(DTC) With quite obvious changes such as re-orienting the business investment industry, consolidating high-class status, moving headquarters, renaming the company … stock code DL1 of the Group Joint Stock Company. Vietnam Renewable Energy is transforming for a new stage. Securities Investment had a quick exchange with Mr. Nguyen Dinh Trac, the new General Director of the Group on the threshold of the 2021 shareholder meeting.
First of all, congratulations on your newly appointed General Director of Vietnam Renewable Energy Group Joint Stock Company (Stock code: DL1). Could you please share some information regarding the changes taking place with the Company recently?
Thank you ! First of all, internal changes have been made for a long time when we merged real estate projects as well as invested and merged solar energy. To perfect and strengthen a long-term growth strategy, we have selected three industries as the three strategic spearheads to create a solid foundation for the next development step.
Specifically, three main industries have been formed and are being consolidated, including i) renewable energy sector such as rooftop solar, farm and wind power; ii) real estate projects for apartments and residential land plots; iii) produce electronic equipment, electrical household appliances for export and supply to the domestic market, as well as to supply semi-finished products as inputs to foreign corporations in Vietnam.
The lawsuit of the entire leadership apparatus, specifically the personnel of the board of directors and the executive board, in order to serve the above-mentioned strategic ambition, sir?
Yes, we think the human factor is decisive. We are gradually suing the entire leadership and operating apparatus to create a premise for a long-term strategy. We are implementing many large projects such as wind power Ia Boong - Chu Prong, a project with a capacity of 50MW, with a total investment of more than 1,600 billion VND, the project has just been approved by Gia Lai Provincial People’s Committee for investors. is Chu Prong Renewable Energy JSC as the investor on November 16, 2020; Golden Land real estate project 900 apartments located on an area of 11,623m2, Huynh Tan Phat Street, Tan Thuan Tay Ward, District 7, Ho Chi Minh City, … the invitation of a number of international personnel to participate management to mobilize diverse resources for those projects and projects to be implemented in the future.
Choosing a strategic industry is currently a “hot” industry like solar energy and is facing difficulties after a period of massive development, what do you think?
In my life, I believe a lot in the word “destiny”, but in choosing a strategic career, we have a long view on that issue.
Specifically, first of all, let’s talk about the renewable energy industry, which comes from the long-term electricity demand for a country of nearly 100 million people and the rapidly increasing demand for electricity for production, besides, Resolution No. 55-NQ/TW of the Politburo dated February 11, 2020 on orientations of Vietnam’s national energy development strategy to 2030, with a vision to 2045 has assessed the development of the energy industry in general. and the electricity sub-sector in particular has shown the political will to evaluate the importance and promote the development of the energy industry, this is a very potential opportunity for investors. Although, in the short term, some renewable energy projects are facing some difficulties such as capacity release, interest expense, waiting for new price policy (FIT3),… however, for projects having a good location and having cheap capital is still a very attractive opportunity.
Regarding the real estate industry: the projects we participate in are facing difficulties due to some legal procedural factors, which is the same situation as many projects in the city. However, with the introduction of Decree 148/2020/ND-CP along with the Investment Law 2020, the Law on Construction (amended) 2020,… has helped our projects to be gradually dismantled and being implemented.
For the manufacturing of electrical equipment, household appliances and electronics for export, we now have a very large and stable international market with modern and synchronous production infrastructure in the Hi-Tech Park of Ho Chi Minh City. Thu Duc and in the near future we will expand our production plants in Binh Duong and Da Nang.
How does the Covid-19 pandemic affect the company’s business, sir?
Without exception, the Covid-19 epidemic has had a marked impact on our business. That is also the reason why we set the 2021 business plan quite modestly. Covid-19 has had a strong negative impact on every corner of the globe from lack of demand to supply disruptions, production and circulation bottlenecks, etc.
For the company’s transportation service and parking lot, which are being significantly affected, for our export production segment, in terms of demand, consumption has not decreased significantly but costs increased due to raw material prices. input and freight increased. However, there is an old saying “in danger”, while we are seeing the blanks of the market during and after the pandemic, we are currently conducting research and production for some new products such as ice cream. disinfectant paste, automatic medical declaration machine, … and many products to meet the needs of the post-epidemic market.
The world will change drastically after the Covid-19 pandemic, the so-called “new normal” will certainly be better than the “normal”, (laughs!). Currently, our target markets are fine. plan to return and with the nationwide vaccination campaign being implemented quickly, business activities will return to normal in the near future.
Currently, the stock price of DL1 is trading around 10,000 VND/share and the liquidity is very low, what do you think about this issue?
The price and liquidity of shares in the market are determined by supply and demand. I think that for DL1, it is currently the “planting” stage, not the “harvesting” stage, and with the medium and long-term potential as mentioned above, I am confident that the stock price will reflect the true value of the company. company and will be well received by the investing public.
