Asian real estate investment wave heads for Vietnam
Asian real estate investment wave heads for Vietnam
A lot of Asian investors are pouring their capital into the Vietnamese real estate market, despite the short term challenges in the market.
The most noteworthy thing of the foreign direct investment (FDI) picture in Vietnam in the first eight months of the year was that real estate came second in the list of the business fields most attractive to investors.
The total investment capital of the projects in the field, including the capital of newly registered and expanded projects, reached 1.726 billion dollars.
As such, after the last many consecutive quarters of decline, the FDI in the real estate sector has bounced back, which was really a big surprise in the context of the gloomy real estate market.
Of the 10 real estate FDI projects licensed so far this year, the Tokyu Binh Duong Garden City of the Japanese Tokyu Group alone has the investment capital of 1.2 billion dollars.
Another investor from Japan – Shimizu Group – kicked off its Hanssip Industrial Zone project, capitalized at one billion dollars, in March 2012. These are the two biggest ever real estate FDI projects developed by Japanese investors, which have helped generate the so called “Japanese hallmark in Vietnam.”
The investors from other Asian countries are also eyeing the Vietnamese market. The Gulf Times has reported that Qatar is moving ahead with a series of its investment projects in Vietnam which have the total investment capital of up to four billion dollars. The projects are mostly in the fields of infrastructure development, trade, accommodation, hotels, to be developed through the cooperation with Qatari Diar Real Estate Company.
Dau tu has reported that Mapletree Group from Singapore has started the construction of SC VivoCity, a shopping mall, in the Saigon South Palace complex in district 7 of HCM City. Mapletree has committed to inject one billion dollars in Vietnam, while it is considering setting up an investment fund, in charge of raising funds for the property projects in Vietnam.
SP Setia Bhd Group from Malaysia is now developing two projects in the southern province of Binh Duong, while considering the opportunities to develop projects in the two biggest cities of Hanoi and HCM City.
Dau tu has quoted Tran Nhu Trung, Deputy Director of Savills Hanoi as saying that a lot of foreign investors from Japan, South Korea, Singapore and Malaysia have contacted Savills to ask information about the business opportunities in Vietnam.
Tran Tan Thien, Chair of Song Phat Company which is the consultant in many investment projects has also noted that Asian investors, especially Japanese ones, are eyeing the Vietnamese market.
Thien said Asian investors are interested in the Vietnamese real estate market because of the short geographical distance, cultural similarities and good diplomatic relationships. Meanwhile, the widespread crisis in Europe has prompted investors to re-direct to Asia, including Vietnam.
The success stories of many foreign invested real estate projects in Vietnam, such as Keangnam Landmark, Indochina Plaza, Mulberry Lane, Gamuda City and Splendora have also given more reasons to foreign investors to inject their money in the market.
Nevertheless, some other foreign invested projects have bogged down in Vietnam. These include the Booyoung residential quarter project in Mo Lao urban area in Hanoi, the Times Square project on Pham Hung Road in Hanoi, the Park City in Hanoi, the Vietnam Financial center in HCM City, the International University Urban Area, the Da Phuoc urban area in Da Nang City and Ha Long Star in Quang Ninh province
vietnamnet
