HCM City (VNA) – The property market is booming in Viet Nam , but few local companies are fully prepared to take advantage of the growth, industry insiders say.
A recent survey by Viet Nam Real Estate (Vietrees) showed that foreign companies are tapping into the market but most domestic firms lack the experience to adequately market their services.
Vietrees blamed the situation on local companies’ lack of capital and professional skills.
Most domestic companies, which dominate the market in number, do not have enough to capital to invest in thorough market research, and have few staff skilled in this area.
In addition, few staff has received professional training, Vietrees said. They also lack foreign language proficiency and have poor analytical and communication skills.
Many of these local companies are forced to hire foreign staff to manage their residential and office buildings.
The UK-based Savills Property Group, for example, manages the Pacific Place , Press Club, Opera View and the Sailing Tower buildings.
The group is also managing 27 other property projects and a large volume of offices and buildings nationwide.
Many office and residential buildings across the country are under the control of foreign-owned CB Richard Ellis Viet Nam (CBRE), including HBT Court , Skyline Tower and Ciputra Mall.
CBRE and Savills Group as well as many other foreign property management and consulting companies in Viet Nam are experienced in sales promotions.
They use their research to outline plans that help clients take advantage of the market.
Domestic companies typically distribute leaflets and cards or advertise in the mass media.
Local companies often sell their properties at a slow pace and lose money because they have to pay interest on bank loans for a longer time.
Dr. Pham Sy Liem, director of the Central Research Institute of Urban Infrastructure, said many property companies entered the market unprepared.
They invest unwisely and sometimes in huge amounts, ultimately losing a great deal of money, Liem said.
With immediate profit the primary goal, these companies neglect the building of their brands and sometimes get involved in too many sectors in the country.
As a result, no one knows who they are, he said.
Vietrees Executive Director Dang Quoc Cuong said that if domestic property companies did not make positive changes they would not be able to gain long-term profits.
Local firms must invest in market research and create a staff of professional workers to ensure a full understanding of market demand and customer tastes, Cuong said.
They must be able to adapt their plans to the market’s fluctuations, and to create a marketing style.-Enditem
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