Computational Efficiency of Latin Hypercube Sampling in Financial Risk Simulation: A Comparative Study

  • Authors

    https://doi.org/10.14419/vq93sy72

    Received date: June 2, 2025

    Accepted date: July 27, 2025

    Published date: August 14, 2025

  • Monte Carlo; Latin Hypercube; Financial Risk Analysis; Real Estate Market Vietnam; Sales Strategy; Sensitivity Analysis

  • Abstract

    This study examines the financial risks of a condominium project in Long Xuyen, Vietnam, a promising yet uncertain real estate market. We compare the efficacy of Monte Carlo and Latin Hypercube Sampling in assessing the impact of sales strategies on financial performance, utilizing metrics such as Net Present Value (NPV) and Internal Rate of Return (IRR). Sensitivity analysis identifies key profitability drivers, ‎focusing on initial capital and loan interest rates. The findings highlight Latin Hypercube Sampling’s superior computational efficiency and stability, emphasizing the role of sales strategies in ensuring liquidity and optimizing financial outcomes. Practical recommendations include ‎increasing contingency costs and adopting the Lotus certification building standard to empower investors in risk management and sustainable ‎development. This research offers substantial theoretical and practical contributions, enriching financial risk analysis and delivering value to ‎Vietnam’s real estate sector‎.

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    Thai-Phuong , T. ., Phuong, N. P.-., & Nguyen-Son, L. . (2025). Computational Efficiency of Latin Hypercube Sampling in Financial Risk Simulation: A Comparative Study. International Journal of Basic and Applied Sciences, 14(4), 412-424. https://doi.org/10.14419/vq93sy72