Dat Xanh Group aims to lead real estate technology race
Dat Xanh Group aims to lead real estate technology race
2023 marks the 20th anniversary of the establishment of Dat Xanh Group. Luong Tri Thin, founder and chairman of the Board of Directors at Dat Xanh Group, spoke with VIR's Thanh Van about his journey in developing the company.
Can you reflect on the journey of transforming Dat Xanh Group into one of the largest real estate groups in the country?
In the past, people often talked about me, saying, “Thin does business like no one else.”
Typically, the domestic market focused on land in 2003. At that time, there was a popular trend for apartments in large cities abroad. When choosing this product to start my career, I went to Singapore to record the civilised and modern image of the apartments there. After promoting, persuading, and consulting in person many times, our first project was successful. Dat Xanh Group quickly became well-known as a real estate consultant and distributor.
Many people wonder why I chose to list the business on the stock exchange at the end of 2009, when the real estate market was in crisis. In my opinion, listing the business in difficult times will help the business measure its health and resistance. I believe that only when the business faces challenges can they improve their ability to overcome such challenges.
After 20 years of development, Dat Xanh Group has become one of the leading groups in Vietnam, operating in many industries, including real estate services, real estate development investment, civil infrastructure construction, financial investment, and financial services.
Dat Xanh Group's success today comes from “clement weather” – the new opportunities that I always find and explore so that my business can have a successful path; as well as “favourable terrain” – the right business strategies depending on the time; and “agreement among key people” – associates that have stood side by side, with partners and customers that have trusted. None of these factors are accidental; they are all the results of the maximum efforts of myself and all the leaders and employees of the group.
After nearly 20 years as CEO, you now hold the position of chairman only. Can you shed some light on this change?
Given that Dat Xanh Group has become strong and stable, since 2020 I have decided to transfer the position of CEO. Therefore, I have only held the position of chairman of the Board of Directors to manage and decide strategic issues of the Group. In addition, I wish to spend time focusing on developing Dat Xanh Group’s real estate technology platform.
The historic handshakebetween Dat Xanh Group chairman Luong Tri Thin and FPT chairman Truong Gia Binh at the ceremonyto announcethe comprehensive digital transformation project
What are the reasons behind your decision to focus on real estate technology?
Real estate is facing internal problems as its scale and speed increase rapidly. Technological development leads to changing consumer trends. The inevitable consequence is that the online technology application business is gradually dominating the traditional model.
Simultaneously, the 13th National Party Congress Resolution also emphasises the government's move towards a circular economy, digital economy and green economy model, which highlights the application of technology and innovation, and promoting the leading role of the business community.
As a top business in the real estate industry in Vietnam, Dat Xanh Group needs to pioneer digital transformation. In fact, 10 years ago, I made many trips to developed countries to consult real estate business models based on technology platforms and promote the transformation process of the group’s system.
How have you directed strategies to enter the technology field?
Dat Xanh Group was one of the real estate businesses applying technology early. In 2012, we operated the ERP model – “paperless office” in administration and business operations.
During the pandemic, the Real Agent online sales platform developed by Dat Xanh Group helped the group’s system maintain business operations. In particular, many projects distributed by us were sold out 95 per cent in just a livestream.
This is a typical example showing that just a technology platform meets all information needs and safe transaction methods, real estate will no longer be a product that customers have to go to the place and experience in person and then “pay money.”
Chairman Luong Tri Thin said that technology would be the foundation to take Dat Xanh global in the future
In 2020, we cooperated with McKinsey - the world's one of leading strategic consultancy groups, to build a 10-year development strategy, with a 30-year vision and orientation towards comprehensive digital transformation.
We were determined to speed up implementation progress, at the end of 2021, Dat Xanh Group purchased copyrighted software from SAP (Systems Applications and Products in Data Processing), which was developed by SAP SE - the largest software company in the world.
Simultaneously, we also cooperated with FPT - Vietnam's top technology corporation, and announced a project on digital transformation in the real estate industry, aiming to comprehensively change the group's operation and business management.
Through Dat Xanh Services - a member company responsible for developing real estate service systems, we have been a pioneer in building a real estate technology ecosystem such as iHouzz and Fina.
What are the unique selling points of your real estate technology ecosystem?
In particular, iHouzz is a proptech application that deploys property management services, rental management, big data, etc., combining online and offline. Accordingly, Point of Sale chains are touchpoints for customers and brokers across the country, with a rich source of products, integrating various service utilities such as home loans, interior design, and legal procedures.
Currently, iHouzz is continuing to cooperate to expand the office system, provide comprehensive real estate services including transfer brokerage, leasing, real estate rental management, and lending, notarization, etc.
Meanwhile, fintech platform FINA operates as a mortgage broker, supporting customers in submitting loan applications and approving loans online.
Through FINA, Dat Xanh Group has currently connected with 30 financial institutions, loans of more than VND10 trillion ($410 million) have been disbursed. With a team of personal financial service consultants, FINA is serving 20,000 customers with a loan approval rate of up to 96 per cent.
The platform's advantages come from creating flexible financial products with low interest rates. In the future, FINA aims to double the number of users, diversify the product portfolio and optimise financial and investment benefits for all actors participating in the real estate ecosystem.
What are the specific goals set for Dat Xanh Group's technology race?
Comprehensive digital transformation will be the foundation for the group and its member companies. Thus, more efforts will be made to research and apply blockchain and AI/Machine learning to business activities with technological content, penetrating new fields such as finance, health, and education.
We hope to start making profits and in the process of increasing scale and market share after three years. In the next five years, 60 per cent of the group's revenue will come from the digital economy. In harmony with our core business activities, Dat Xanh Group will complete its capitalisation target of $10 billion in 2030.
This is also the time when Dat Xanh Group is ready to expand its potential globally, affirming its national position in the international marketplace.
What strengths do you think Dat Xanh Group possesses for its goal of pioneering digital transformation?
People are our number one strength. Dat Xanh Group has a team of brave, talented and enthusiastic leaders, most of them are MBA-trained at top universities in the United Kingdom, the United States, and Australia. For me, people are always the most important factor that determines the success of every business strategy.
As a number one brand in real estate services and real estate finance, Dat Xanh Group owns a system of nearly 100 member companies, 10,000 employees and 15,000 collaborators throughout 63 cities and provinces in Vietnam.
At the same time, Dat Xanh owns a big database of nearly 20 million customers we have served during 20 years of operation. With strong financial potential and a modern technology platform, all employees of the group and are determined and will make the maximum efforts towards leading in the field of real estate technology.
The speed of digital transformation will determine the success or failure of a business. The 4.0 train does not wait for anyone, and those who get on board early will create a competitive advantage.
This is also an outstanding foundation for us to build a top private economic group in Vietnam and reach the world, aiming for our goal of "Efficiency - Longevity - Greatness."
