Once-mighty property company Sudico to enter resort real estate segment

By Anh Tu July 11, 2023 | 11:20 pm PT

Houses are seen at Nam An Khanh Urban Project, developed by Sudico, in Hanoi. Photo by VnExpress/Ngoc Thanh

Sudico, one of Vietnam biggest property developers until 10 years ago, is seeking a revival by developing two resort projects this year.

Song Da Urban & Industrial Zone Investment Development Jsc has announced plans to build two luxury resorts in Da Nang City and Quang Ninh Province.

It plans to have 15-20% of its revenues coming from these projects though residential property will remain the biggest source.

The resort real estate market boomed in 2015-2019 with a surge in new supply, but in the last three years it has been facing difficulties due to the lack of a legal framework for non-traditional products such as condotels and officetels.

Sudico was established by state-owned hydropower plant operator Song Da Corp in 2001.

After a first housing project in Hanoi, it quickly expanded to many localities like Hoa Binh, Da Nang and Quang Ninh and became one of the biggest developers in the country.

But in the last 10 years it had been facing many challenges like acquiring licenses for its projects.

Its management said at the annual general meeting in March that most bureaucratic difficulties had been resolved.

It seeks to double revenues and pre-tax profits this year to VND1.15 trillion ($48.58 million) and VND320 billion.