VietNamNet Bridge - FDI capital flow to the real estate sector soared to $5.5 billion in the first half of 2018. Vietnam's real estate sector attracted $5.5 billion worth of FDI in the first half ò 2018. Real estate is one of the favorite investment fields of foreign investors. In 2017, FDI capital into the sector reached a 7-year high with $3 billion worth of committed capital. However, the record has been broken. The amount of registered capital in the first half of 2018 was equal to that of the entire 2017. Where is the money going? Singaporeans and South Koreans were the first foreign investors in Vietnam’s market, while investors from China and Japan have come in recent years. According to Rong Viet Securities, the foreign capital mostly flows into the high-end segment with projects developed in Hanoi and HCMC. As the land fund in the central area is diminishing, realtors have begun eyeing the suburbs. Chinese CFLD Group is developing the Nhon Trach … [Read more...] about Will flow of FDI capital lead to a real estate bubble?
Japanese real estate developers
Addressing the 10th Mekong-Japan Summit in Tokyo that opened Tuesday, Vietnamese Prime Minister Nguyen Xuan Phuc said the country would provide the best opportunities via new policies for Japanese firms to invest into Vietnam’s real estate and infrastructure. He highlighted the need for building houses for manual laborers and the poor; large-scale urban planning; applying new technologies and materials for construction projects. Japanese real estate firms expressed their desire to boost investments in Vietnam, more specifically, to support Vietnam’s urban planning by expanding urban areas and large-scale supermarkets to new cities and districts, as well as integrating public transport systems like trains or buses into urban settings. In another business discussion with Japanese financial firms on the same day, Phuc called for Japanese firms to become Vietnam’s strategic partners in the restructuring of state-owned firms and creating new, globally competitive … [Read more...] about Vietnam wants Japan to boost real estate, infrastructure investments
At the talk on investment in real estate and infrastructure development in Vietnam, PM Phuc highly valued Japan’s urban planning and construction, and applauded Japanese firms’ investment in real estate and infrastructure development in Vietnam. The Vietnamese Government will create the most favourable conditions for Japanese companies, including issuing regulations on investment in the form of public-private partnership and devise easier financial credit policies for investors in the field, he said. PM Phuc suggested Japanese firms give priority to both investing in real estate and developing infrastructure, especially building social houses for workers and poor people, and modern and smart urban areas. He also called Japanese enterprises to do well the planning work to optimally use the land fund, as well as advance technologies and materials for high-quality infrastructure projects. For their part, Japanese real estate firms said that Vietnam’s market is witnessing … [Read more...] about PM talks with Japanese real estate, financial firms
VietNamNet Bridge - More foreign invested real estate projects have been registered recently, while more M&A deals in the sector have also been reported. Vietnam's real estate market is a gold mine for foreign investors In late July, the 100 percent foreign owned real estate developer Alpha King introduced three real estate projects in district 1, HCMC, including the high-end serviced apartments at No 2 Ton Duc Thang, the A-class office building Alpha Town at No 289 Tran Hung Dao and Alpha City complex at No 87 Cong Quynh. Alpha King’s CEO Jimmy Chan said it will takes two to three years to build the projects. Japanese Hinokiya Group has decided to cooperate with Vietnam’s TWG for its first investment project in Vietnam. According to Le Cao Minh, CEO of TWG, the two sides would set up a 50/50 joint venture to develop a Japanese style housing project, covering an area of 9.7 hectares. FIA reported that the FDI into the real estate sector (housing, industrial … [Read more...] about Vietnam’s real estate market a gold mine for foreign investors
Recent moves to restrict credit for real estate are having an effect. One day in July, Ms. Nguyen Mai Phuong, a 45-year-old businesswoman living in Ho Chi Minh City’s Binh Thanh district, visited a few banks to seek a loan of VND2.5 billion ($110,000) to purchase land. She was told of the new interest rates on home loans, ranging from 8-10 per cent per annum for the first year, depending on the customer’s objectives, and then 11-12 per cent. “I’m re-considering my plans, as these rates are much higher than a few months ago,” she said. Most local real estate developers have also been restricted in approaching capital resources over the last year due to the State Bank of Vietnam (SBV)’s moves to tighten capital flows into the local property market by raising the credit risk on real estate loans and reducing the proportion of short-term capital to be used for medium- and long-term loans by commercial banks, due to concerns about bad debts amid the … [Read more...] about Restrictions on real estate credit bearing fruit