In recent studies from PwC Vietnam and consulting units and specialized associations, Proptech is considered an open market with great potential, attracting great attention from organizations and investment funds. private…

Real estate digital conversion in Vietnam is still slow

Commenting on the development ability of technology businesses in general in Vietnam, Ms. Khuat Kieu Trang - Investment Specialist at KK Fund (a Fund that invests in early-stage technology startups such as Blockchain, Proptech, Fintech...) shared: "From comparison with traditional industry groups, we see that Vietnam still has a lot of room for Tech startups to develop in the coming time. When there was a Blockchain wave, Vietnam received a lot more attention for Tech Talent. So more and more programs are pouring in. At the same time, developed countries, such as the US, Japan... also pay a lot of attention to the Vietnamese market."

In the context of digital transformation and technology applications becoming a "race for survival" for Vietnamese businesses, the real estate sector cannot stand aside. Especially when, in Vietnam, the scale of the real estate industry is forecast to grow 6 times, reaching 1,232 billion USD, the industry's proportion to GDP is also expected to increase and reach 13.6% by 2030 (Source : Vietnam Real Estate Association). Meanwhile, some evaluation reports say that to promote the real estate market's effective liquidity, the cost of investors for this activity is on average 15% and can be up to 25% depending on time, which means by 2030 it will be about 246.4 billion USD.

This is a money-making opportunity for Proptechs to directly participate in applying technology to reduce support costs for this real estate transaction. Therefore, promoting digital transformation for the real estate industry to exploit and add value to the industry as well as help the Government and State carry out planning and management of industry development is extremely necessary. necessary and urgent.

In general, technology application in the real estate sector (Proptech) in Vietnam is in phase 2.0 and gradually transitioning to 3.0, slower than the general speed in the world and developed countries. Besides many favorable factors such as State policies, the development of information technology infrastructure, economic growth and urbanization, and FDI capital..., Proptech still faces many difficulties. Difficulties that need to be overcome include Limited understanding of digital technology applications in the industry; The source of investment capital for technology development for the real estate sector is still not clear and large enough; Innovative thinking is not yet popular, making it difficult for "new things" to be recognized correctly, fully, objectively and receive the necessary support from the market as well as state management agencies. From there, it is easy to create a reluctance toward digital transformation among businesses, real estate brokers, and customers.

Just like how e-commerce platforms in commodity transactions or Uber/Grab reshape the "ride-hailing" market in Vietnam, it is undeniable that Proptech's role in reshaping business activities and services creates motivation to promote sustainable development of the real estate industry.

Users search and look up planning information on Proptech platforms

According to JLL and Tech in Asia, in 2021, Proptech start-ups in Vietnam raised more than 40 million USD. In the first half of 2022, the market also recorded 2 more startups successfully raising capital. Attracting investment capital of up to tens of millions of USD partly proves the feasibility of the Proptech model in Vietnam. However, the level of investment compared to the real development needs of the Vietnamese Proptech model is still very small. A minimum investment capital of 400 million USD (9,400 billion VND - only 0.03% of the market value in 2030) is required each year to be commensurate with the market's potential. To truly create a big push and a revolution for the Real Estate industry, startups in the field of Vietnamese Proptech also need greater resources, and more systematic and diverse investment and support.

Product breakthroughs will increase investment attraction

Grasping the needs and potential of the market, in recent years, there have been many Proptech start-up companies established in Vietnam. Along with that, is the launch of many products and solutions to solve the "pains" of the real estate industry. However, according to the assessment of research units such as PwC Vietnam..., there is still a lack of comprehensive solution system providers. In other words, a full real estate technology ecosystem is urgently needed.

As part of Vietnam's Proptech ecosystem, Meey Land is mentioned as a pioneer in digital transformation to increase liquidity, maximize real estate usage, and contribute to affirming Vietnamese intelligence - the brand. Vietnamese. In addition, Meey Land has launched many technology applications that have been recognized through prestigious awards in the field of technology, such as Sao Khue, Vietnam Digital Awards, Top Industry 4.0 Vietnam...

Discussing more about the business's operations, Mr. Hoang Mai Chung - Chairman of the Board of Directors of Meey Land Group Joint Stock Company shared: Meey Land's staff always adhere to the principle of taking public products. Technology is the focus of business development. The Meey Land Real Estate Technology - Finance ecosystem is very diverse, able to meet the needs of many different customers while still ensuring specificity. In addition, Meey Land always updates new technologies to improve and enhance product efficiency.

Meey Land's desire is not only to add value to the industry but also to coordinate and invest with other units to build and develop the Proptech market, contributing to the country's overall digital transformation.

All of Meey Land's applications come from actual market needs. According to research data compiled from PwC Vietnam, in 2021 the real estate brokerage segment on technology platforms will receive the most investment capital among the segments, reaching about 53 million USD. From there, we can see that the level of investor interest in this segment is very high. Correctly predicting market demand, Meey Land launched Meey CRM - A customer demand management application specifically for real estate brokers in June 2021 and initially received support from customers. "Meey CRM's vision is to become a "digital real estate trading platform" service provider for traditional real estate trading floors and investors. A powerful tool to help developers Brokers manage real estate information and connect with customers and other brokers. I think predicting the market and seizing opportunities is extremely important in the development strategy of every business and Meey Land has partly done that well," Mr. Hoang Mai Chung affirmed.

Also according to Mr. Hoang Mai Chung, based on the research and evaluation of PwC Vietnam and a number of specialized reference sites, Meey Land experts proposed the Proptech Market Map (Real estate technology market map). In particular, products of the Meey Land Ecosystem are contributing significantly to the comprehensive picture of the market. For example, in the Social Network category, there are Meey Share, Meey TV, Meey Project, Meey Chat; the Listing category has meeyland.com; The Digital Broker category includes Meey CRM, Meey Ads... "Meey Land's desire not only stops at adding value to the industry but also coordinates and invests with other units to build Building and develop the Proptech market, contributing to the country's overall digital transformation. The map is in the process of being built and may not be complete, so it is necessary to have your participation and suggestions to continuously update in time. next time", the Chairman of the Board of Directors of Meey Land Group Joint Stock Company emphasized.

Now, technology has become the key factor that makes a difference. If businesses can master technology, they will have the opportunity to break through and dominate the domestic market as well as attract foreign investment capital. With many available support policies and potential, Proptech will certainly have faster and more stable steps in the future.