A “click” in Hanoi to build villas and resorts in Ca Mau, Phu Quoc
Revolution 4.0 promotes a breakthrough for the entire real estate market. Along with that, smart applications are introduced into the real estate sector as an inevitable trend to stimulate real estate growth and create attractiveness for the market through real estate development and investment model’s new products.
In the world, investment in proptech (technology in real estate) has exploded in recent years. According to a study by EY and CREtech, 75.2 billion USD in venture capital has been invested into the Proptech market since 2015, and almost a third of that was done in 2019.
According to Mr. Chu Quang Thai – Digital asset project development expert, in charge of the South office of the National Startup Support Center – The Ministry of Science and Technology, the legal complexity, the lack of transparency along the uniqueness of the position are considered three of the many characteristics that make this field both difficult to transform, so the digital transformation is necessary as a vital solution.
Mr. Thai said that he had witnessed project bidding packages worth about 8 billion VND but needed a three-wheeler carrying documents. Each bid has up to 100 signatures, and if there is an error, the re-signing alone can take up to a month. According to the statistics of Global Property Guide, the paperwork, legal, and supply chain of the construction, real estate, and industrial sectors alone account for 25-30% of the cost in the investment structure.
“How a person in Hanoi build a villa, a resort in Ca Mau, Phu Quoc… if they do not understand anything. They certainly want to both manage the project and optimize costs, but they do not have management tools, so sometimes they have to let it go,” said Mr. Thai. That’s not to mention the fact that, if encountering “fake” contractors, the investor may be deceived, handing over works that do not guarantee the quality compared to the original commitment. These stories are seen as problems facing the real estate, construction, and industrial sectors.
Since then, Mr. Chu Quang Thai affirmed: “It is important to streamline this field and then digitize it. Then not only the management costs are saved, but the management of a property from the time of an empty piece of land until the construction is completed and put into use and operation and maintenance can also be done by just click, that is the beginning of a “machine business” model in the trend of digital economy development.
Vietnam is certainly not an exception to this trend. The Proptech field has also witnessed many breakthrough technology projects in recent years.
According to Mr. Truong Thanh – CEO and founder of XIXO, the real estate industry needs a common platform to connect the team with the general contractor, between enterprises producing and supplying materials, equipment, and products, consulting with real estate businesses, industrial construction, between connecting buyers and sellers.
“XIXO will be a working platform where all components of the land-attached asset ecosystem can connect, transact and transmit value to each other through smart contracts,” Mr. Thanh said.
This is also the reason XIXO was established. Accordingly, the XIXO Platform helps users easily conduct business, build, pay for transactions, control related activities anytime and anywhere through the XIXO platform with an internet connection. From that, ensure appropriate price criteria, authentic goods, convenience, timeliness, and safety. Besides, the founder of this startup also said that blockchain technology with transparency and security realizes the O2O model (online to offline), meaning that customers only need an idea and budget. The rest will be done by chothicong.com. Thus, customers in Hanoi want to build a house in Phu Quoc, instead of making hundreds of phone calls back and forth and then leaving it to the contractor; now, they just need a computer and make the selection, search for contractors, construction materials, design, construction… and receive daily reports on the system.
“Blockchain with smart contracts creates payment protocols for each process from designing, choosing materials, hiring custodians…. The data is recorded, meets the traceability requirements, manages the quality of the works according to the progress and maintenance later. If the previous work was usually required to pay 30-50% due to the complexity of the paperwork, now both parties make online transactions, and the payment can only be made when there is a confirmation of completion.” Representative of XIXO added. However, Mr. Chu Quang Thai also said that this has happened in other models such as Uber or Grab, AirBnB. It’s the pioneers’ job to consistently build the game in the right direction and prove it works. At that time, businesses, whether they want to or not, have to transform themselves.
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