Breakthrough experience from Phat Dat: Development speed not in contradiction with sustainability

With the right strategy and solid governance, a business can achieve both breakthrough speed and sustainability.

By the end of 2020, Phat Dat Real Estate Development Corporation (Stock code: PDR) officially joins the group of enterprises with a market capitalization exceeding USD 1 billion. More than a half year later, up until now, Phat Dat’s market capitalization is approaching the USD-2-billion milestone. Such a remarkable growth rate is rarefied on the Vietnamese stock market.

Owing to that speed, Phat Dat is in the top 5 most profitable businesses for 1H2021 (ranked by Vietnambiz). Besides, both growth and financial indicators stay positive and are speeding up to complete the year’s major goals, typically the profit target of VND 2,335 billion, amidst the extremely harsh socio-economic context.

Astral City Commercial Center & Apartment Project is considered a symbol of Thuan An City in particular
and Binh Duong Province in general.

Currently, Phat Dat has started to accelerate preparations for 2022. According to the announced plan, the next target profit will be VND 3,635 billion, equivalent to a compound annual growth rate of 51% throughout the 5-year plan 2019 – 2023. In the long term, as stated by Phat Dat’s leadership, this business has a plan toward 2025 with continuous breakthrough goals. Specifically, this year’s minimum target for market capitalization is USD 5 billion for the residential real estate segment alone. In addition, Phat Dat also operates in industrial real estate and renewable energy sectors. These fields have started and gradually form a major foothold for Phat Dat to become a professional multi-industry company towards sustainability on a large scale in the long run.

Furthermore, financial indicators demonstrate that Phat Dat has gained amazing growth speed. More significantly, the ability to make such a major breakout is considered sustainable and reliable by observers and investors, not just short-term red-hot growth. For this, Phat Dat manifests itself with the continuous performance from 2017 to the present. From a tough situation, the enterprise made a spectacular bounce at the end of 2016, and since then, has made convincing big leaps every year.

Therefore, investors continue to have faith in Phat Dat for its major goals toward 2025. With what has been announced, Phat Dat shows a solid foundation for the feasibility of those breakthrough goals. Typically, this business has owned a landbank of nearly 500 hectares and is researching to acquire more, up to 9,000 hectares stretching across the most potential markets in Vietnam. In addition, Phat Dat has built a solid reputation and strong financial potential backed up by diverse, abundant revenue streams and advantages in mobilizing local and global capital. Also, Phat Dat is highly appreciated for its market experience, the soundness of its development philosophy, and the firmness in updating its organizational and operational capacity. In particular, the experience gained from overcoming challenges from 2013 to 2016 has enabled Phat Dat high “resistance” to harshness. Hence, this enterprise has gained seasoned internal strengths to make strong breakthroughs right in the “storm” of Covid-19 as it has been.

Business people often doubt a business to achieve both growth rate and sustainability at the same time. However, in the current severe market context, “slow but sure” is no longer a convincing motto. To create breakthroughs and a new status, businesses must be “fast and sure” – or “speedy and sustainable,” as Phat Dat puts it. To achieve that “dual goal,” not all businesses have sufficient capacity.

Phat Dat owns a landbank of nearly 500 hectares (2021 – 2025) and is researching to acquire more, up to 9,000 hectares stretching across
the most potential markets of Vietnam.

Looking back at the way Phat Dat has been growing, there are some typical experiences for a business to achieve the ability to grow “fast and surely.” First of all, an enterprise must have great aspirations and vision. Then, it needs to develop a clear strategy and detailed action plans. During the course of implementation, despite flexible adaptation to certain circumstances, consistency plays a vital role in helping businesses not easily waver, get lost, or get caught up in short-term achievements.

To ensure “speed and sustainability,” the business must also base on sound business philosophy. At Phat Dat, legal compliance and the “win-win” solutions for all stakeholders are the top criteria in implementing all business activities.

Phat Dat’s leadership also gives importance to business efficiency, financial stability, and cash flow abundance. These are the lesson learned from Phat Dat’s “life-threatening experience” during previous difficult periods. Therefore, from 2017 to now, Phat Dat has not changed in aspiration, vision, and development philosophy but in action criteria. In particular, this business only focuses on projects that bring high financial efficiency, quick capital turnover, abundant and stable cash flow, etc.

Heading to 17 years of establishment in mid-September, PDR has now returned to the top position in many rankings for Vietnamese businesses in general and real estate enterprises in particular.