Vietnamese property most attractive in Southeast Asia: Japanese exec
The real estate market in Vietnam is the most attractive in Southeast Asia and is poised to become the number one investment channel, said Yoshinori Nakata, director of Japan’s Global Link Cooperative.
Nakata told the Vietnam News Agency on the sidelines of the Vietnam-based TMS Group’s investment promotion workshop in Osaka, Japan’s second largest metropolitan area, on April 9 that it is not just Vietnam’s real estate market attracting investors, as markets in certain Asian countries like Cambodia and Indonesia, also have bright prospects.
However, he believed that Vietnam is the most attractive among these countries because of its safe and stable investment environment.
Some 10 years ago, he started doing business in the Southeast Asian nation, which is now home to many high-rise buildings.
Sharing the same view, Kako Sasai, head of the business information division of the Japan External Trade Organization (JETRO), predicted that foreign investment in Vietnam’s realty sector would increase in the years ahead.
Japan’s investment in Vietnam rose significantly between 2016 and 2018, Sasai noted. The number of Japanese firms investing here in the country has surged, resulting in the increasing demand for offices and houses.
Many Japanese investors in Vietnam have said that the country has great economic potential, which can bring decent profits, she said.
Once major projects in Vietnam’s north-central region and some key highway projects are put into operation, they will act as a catalyst for Japanese investors, she added.
A recent survey by JETRO indicated that Japan’s direct investment in Vietnam has increased in terms of the number of businesses and their capital pledges. As many as 70% of Japanese businesses plan to expand operations in Vietnam, while some 88% expect their revenue in the market to grow in the future.
The Vietnamese Government and enterprises are paying greater attention to encouraging more overseas firms to set up shop in Vietnam, beyond the real estate sector, according to Sasai.
Toru Tomita, general director of the Osaka-based O.M.Net cooperative association, described Vietnam as a young-population nation with an abundant workforce. He also forecast that more Japanese businesses would come to the country for business and investment.
The investment promotion workshop in Osaka was part of the TMS Group’s activities to introduce Vietnam’s investment environment and seek potential partners for the group’s property projects in Vietnam.
Vietnamese Consul General in Osaka Vu Tuan Hai confirmed that the Vietnamese Government is committed to creating an open, fair and favorable business environment for Japanese investors.
The Vietnamese official pledged to offer support to Japanese businesses in researching, preparing and executing their business and investment plans in Vietnam.
TMS Group has been cooperating with its Japanese partners over the past 15 years, serving as a bridge to connect Vietnamese businesses with Japanese partners in their strongest fields such as real estate, manpower supply, education and training, trade, services, healthcare and high-tech agriculture.