The main business and assets of Lu's Group are located in Vietnam. More than 95% of the group's revenue comes from Vietnam, and about 75% of its non-current assets are located in Vietnam. The Group is mainly engaged in infrastructure and real estate related business in Vietnam, including cement business, property investment and real estate development business.
History and development
The group began to invest in Vietnam market in 1991. Before investing in Vietnam, the Group was a pioneer in investing in the Chinese market as early as 1979 when China began to open its market to the outside world. The Group formally established a production base in China in 1982 to manufacture televisions and TV components. Benefiting from the rapid economic development of China at that time, the Group also grew rapidly and was listed on the Stock Exchange of Hong Kong in 1987.
In early 1990, it was foreseen that the competition in the Chinese market would become more intense, especially in the electronics industry, and the management knew that the group would diversify its investment in different industries and / or different regions at an appropriate time. After years of study of other Asian countries, management has found that Vietnam is like an untapped gem, with rich resources and great potential, and is very similar in many ways to China's early opening up in the 1980s.
A country located in Asia, with a land area of about 330000 square kilometers, a coastline of more than 1600 kilometers and a population of nearly 100 million, may be reminiscent of Japan. But if it has the youngest population in Asia and an average national income of only $1130 in terms of population (in 2010), it is Vietnam.
Vietnam is a very rich country with real resources. It is rich in natural resources, including oil, coal and various minerals, large potential for hydropower, abundant agricultural products (rice and coffee are one of the top three exporters in the world) and rich seafood resources.
Having a population of more than 87 million can not only become a huge market for all kinds of goods, but also provide an adequate labour force. In fact, Vietnam's labor costs are one of the cheapest in Asia. However, this does not mean that their quality is poor, and Vietnamese workers are generally rated as smart, hardworking, skilled and relatively well educated (according to official statistics, the country's literate population exceeds 90%). Perhaps because of the war and postwar baby boomers, Vietnam has the youngest population in Asia, with about 70% of the population aged between 15 and 64, while the median population is only 28.
Socialist Republic of Vietnam-as can be seen from the name of its country, its political system and government structure are very similar to those of China. Over the past 20 years or so, since the beginning of reform and opening up in 1986 (known as Doi Moi), it has always been politically stable, which is particularly obvious compared with other Southeast Asian countries.
Although Vietnam's economy has experienced a number of ups and downs in the past 20 years or so, it is believed that its formal accession to the WTO in January 2007 will serve as a catalyst to accelerate its economic growth and unleash its great potential. With reference to the rapid economic development of China after its accession to the WTO, there seems to be no reason why Vietnam's economic development will turn back in the future.
Why the infrastructure and property-related business in Vietnam?
In developing countries such as Vietnam, management believes that when the economy begins to develop, the first wave of economic growth should be related to infrastructure. Therefore, investment in infrastructure and property-related businesses should be in a good position to benefit from economic development.
Strategies and objectives
Supported by stable income and cash inflows from the property investment business and cement business, the Group's development objective is to seize the opportunity to invest in the real estate development business in Ho Chi Minh City. The real estate development business strategy is to build medium to high-end residential apartments to meet the rising demand of the local middle class, whose number is also growing rapidly with economic development.
CEO： Qiang Zheng
Market： Hong Kong motherboard