American investor and CEO of Indochina Capital, Peter Ryder How have you assessed the contribution of the private economic sector, especially foreign direct investment (FDI), to Vietnam’s real estate market? An interesting trend in Vietnam, which I detect, is that the real estate development has long been dominated by the private sector. This is unlike many other industries in which the government still has very large involvement. If you look at the history of real estate development over the past 25 years, we can see that Vietnam has really opened up in the post-doi moi era. In the immediate wake of this, major developers were foreign investors who typically set up joint ventures with domestic authorities. During this time, Indochina Capital began two joint ventures, one with Danang Tourism to develop the Furama Resort, and another with the Vietnam Fatherland Front and Hongkong Land to develop an office building at 63 Ly Thai To in Hanoi. In the last decade, the market … [Read more...] about Real estate at the heart of economy
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Prime Minister Nguyen Xuan Phuc met with the CEO of the Dubai Investment Group (United Arab Emirates - UAE) Mohammed Ibrahim Al Shaibani on March 25 at the headquarters of the government. Photo by Chinhphu.vn Speaking at the meeting, the Prime Minister affirmed that Vietnam attaches great importance to good friendship and multifaceted cooperation with the UAE, especially in economic terms. The UAE is now Vietnam’s largest trading partner in the Middle East, with two-way trade turnover of about $6 billion per year. Prime Minister Phuc believes Mr. Shaibani’s visit will make an important contribution to boosting the two countries’ economic, trade, and investment relations. He appreciated that Mr. Shaibani acted on his invitation to come and explore business opportunities, exactly two months after meeting in Davos. The Prime Minister hopes that after the visit, Mr. Shaibani will direct the building of long-term investment plans in Vietnam. After the visit to … [Read more...] about PM meets with Dubai Investment Group CEO
Green living is booming in Bangkok's Lad Prao district The new darling of Bangkok living In the past few years, demand for green and convenient living has risen dramatically in Bangkok, as residents become more sophisticated in their requirements for a home. Among all 50 districts of Thailand’s capital city, Lad Prao emerged as an area that can meet the strict needs of modern living, thanks to its strategic location and wide range of amenities. A quick look at Lad Prao shows that the 21 square kilometre district is located near Don Mueang International Airport, the hub for various Thai airlines flying across Southeast Asia. The district is also well-connected to other areas of Bangkok, including the central business district thanks to Phahonyothin Station, which is part of the mass-rapid transit (MRT) system. Another option is the Lat Prao intersection station, where passengers can board the BTS skytrain to central areas and shopping junctions. Adding to the ease of transport … [Read more...] about Northeast Bangkok suburb rises as real estate magnet
The growth of the Vietnamese automobile industry has had a positive impact on industrial real estate. By Le Trong Hieu Director, Advisory and Transaction Services, CBRE Vietnam In general, Southeast Asian sectors have achieved substantial growth thanks to dedicated support along with the domestic protectionist policies of its respective governments. In Vietnam, rapid changes in regulations and trade have had a significant impact on the market. From the real estate perspective, the most important aspect for market shift and macroeconomic conditions is the increased demand and expansion of industrial production. In fact, there have been major industrial and commercial lease deals related to the sector over the past three years with the anticipated demand for lease extensions. High occupancy and rising rental rates are challenges for expanding production. However, this could also be an opportunity for real estate developers to note the increasing demand for production … [Read more...] about Vietnam’s auto industry stimulating real estate
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?