brand advertising policies, enhance the brand value in product prices. For the company's brand promotion, that task is not only the responsibility of the Marketing department but also the responsibility of each officer and employee in the Company through improving professional skills, reputation at work, and building the company's culture.

+) Develop policies for customer contact and care during and after investment management, creating prestige for the company in the market with the best service policies for customers using the company's services and products.

+) Improve administrative work for customers to best serve customers when they carry out procedures related to the Company's products and services.

+ Price policy and after-sales service: Depending on each specific project, the Company has a specific price policy, but basically it will create the most suitable and attractive price for the project in that area. Basically, the price will not be lower than competitors, but the accompanying services will be diverse and attractive to customers such as: Legal completion procedures, construction consulting and use of interior equipment... and these costs are all paid by the Company.

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