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Luks Group's principal business and assets are situated in Vietnam. Over 95% of the Group's revenue is generated from Vietnam and about 75% of the Group’s non-current assets are located in Vietnam. Our Group principally engaged in infrastructure and property related business in Vietnam, including Cement business, Property Investment business and Property Development business.


History and development

The Group first invested into the Vietnam's market since 1991. Before investing into Vietnam, the Group was also a pioneer investing into China since 1979 when China first opened for foreign investors. The Group was one of the first investors to set up a manufacturing base in China in 1982 to produce TV and TV accessories. Benefited from the dramatic growth of the Chinese economy since then, the Group was also growing fast and subsequently listed on the Stock Exchange of Hong Kong in 1987.

In early 90's, foreseeing an increasingly fierce competition in China market, particularly the electronics business, the management realized it was time for the Group to diversify its investments to different sectors and/or different territories. After years of studies, the management found that Vietnam was like an unexplored gem in South-East Asia, which had abundant resources and great potentials and most important at all in a number of aspects very much alike China in its early 1980's.


Why Vietnam?

An Asian country with an area of around 330,000 square kilometers, a long coastal line stretching over 1,600 km and a population close to a hundred million, which people might think of Japan? But if it has the youngest population in Asia, and a Gross national income per capita of only US$1,100 per year (year 2010), then this is nowhere but Vietnam.

Vietnam is itself a very rich country in terms of its resources. It possesses abundant natural resources including petroleum, coal and numerous mineral resources, significant hydro-electric power potentials, rich in agricultural products (being one of the world's top 3 exporters of rice and coffee) and marine products.

Having a population of over 87 million is not only a big market for various kinds of commerce and produces, but also provide abundant supply of labour. Indeed, labour cost is one of the lowest among Asian countries, which however does not mean that the quality is poor. Vietnamese workers are generally commented as diligent, hard-working, skilful and relatively well-educated (with a literacy rate of over 90% among its population). And probably due to the War and the baby boom after the War, Vietnam has the youngest population in Asia, with about 70% of the population between the age of 15 and 64, whereas the median age is only about 28.

The Socialist Republic of Vietnam, as seen from its name, has adopted a very similar political system and government structure to that of China. Over the past decades, since the first introduction of Doi Moi (the restructuring of, and new direction, for the economy) in 1986, the government has been very stable which is particularly apparent when comparing to some of the other South-East Asian countries.

Although Vietnam's economy experienced certain ups and downs over the past decades, the admission of Vietnam into the WTO in January 2007 was believed to be a catalyst for its accelerating economic growth and unveiling its underlying great potentials. China experienced remarkable growth since joining the WTO, there seems no reason that the road of Vietnam's economic growth would be turning back in coming future.


Why infrastructure and Property related business in Vietnam?

In developing countries like Vietnam, the management believes that when the economy begins to pick up, the first wave of growth shall be related to the infrastructure development. Thus, investing in infrastructure and property related business should be in an advantageous position to be benefited from the growth.


Strategy and goal

With the support of stable income and cash inflow from the Group's property investment business and its cement business, the management aims at looking for opportunities to invest in property development projects in Ho Chi Minh City. The Group targets on developing middle to high range apartments in order to satisfy the rising demand of a pool of local middle-class, which number is growing fast along with the economic growth.