“Sonadezi should develop a long-term development strategy, leverage resources and build a corporate culture and successor team for continued solid growth “, this is the instruction of Mr. Nguyen Hong Linh – Member of the Committee Executive Committee of the Party Central Committee, Secretary of the Dong Nai Provincial Party Committee during a meeting with Sonadezi

Immediately after essentially controlling Covid, the Party Committee and government of Dong Nai province pro-actively implemented many initiatives and solutions to support the local business community’s recovery and development. On November 2, a delegation of Dong Nai Provincial Party Committee led by Secretary Nguyen Hong Linh visited and worked with one of the major corporations in the province, Sonadezi. The visit was intended to explore and address difficulties in business as well as in Party building and development within the Company.

A working session between the delegation of Dong Nai Provincial Party Committee and Sonadezi

At the meeting, Sonadezi said that the prolonged Covid-19 pandemic severely affected business activities, with construction and building materials being the hardest hit areas. Besides, divestment from other businesses could not be carried out as planned. Many customers in Sonadezi’s industrial parks, due to difficulties caused by Covid, asked for rent discounts extended payment, which means revenue and profit targets may not be reachable. Sonadezi also said that due to social distancing, it is not possible to search and develop new projects, and the contact with customers to attract investment is also limited, affecting the Company’s development speed.

However, despite the challenges, Sonadezi and its subsidiaries continue to promote corporate social responsibility. In Covid control aspects alone, Sonadezi has provided localities with nearly VND 30 billion to purchase medical equipment and vaccines. The Company has also provided support for frontline forces and people in Covid-hit areas…

Mr. Tran Thanh Hai – Secretary of the Party Committee, CEO of Sonadezi reported on Sonadezi’s Party building work

At the same time, to share difficulties with people affected by Covid, a member of Sonadezi, Dong Nai Water Supply Joint Stock Company, has offered customers exemptions and discounts on water bill amounts for the periods covering August, September and October 2021. Specifically, a 100% discount applies to poor and near-poor households; a 100% discount is also offered to concentrated quarantine areas and field hospitals in service of Covid-19 control efforts in the province; a 10% discount on the first 10m3 applies to household customers.

In the first 9 months of 2021, Sonadezi achieved a revenue of VND 3,481 billion with profit after tax reaching VND 728 billion. The Company paid VND 913 billion to the State budget, and the return on equity reached 9.83%. Sonadezi also said that in order to promote technology application and digital transformation, Sonadezi is working with FPT to implement a Group-wide data digitization program which is expected to be completed in 2021.

Regarding the divestment of State capital at Sonadezi (the parent company), on September 14, 2021, the People’s Committee of Dong Nai province issued document No. 11073/UBND-KTNS to the Ministry of Planning and Investment proposing an adjustment of the divestment schedule in the 2021-2025 period.

Mr. Vo Tan Duc – Vice Chairman of Dong Nai Provincial People’s Committee spoke at the meeting with Sonadezi

Speaking at the meeting, Mr. Vo Tan Duc – Vice Chairman of Dong Nai People’s Committee acknowledged Sonadezi’s efforts to overcome difficulties, ensure the maintenance of production and business and make positive contributions to the province in the fight against Covid-19. During the remaining time of 2021, Sonadezi needs to strive to achieve over 90% of the annual target and develop new development strategies to adapt to each level of the pandemic. Vice Chairman Vo Tan Duc also suggested Sonadezi research and take advantage of development opportunities in the province to invest in new projects that match its potential, advantages, experience and brand. Regarding the problems and difficulties reported by Sonadezi, the Provincial People’s Committee will promptly address them to enable Sonadezi’s operation and development.

According to Sonadezi Chairwoman Do Thi Thu Hang, Sonadezi is expected to fulfill the 2021 plan by at least 80% and keep the dividend rate of 10%. The Corportation, however, is still striving to deliver 100% of the target. Regarding the 2022 plan, Sonadezi aims to achieve a YOY growth of at least 5%.

Sharing about a conservative development scenario with a set growth rate of 5% – 7%, Madam Hang said that in the context of the highly risky pandemic, Sonadezi has built a response plan for each pandemic level and each stage. Besides, in the face of Covid impacts on enterprises in Sonadezi’s industrial parks as well as customers in various fields, Sonadezi has set the most important goal of siding with customers and sharing difficulties through the exemption and reduction of infrastructure fees, factory rental fees, etc. as well as other supporting activities. Sonadezi upholds the sharing of difficulties with customers and the community.

Mrs. Do Thi Thu Hang – Sonadezi’s Chairwoman of the Board of Directors reported on the operation situation and development orientation of the Corporation.

“As an upcoming development orientation, Sonadezi continues to invest in industrial parks – urban areas. This is a product Sonadezi initiated 10 years ago with large-scale projects namely the Chau Duc Industrial Park, Urban Area and Golf Course in Ba Ria – Vung Tau. This model has received great support from the local authorities because it optimally meets the demand for integrating the land fund to build a production plant and a residence for experts and workers in the same project. Recently, during Covid, we have clearly seen the shortcomings of building separate, isolated, and disconnected industrial parks and residential areas. Hence, further investment should be made in industrial park-urban area products. At the same time, Sonadezi will study and join local authorities in social housing development projects,” Mrs. Do Thi Thu Hang said.

In addition, in the field of seaports, Sonadezi also proposed that the province pay attention to a master plan to expand the Dong Nai port system to meet the increasing demand for logistics, especially when Long Thanh International Airport and new industrial parks in the province come into operation.

Speaking at the meeting, Secretary of the Dong Nai Provincial Party Committee Nguyen Hong Linh highly appreciated the business performance as well as the Party building work at Sonadezi. Especially, despite the Covid time challenges, Sonadezi still managed to basically fulfill its tasks, generate profits, contribute to the State budget, and maintain stable jobs for employees. Mr. Nguyen Hong Linh hailed Sonadezi as one of the locally based State-owned enterprises with many important activities and contributions.

“With more than 900 party members, the Sonadezi Party Committee is a large-scale one. It is thus necessary to continue to pay attention to building a clean and strong Party organization and maintain the Party Committee at an appropriate scale to create dynamics for development, ensuring the principles of democratic centralism and paying attention to the membership growth,” emphasized Party Secretary Nguyen Hong Linh.

Member of the Party Central Committee, Secretary of the Dong Nai Provincial Party Committee Nguyen Hong Linh addressed the meeting

Mr. Nguyen Hong Linh recommended that Sonadezi should adopt a development strategy for the next 10 years to ensure solid development in the long term. Sonadezi is also advised to have flexible solutions in each period and to choose strategic areas for development and investment. Regarding the attraction of investments, Sonadezi’s industrial parks must be careful and prudential in choosing partners and secondary investors. Attracting investment at any cost is not recommended. Investors chosen should be those who can meet Dong Nai’s criteria for sustainable development. Besides, Sonadezi should also seize opportunities when Long Thanh Airport comes into operation because this project will open opportunities for many businesses and industries, including Sonadezi’s 4 areas of business.

Regarding the divestment issue, Mr. Nguyen Hong Linh requested that Sonadezi continue to carry out divestment according to the approved plan and in accordance with the law. At the same time, he requested that Sonadezi be very responsible, strictly comply with the law on management of the its assets, resources and land, ensuring transparency and optimal efficiency to the State, the community and society. “Sonadezi has great advantages with a land fund located in the prime locations of Dong Nai province with good infrastructure. These are Sonadezi’s important resources, and it is necessary to protect their values and optimally leverage them,” Mr. Linh said.

In addition to the above mentioned issues, the Secretary of the Dong Nai Provincial Party Committee also emphasized on building corporate culture, properly implementing the regulations on democracy in corporate environment, taking care of employees and especially training and planning of successors with vision, capacity and qualities to maintain the long-term development of the business, avoiding a gap in succession that has led to the collapse of business in a number of companies. These factors will create great value and solid growth for Sonadezi.