Overview of Nam Long Investment Corporation NLG Nam Long Investment Corporation was established in 1992 and has since developed into one of Vietnam’s leading real estate developers.. Its
Introduction
Overview of Nam Long Investment Corporation (NLG)
Founded in 1992, Nam Long Investment Corporation has become one of Vietnam’s premier real estate developers, renowned for its long-term vision and dedication to creating sustainable urban communities Specializing in real estate investment and development, the company focuses on providing mid-range and affordable housing solutions to meet growing market demand With successful large-scale projects such as residential townships, apartment complexes, and commercial buildings, Nam Long has a strong presence in key Vietnamese cities including Ho Chi Minh City, Can Tho, and Long An.
Nam Long has demonstrated stable revenue growth and solid profitability in recent years, despite challenges in Vietnam's real estate market such as tighter credit policies and fluctuating demand The company's success is attributed to its clear development strategy and robust project pipeline, ensuring resilience amid market fluctuations Listed on the Ho Chi Minh City Stock Exchange (ticker: NLG), Nam Long attracts both domestic and international institutional investors, including strategic partners from Japan, strengthening its market position Renowned for its focus on providing housing solutions to Vietnam's expanding middle class, Nam Long remains a prominent and trusted player in the real estate sector.
Scope of Research and Methodology
This report aims to assess Nam Long’s financial health by analyzing its strengths and potential risks through the examination of its three core financial statements: the balance sheet, income statement, and cash flow statement over the past three years Key analytical methods such as horizontal analysis identify year-over-year trends and warning signs, while vertical analysis provides insight into the company's financial structure by expressing each item as a percentage of total assets or revenue Ratio analysis evaluates critical financial aspects including profitability, liquidity, operational efficiency, and stability, offering a comprehensive view of the company's performance Additionally, DuPont analysis decomposes return on equity into net profit margin, asset turnover, and financial leverage, enabling a deeper understanding of the main drivers of shareholder value.
Industry overview & Competitors analysis
Vietnam’s real estate market overview
Vietnam’s real estate sector has been navigating a complex macroeconomic landscape characterized by robust economic growth, evolving monetary policies and sector-specific challenges
In 2024, the country achieved a GDP growth rate of 7.09%, a notable increase from 5.05% in 2023
To be more specific, exports and foreign investment were key drivers: 2024 FDI inflows totaled about
In 2023, FDI disbursed reached a record $25.4 billion despite a slight 3% YoY decline, underpinning robust foreign investment flows Inflation remained well-controlled, with CPI at approximately 3.25% in 2023 and 3.63% in 2024, keeping within the targeted 4-4.5% range The State Bank of Vietnam adopted an accommodative monetary policy, maintaining the refinancing rate at around 4.5%, and expanded credit by approximately 15.1% in 2024 This combination of strong growth and low inflation creates a favorable macroeconomic environment for housing demand.
In July 2024, the National Assembly enacted a new Housing Law to streamline planning and approvals, promoting a proactive approach to affordable housing development A revised Land Law, effective January 2025, introduces updated land valuation and compensation methods to accelerate site clearance processes The Ministry of Construction is enforcing these new laws and has proposed measures such as tax surcharges on multiple-property ownership and tighter auction regulations to curb speculation and stabilize property prices In early 2025, the government initiated plans for a National Housing Fund to channel capital into social and affordable housing projects, addressing the imbalance where luxury units dominate supply despite 70% of buyers seeking homes under VND 3 billion These reforms, along with the State Bank of Vietnam’s credit relaxations, aim to boost project launches in the low- and mid-end housing segments, fostering a more inclusive and balanced housing market.
Despite sustained demand across various segments, the housing market faces a significant supply imbalance, with a surplus of high-end units and a shortage of affordable and mid-range housing Industry estimates indicate that by late 2024, approximately 70 million m² of high-end housing remains vacant—about 80% of all new luxury apartments and villas—while only 20% of new supply targets the affordable mass market Although around 70% of homebuyers seek units priced under VND 3–3.5 billion, most new launches in 2023-24 cater to higher-end buyers, with 67% of new buyers interested in apartments costing VND 2.5 billion or more In practice, the majority of transactions in 2023 occurred within the VND 2-3 billion range, while luxury projects saw minimal uptake Moreover, social housing remains critically underdeveloped, with only 103 projects—totaling 66,800 apartments—completed from 2021 to 2024, accounting for less than 7% of the goal to build one million units by 2030 Overall, a stark mismatch persists between abundant high-end inventory and a chronic shortage of affordable housing options.
While government policies have aimed to support recovery, Vietnam’s real estate market in
In 2024, the residential real estate sector faces ongoing market challenges due to several structural hurdles Complex approval processes and overlapping land and real estate regulations create significant delays in development projects Tight financing conditions, characterized by long maturities, rising bond rates, and cautious lenders, limit developers' access to capital, while high debt levels from earlier expansion increase liquidity pressures amid bond maturities and rollover demands Additionally, rapid urbanization has dramatically increased city populations, with urban residents now making up nearly 40% of the total population and experiencing an average annual growth rate of 3.06% between 2019 and 2024—1.5 times higher than rural areas—placing immense strain on housing development capacities.
Despite current challenges, positive developments are emerging in Vietnam’s residential real estate sector, driven by significant investments in transport and urban infrastructure, such as expanding the expressway network and completing key projects like Long Thanh Airport and metro lines in Ho Chi Minh City and Hanoi These improvements will increase accessible land around major cities and boost property values in suburban districts The country's youthful, expanding middle class and ongoing rural-to-urban migration are expected to sustain housing demand over the long term Additionally, export-driven growth and high FDI levels support household income growth, making mid-market housing in newly connected zones particularly attractive Analysts highlight that affordable and mid-range properties are likely to lead any recovery, meeting genuine demand and helping to stabilize prices, especially with potential support from government incentives like housing funds and tax breaks for social housing.
Nam Long’s Competitive positioning
Nam Long Investment Corporation (HOSE: NLG) focuses on the affordable and mid-range residential market in southern Vietnam, prioritizing housing for the majority rather than luxury margins The company's 2024-2026 plan aims to develop over 10,000 units, with about 65% designated as affordable homes—including EHome, EhomeS, and Flora condominiums priced from VND 1 billion to VND 4.5 billion—and the remaining units as mid-tier townhouses and villas like the Valora series, valued up to VND 15 billion This product mix aligns with market demand, as around two-thirds of buyers seek units priced below VND 2.5 billion In 2023, Nam Long delivered 1,609 units, generating VND 7,033 billion in revenue and VND 484 billion in post-tax profit, with recent initiatives such as the “Together Make Housing Affordable Again” campaign, which involved price cuts and financing support, significantly boosting sales and reinforcing its commitment to accessible housing.
In 2023, Nam Long achieved sales growth by tapping into unmet demand in the real estate market To diversify its portfolio geographically, the company shifted focus from sluggish markets like HCMC and Hanoi to regions with stronger local demand, such as Can Tho and Long An Notably, its Mekong Delta townships reflect strategic investments in areas with higher growth potential, enhancing overall sales performance.
Nam Long’s strategic advantages include a lean cost structure and steady equity funding, supported by low gearing that relies more on joint-venture capital with foreign partners than heavy debt Its focus on mass-market pricing and rapid project delivery, such as the upcoming EHome Southgate in Long An offering units from VND 1.1 billion, has enhanced its resilience during market downturns Despite the 2022–23 credit crunch and tightening liquidity, Nam Long achieved record-high revenue in 2023 and maintained a healthy cash-flow profile By specializing in affordable condos and townhouses in the South and maintaining a robust, flexible balance sheet, Nam Long effectively captures volume and competes successfully in its niche.
Benchmarking against competitors
(NLG) Kinh Bac City (KBC) Dat Xanh Group
2025) ~10.6 trillion VND ~17.5 trillion VND ~13.2 trillion VND
Profitability Stable, improving margins Volatile (declined YoY) Modest, recovering
Target Market Affordable/Mid-range
Mid-to-high-end Housing
Segment Focus Residential townships Industrial parks & urban land
Northern Vietnam (Bac Ninh, Hai Phong)
Strategic Strengths Liquidity, project turnover
Challenges Smaller scale, funding limits
Table 1: Comparison with Common-size Real Estate Firms in Vietnam
Financial analysis of Nam Long Group
Horizontal Analysis
Horizontal analysis is a key financial analysis technique used to assess changes in financial statement items over multiple periods By comparing data year-over-year, it helps identify trends and patterns in a company's financial performance This method involves calculating both the absolute change in monetary terms and the percentage change relative to a base year or the previous year Implementing horizontal analysis provides valuable insights into a company's growth, stability, and financial health over time.
Horizontal analysis is essential for assessing a company's financial performance over time by comparing key metrics such as assets, liabilities, and revenue across multiple periods This technique uncovers trends of growth, stagnation, or decline, allowing for effective benchmarking against competitors and identifying anomalies that require further investigation By providing valuable insights into financial health, horizontal analysis helps investors and managers make informed decisions about the company's future direction and overall stability.
Total Liabilities and Owner's Equity 173% 199% 210% 222%
Table 2: Horizontal analysis of Balance sheet a) Total Assets Analysis
Figure 1: Total Assets Breakdown of Nam Long Investment Corporation Over Time
From 2020 to 2024, Nam Long Group’s total assets grew significantly, jumping 73.1% in
Between 2021 and 2024, total assets increased significantly from 23.62 trillion VND, driven primarily by a surge in current assets, especially net inventories which grew from 6.07 trillion to 18.06 trillion VND, highlighting their critical role in asset growth In 2022, growth slowed to 14.7%, with total assets reaching 27.08 trillion VND, as net inventories slightly declined but still dominated current assets The growth stabilized at around 5.6% to 6.0% in 2023 and 2024, maintaining an upward trajectory with total assets hitting 30.32 trillion VND This trend reflects an explosive expansion in 2021 fueled by inventory investments, followed by steady inventory-led growth through 2024, despite a decline in long-term assets from 4.07 trillion to 2.77 trillion VND.
Figure 2: Liabilities and Liabilities Breakdown of NLG Over Time
From 2020 to 2024, Nam Long Group’s total liabilities increased significantly from 6.92 trillion VND to 15.75 trillion VND, reflecting a substantial 45.7% surge in 2021 driven by both current and long-term liabilities Notably, current liabilities grew from 4.44 trillion VND in 2020 to 10.23 trillion VND, underscoring the company's rising financial obligations during this period.
In 2024, total liabilities saw significant growth driven mainly by advances from customers (yellow) and short-term borrowings (blue), which reached peaks of 3.81 trillion VND and 2.96 trillion VND respectively Other current liabilities (red) also expanded notably, while long-term liabilities increased from 2.48 trillion VND to 5.52 trillion VND, predominantly fueled by long-term borrowings (green) rising from 1.53 trillion to 4.00 trillion VND The growth rate of long-term liabilities slowed from a peak of 36.5% in 2022 to 9.5% in 2023 and further to 4.4% in 2024, indicating a strategic shift towards reduced debt reliance, especially in short-term borrowings, as NLG moved towards a more balanced financing structure by 2024.
Figure 3: Structure of Owner’s Equity of NLG Over Time
Between 2020 and 2024, Nam Long Group’s owner’s equity expanded from 6.72 trillion VND to 14.57 trillion VND, reflecting a total growth of 117%, led by a 101.3% surge in 2021 due to significant capital and reserves increases driven by equity issuance Although there was a slight 1.6% decline in 2022, reducing equity to 13.32 trillion VND amidst decreases in capital and reserves, undistributed earnings continued to grow modestly The company's equity growth resumed in 2023 and 2024, with increases of 1.6% and 7.7% respectively, reaching 14.57 trillion VND as capital and reserves stabilized and undistributed earnings rose, highlighting Nam Long Group’s strategic focus on strengthening its equity base over time.
Cost of goods sold (COGS) 222% 152% 105% 268%
Profit/loss from joint ventures 64% 17% 295% 70%
Current corporate income tax expense 187% 231% 246% 354%
Table 3: Horizontal analysis Income statement
Nam Long Group’s (NLG) net revenue and net sales experienced significant fluctuation over recent years, increasing by 134.8% from VND 2,216.72 billion in 2020 to VND 5,205.52 billion in 2021, then declining by 26.7% to VND 3,181.42 billion in 2023, before rebounding with a 126.2% growth to VND 7,196.05 billion in 2024 This pattern indicates that NLG’s financial performance is heavily influenced by project cycles and economic shifts, reflecting the company's sensitivity to market conditions. -Amplify your content with SEO-smart summaries that capture key insights like Nam Long Group’s revenue swings—[Learn more](https://pollinations.ai/redirect/draftalpha)
The company's cost of sales significantly increased by 167.7%, rising from VND 1,545.95 billion in 2020 to VND 4,138.68 billion in 2024 Selling expenses experienced a remarkable surge, soaring from VND 67.66 billion to VND 742.44 billion, reflecting a 997% growth Additionally, general and administrative expenses rose from VND 366.81 billion to VND 651.17 billion, marking a 77.5% increase These figures indicate substantial escalation in overall operational costs over the period.
The company's net profit increased significantly from VND 850.33 billion in 2020 to VND 1,477.96 billion in 2021, marking a 73.8% growth However, profit declined sharply by 45.8% to VND 800.48 billion in 2023, highlighting challenges in maintaining profitability amidst rising costs Encouragingly, net profit rebounded to VND 1,387.39 billion in 2024, representing a 73.3% increase, demonstrating resilience despite previous fluctuations.
Net income to the parent company experienced significant fluctuations, increasing by 28.2% from VND 834.86 billion in 2020 to VND 1,070.83 billion in 2021, then declining sharply by 54.8% to VND 483.74 billion in 2023 due to rising expenses and increasing minority interest The company's net income slightly recovered by 7.1% to VND 517.89 billion in 2024, reflecting uneven shareholder returns amid expense pressures and changing financial dynamics.
Net Profit/Loss before tax 162% 4663% 95% 180%
Operating profit before changes in working capital 401% 3353% 310% 813%
Increase/Decrease in prepaid expenses 180% 319% -160% -44%
Other payments on operating activities 120% 0% 71% 135%
Net cash inflows/outflows from operating activities -117% 2367% 211% -110%
Proceeds from disposal of fixed assets - 0% - -
Loans granted purchases of debt instruments 1864% - 0% 2389%
Collection of loans proceeds from sales of debts instruments - 0% - -
Proceeds from divestment in other entities 0% 1001% 16% 16%
Cash flows from financial activities 207% -150% 53% 47%
Net increase/decrease in cash and cash equivalents -246% 35% 149% -351%
Cash and Cash Equivalents at the end of period 290% - 237% 507%
Table 4: Horizontal Analysis Cash Flow Statement
Cash generated from operations has shown steady growth from 2020 to 2023, with a slight slowdown in 2024 The net cash from operating activities increased consistently through 2023, but in
In 2024, the company's performance showed a slight decline compared to the previous year, highlighting recent financial trends Depreciation and amortization expenses continued to rise annually, reflecting ongoing investments in capital assets Interest expenses also increased steadily, indicating a higher debt load or rising interest rates Meanwhile, working capital movements—comprising receivables, payables, and inventories—remained relatively stable in recent years, suggesting efficient management of short-term assets and liabilities.
In 2024, cash used in investing activities experienced significant growth, with a notable increase in loans given to third parties and investments in debt instruments, indicating a strategic shift toward financial investments and lending While capital expenditures increased modestly, the rapid rise in financial assets highlights the company's focus on deploying capital rather than divesting, as evidenced by minimal proceeds from asset sales or disposals.
In 2024, financing cash flows shifted direction, marking a significant change from previous years Although borrowings had consistently increased over the years, 2024 experienced an extraordinary surge in debt repayments, likely driven by refinancing activities or efforts to reduce leverage Dividend payments saw a slight increase, while share buybacks remained minimal As a result, 2024 ended with a substantial cash outflow from financing activities, indicating a turning point from prior years characterized by moderate inflows or balanced financial activities.
Despite substantial outflows from investing and financing activities, the company ended 2024 with its highest cash balance in five years, highlighting strong liquidity management However, the overall net change in cash for 2024 was negative, indicating that cash reserves were utilized to fund strategic investments and debt reduction This approach demonstrates the company's focus on balancing growth initiatives with maintaining financial stability.
Definition and benefits
Vertical analysis, also known as common-size analysis, expresses each financial statement item as a percentage of a base figure within the same period, highlighting trends in cost efficiency, asset allocation, and profitability This method helps companies assess their financial health and stability over time When comparing data across multiple years, it often reveals minimal fluctuations in the proportions of financial items, indicating consistent financial performance While vertical analysis alone does not offer in-depth insights, it serves as a valuable starting point for more detailed financial analysis and decision-making.
Balance sheet analysis
Total Liabilities and Owner's Equity 100.00% 100.00% 100.00% 100.00% 100.00%
Table 5: Vertical analysis of Balance sheet
Vertical analysis of Nam Long Group (NLG) from 2020 to 2024 reveals a stable and conservative financial structure, emphasizing strategic liquidity management and asset efficiency In 2024, NLG's balance sheet performance remains strong when compared to industry peers such as Kinh Bac City Development Holding Corporation (KBC) and Dat Xanh Group (DXG), highlighting its solid financial positioning within the real estate sector.
Table 6: 2024 Common-Size Analysis of Balance Sheet Comparison: NLG vs KBC vs DXG
NLG’s balance sheet reveals a consistently high proportion of current assets, exceeding 70% of total assets from 2020 to 2024, with an unprecedented 90.87% in 2024, indicating a strategic focus on maximizing liquidity and operational flexibility Compared to industry peers like KBC, with a current asset ratio of 76.71%, and DXG, at 89.53%, NLG maintains a higher quality current asset structure This strong liquidity position underscores NLG’s emphasis on asset management and financial stability within the competitive landscape.
Cash and cash equivalents have become a key focus for Nam Long, with the proportion of cash over total assets rising sharply from 7.87% in 2020 to 17.95% in 2024, signaling increased short-term funding and liquidity management Between 2020 and 2021, the company maintained low cash levels as it invested heavily in major projects like Akari City and Mizuki Park, but from 2022 onwards, Nam Long significantly increased its cash reserves to support project handovers and ensure financial stability This strategic shift demonstrates prudent financial management aimed at improving liquidity and protecting against market volatility Notably, Nam Long's cash-to-assets ratio surpasses that of KBC (14.67%) and DXG (4.29%), highlighting its superior short-term liquidity and funding capabilities.
Between 2021 and 2024, Nam Long Group effectively managed its accounts receivable, maintaining it between 8.19% and 16.33% of total assets During the COVID-19 pandemic in 2021, receivables surged due to flexible sale policies, but by 2023-2024, the company had strengthened its collection practices, reducing receivables to below 15% of total assets This improvement was driven by faster collections from key projects like Akari and Southgate, signaling enhanced cash flow management Benchmarking against industry peers in 2024 reveals that NLG’s accounts receivable ratio is significantly lower than KBC’s 25.79% and DXG’s 37.77%, highlighting NLG’s operational advantages in faster cash recovery, reduced capital lock-in, and minimized bad debt risk.
Inventories consistently represented the largest component of Nam Long’s asset structure, rising from 44.49% in 2020 to a peak at 65.59% in 2021 before gradually declining to 59.35% by
2024 This inventory trend reflects the real estate development cycle, where assets are accumulated during construction and gradually recognized as revenue upon project handover
Nam Long’s high inventory-to-assets ratio of 30.98% compared to KBC’s 30.98% and DXG’s 46.13% highlights efficient inventory management rather than a drawback The company’s rapid project turnover, evidenced by the successful handover of projects like Southgate and Akari, demonstrates a strong project monetization model Unlike competitors such as DXG, which face liquidity issues due to stagnant inventory buildup, Nam Long effectively balances large inventories with solid liquidity This ability to scale operations without overstretching its financial resources distinguishes Nam Long as a resilient and growth-oriented real estate developer.
From 2020 to 2024, Nam Long Group's total liabilities consistently hovered around 50% of total assets, demonstrating a stable leverage profile The lowest debt ratio was 42.72% in 2021, indicating prudent debt management By 2024, the company's total liabilities reached 51.95%, reflecting a moderate and controlled approach to leverage, supporting sustainable growth and financial stability.
In 2024, current liabilities made up 33.73% of total assets, surpassing long-term liabilities which remained steady at 18.22% This indicates that Nam Long primarily relies on short-term debt to fund working capital and project activities, while maintaining a stable level of long-term financing to mitigate refinancing risks and ensure financial stability.
KBC’s total liabilities accounted for 53.80%, with a significant portion (25.60%) rooted in long-term debts, indicating a heavy reliance on long-term funding In contrast, DXG’s liability ratio was slightly lower at 47.82%, but its higher current liabilities ratio suggests increased short-term funding pressure Nam Long’s liabilities structure offers an ideal balance, providing financial flexibility while minimizing liquidity risks Additionally, NLG benefits from a manageable average cost of debt, supported by its strong credibility and robust relationships with both domestic and international financiers.
Shareholders' equity has consistently accounted for a significant portion of NLG’s capital structure, ranging from 47.30% to 57.28% over the analyzed period The equity notably increased in 2021 following the issuance of new shares to strategic Japanese investors, demonstrating Nam Long’s dedication to long-term growth and strengthening its international partnerships.
By 2024, equity capital accounted for 48.05% of total assets, positioning slightly below DXG at 52.18% but higher than KBC at 46.20%, indicating a robust equity structure The company's funding structure is predominantly composed of paid-in capital and common shares, which together contribute approximately 25%-30% of total assets, serving as the backbone of Nam Long’s financial foundation This strong base capital demonstrates long-term investor commitment and provides stable financial support essential for the company’s strategic growth initiatives.
DXG has a lower proportion of paid-in capital in its asset base and exhibits higher volatility due to frequent capital restructuring In contrast, KBC maintains a more stable equity profile but relies more heavily on long-term liabilities to support expansion efforts Nam Long prioritizes equity financing, especially through strategic foreign partnerships, which bolster its credibility and provide resilience against market volatility.
Nam Long’s undistributed earnings varied between 9.21% and 15.63%, demonstrating its strong ability to reinvest profits while consistently maintaining dividend payments Meanwhile, minority interests remained relatively stable, highlighting the company's strategic model of cooperation through joint ventures and partnerships.
Nam Long Group demonstrates excellent financial strength through high liquidity, characterized by a substantial proportion of current assets and increasing cash reserves, which enhance short-term solvency and strategic flexibility The company maintains efficient receivables management, ensuring timely cash collection and minimizing bad debt risks Its inventory management is particularly strong within the real estate sector, supporting steady project completion and cash flow Additionally, Nam Long balances its leverage effectively by avoiding excessive debt, thereby reducing financial risks The company's robust equity base, backed by stable retained earnings and strategic investor capital, strengthens its resilience against external shocks and fosters sustainable long-term growth.
Nam Long faces certain challenges, including a high inventory ratio that, while managed efficiently, could pressure liquidity if sales slow or market conditions decline Additionally, reliance on short-term liabilities, despite a substantial long-term portion, poses refinancing risks amid potential credit tightening However, compared to KBC and DXG, Nam Long boasts a healthier financial structure, lower risk exposure, and better capital efficiency The favorable macroeconomic outlook for 2024–2025, with declining interest rates and projected GDP growth of around 6.8%, along with regulatory reforms enhancing transparency and liquidity in the real estate market, positions financially sound developers like Nam Long to capitalize on growth opportunities.
Nam Long’s strong financial position allows it to capitalize on emerging opportunities in the affordable housing market, which boasts high end-user demand Its disciplined strategy minimizes exposure to risks from policy tightening or credit shocks, setting it apart from over-leveraged competitors and highlighting its resilience in the real estate sector.
Table 4: Income statement of Nam Long Group from 2020 to 2024 (Currency: VND)
Profit/loss from joint ventures
Current corporate income tax expense
Profitability Ratios
Net Profit For the Year 850.327 1.477.959 865.546 800.477 1.387.389
Table 7: Gross Profit Margin and Net Profit Margin of Nam Long Investment Corporation (VND Million)
Firgure 4: Gross Profit Margin and Net Profit Margin of Nam Long Investment Corporation (%)
Nam Long Group (NLG) has demonstrated notable improvements in its gross profit margin
Nam Long’s gross profit margin (GPM) has shown a significant upward trajectory over recent years, rising from 29.68% in 2020 to a peak of 49.10% in 2023, before slightly declining to 42.49% in 2024 This growth reflects the company’s strategic emphasis on high-margin real estate projects, such as Akari City Phase 2, which significantly boosted revenue and profitability with a GPM of 42.6% Operational efficiencies, including accelerated project handovers and cost optimization, have also played a vital role Additionally, profits from joint ventures like the Mizuki project have provided supplementary margin support, although earnings volatility from these ventures introduces some variability The slight decrease in GPM in 2024, despite robust revenue growth, indicates rising input costs and a potential shift toward slightly lower-margin units Overall, Nam Long’s effective cost management, focus on high-value projects, and leveraging of strategic partnerships have been crucial in enhancing gross profitability Compared to the industry average of 25–30%, the company consistently outperforms with gross margins ranging from approximately 30% to over 40%, highlighting strong cost control and favorable project pricing that confer a competitive advantage.
Nam Long’s net profit margin has experienced significant fluctuations, primarily influenced by non-operating income and changes in financial structure The margin peaked at 37.6% in 2020, driven by extraordinary financial income and strong contributions from joint ventures, which temporarily boosted net profit above gross profit Despite improvements in gross margins in subsequent years, the net margin declined to 19.3% in 2024 due to rising financing costs, increased selling and administrative expenses, and decreased income from associates The data indicates that Nam Long relies heavily on non-core income during strong years, while operational efficiency becomes more apparent when external conditions soften Generally, Nam Long’s net profit margin aligns with or exceeds the industry benchmark of 13–20%, with exceptional years like 2020 inflating the margin beyond sustainable levels Even in weaker years, NLG maintains margins close to the upper end of industry standards, reflecting robust bottom-line management.
Net Profit For the Year 850.327 1.477.959 865.546 800.477 1.387.389
Table 8: ROA and ROE of Nam Long Investment Corporation (VND Million)
Figure 5: ROA and ROE of Nam Long Investment Corporation (VND Million)
Nam Long’s ROA has closely followed its revenue and profit trends, highlighting that the company's ability to convert assets into profit depends heavily on business performance cycles Between 2020 and 2021, ROA remained strong at around 6.2%, driven by a surge in revenue and profits However, from 2022 to 2023, declining revenues and expanding total assets caused ROA to drop sharply to 2.8%, indicating significant asset investments without proportional income generation The recovery to 4.58% in 2024 was fueled by a major revenue rebound and enhanced operational efficiency, though it still remains below pre-pandemic levels Overall, Nam Long’s ROA has ranged between 2.8% and 6.2%, outperforming the industry average of 2–3% during strong years, which demonstrates effective asset utilization during high-growth periods and maintained competitiveness during downturns.
Nam Long’s Return on Equity (ROE) reflects its efficiency in using shareholders’ equity to generate profits; for example, ROE peaked at 12.65% in 2020 and declined to 9.52% in 2024 despite net income recovery, indicating moderate leverage with relatively close ROA and ROE figures (e.g., 4.58% vs 9.52%), which suggests the company relies on some debt to enhance returns without excessive risk Over the years, ROE has ranged from 5.9% to 12.6%, aligning with the industry average of 7–10%, with higher earlier levels driven by stronger net profits and more recent levels remaining healthy and sustainable.
Liquidity Ratios
Table 9: Curent Ratio of Nam Long Investment Corporation (VND Million)
Table 10: Quick Ratio of Nam Long Investment Corporation (VND Million)
Figure 6: Current Ratio and Quick Ratio Over Time of Nam Long Investment Corporation
Nam Long Investment (NLG) presents a textbook case of liquidity imbalance driven by sector-specific inventory structure The company’s current ratio remained strong, reaching 3.1x by Q4
In 2024, Nam Long's current ratio of over 1.5x exceeds the industry norm of 1.2–1.4, suggesting ample short-term assets to cover liabilities However, this apparent strength is largely superficial, as over 68% of total assets—mainly large-scale property developments like Waterpoint, Izumi City, and Akari City—are high-value, illiquid inventories that cannot easily be sold during market downturns Consequently, the company’s quick ratio stands at just 0.87x, only slightly above the industry average of approximately 0.6x, indicating a vulnerable position where Nam Long would struggle to meet short-term obligations solely with liquid assets if inventories were excluded.
Vietnam’s real estate sector has faced significant liquidity risks, worsened by legal bottlenecks, weak demand, high financing costs, and regulatory tightening from 2022 to mid-2024, which slowed project approvals and sales Nam Long was particularly affected, with multiple projects delayed due to land clearance issues and legal uncertainties However, by late 2024, the company made progress in overcoming these challenges, resuming handovers and restoring revenue to VNĐ2.2 trillion in Q4 With the Vietnamese government implementing legal reforms, lowering interest rates, and enhancing transaction transparency, a cautious recovery is expected in 2025, offering opportunities to unlock inventory value and improve liquidity ratios Despite this, the persistent gap between current and quick ratios signals short-term liquidity risks, highlighting the need for investors and creditors to monitor the company's financial health closely.
Efficiency Ratios
Table 11: Total Assets Turnover of Nam Long Investment Corporation (VND Million)
Nam Long’s Total Asset Turnover reflects a declining trend in operational efficiency from
From 2021 to 2023, Nam Long experienced significant fluctuations in its asset turnover ratio, reflecting the company's operational challenges and market conditions In 2021, the ratio was a healthy 2.50x, substantially outperforming the industry average of approximately 0.2x, indicating strong and sustainable asset utilization to generate revenue However, this figure declined sharply to 0.88x in 2023, highlighting difficulties in converting a growing asset base, particularly increased inventory, into sales amid market stagnation and project delays The ratio rebounded to 2.24x in 2024, signaling operational normalization as legal bottlenecks eased and revenue from delayed project handovers, such as Waterpoint and Akari City, began to materialize This volatility underscores Nam Long’s dependence on project-based revenue, where asset utilization can fluctuate markedly depending on project completion timing.
Table 12: Inventory Turnover of Nam Long Investment Corporation (VND Million)
The Inventory Turnover ratio reveals a troubling decline from 2021 to 2023, dropping from 0.32x to just 0.10x, indicating Nam Long was selling only 10% of its average inventory annually and facing a significant buildup of unsold real estate With inventories making up nearly 70% of total assets, this situation severely impacted cash flow and increased liquidity risks Although there was an improvement to 0.23x in 2024, reflecting resumed project deliveries and better inventory monetization, it remains well below the industry average of 0.5–0.7x This suggests inventory remains a key bottleneck, and until absorption rates increase and more projects are completed, inventory turnover will continue to be sluggish.
Solvency Ratios
Table 13: Solvency Ratios of Nam Long Investment Corporation Over Time (VND Million)
Nam Long’s debt ratio has remained between 0.51 and 0.53 in recent years, indicating that just over half of its assets are financed through liabilities, reflecting a moderately leveraged position While this level of leverage signifies a balanced approach, it also points to a reliance on debt financing that could increase financial pressure if cash flows decline The company's debt ratio was lower at 0.43 in 2021 but increased to 0.52 by 2024 due to additional borrowing for project expansion The steady rise in total liabilities, which reached nearly VND 15.75 trillion in 2024, underscores Nam Long’s ongoing strategy of leveraging debt to support its large-scale real estate developments.
The debt-to-equity ratio for Nam Long has increased from 0.75 in 2021 to 1.08 in 2024, surpassing the industry benchmark of 0.6–0.7 and indicating a higher reliance on debt funding A ratio above 1.0 suggests that the company is financing more of its operations through debt than equity, which slightly elevates its risk profile, especially in the capital-intensive and cyclical real estate industry Despite this, the company's financial leverage remains stable around 2.0–2.1x, demonstrating that leverage levels are controlled and manageable Overall, Nam Long’s solvency appears sustainable; however, its substantial debt exposure means that interest rates, refinancing conditions, and project cash flow stability will be crucial factors influencing its long-term viability If Vietnam’s real estate market recovers quickly in 2025, this increased leverage could serve as a competitive advantage, whereas a sluggish recovery might heighten refinancing risks.
Conclusion & Recommendations
Nam Long Investment Corporation has shown remarkable resilience amid Vietnam’s ongoing real estate market downturn The sector has faced challenges such as legal and bureaucratic delays, tight credit conditions, rising bond yields, and an oversupply of high-end housing, leading to decreased liquidity and slower project execution However, initial signs of recovery are emerging, driven by government reforms like the new Housing Law and Land Law, efforts to streamline project approvals, and a focus on financing affordable housing, which are gradually restoring investor confidence.
Simultaneously, macroeconomic tailwinds, such as robust GDP growth, improved infrastructure, and a growing urban middle class, are helping to stabilize housing demand, particularly in the affordable and mid-range segments.
This report offers a comprehensive analysis of Nam Long’s financial health, operational efficiency, and strategic position compared to key competitors It highlights the company’s strong liquidity profile, moderate debt levels, and dedicated focus on affordable housing, aligning with both consumer demand and government policies However, challenges persist, including revenue dependency on large-scale projects like Akari City, which presents concentration risk, and slow inventory turnover that ties up capital, posing liquidity challenges during market downturns.
To ensure sustained growth during the sector’s recovery, Nam Long should prioritize affordable housing to meet persistent end-user demand and align with national housing policies Diversifying its revenue streams by expanding its project portfolio geographically and by scale will reduce reliance on a limited number of mega-projects Additionally, enhancing inventory turnover through faster project execution and more aggressive sales strategies is essential for unlocking cash flow and reducing liquidity risk By implementing these strategic actions, Nam Long can capitalize on the recovering market and strengthen its leadership position in Vietnam’s residential real estate sector.