M&A consistent in real estate sector, illustration photo According to experts, Vietnam is now one of the most attractive foreign investment destinations, with statistics showing that the real estate sector is one of the five largest recipients of foreign capital. Merger and acquisition (M&A) transactions in the real estate market mostly focus on residential property, offices for lease, retail, hotels, and industrial zones. Domestic investors are expanding investment portfolios with land plots that can be developed in co-operation with international developers into large-scale projects. According to Nguyen Huu Quang, deputy general director of Netland, among the five largest investors in the Vietnamese real estate sector including South Korea, Japan, Singapore, China, and Hong Kong, Japan stands out with its large number of investors and high capital disbursed. “Japanese investors are looking for projects where they can co-operate with domestic investors, especially … [Read more...] about M&A consistent in real estate sector
Real estate foreign investors
An apartment building in the Nam Trung Yen Urban Area in Cau Giay District's Trung Hoa Commune. — VNS Photo Doan Tung The HCM Real Estate Association (HoREA) has suggested the State Bank of Viet Nam (SBV) extend the application of regulations on banks’ maximum ratio of short-term funds used for medium- and long-term loans until the end of 2020. The HoREA also proposed the rate should be reduced to 37 per cent starting from January 1, 2021; 34 per cent from July 1, 2021; and 30 per cent from July 1, 2022. The moves were announced after the SBV released a draft circular stipulating that the maximum ratio of short-term funds used for medium- and long-term loans at banks would be reduced from the current 45 per cent to 40 per cent from 2019 to June 30, 2020. Under the SBV’s draft circular, the rates of 37 per cent and 30 per cent will be applied from July 1, 2020 and July 1, 2021, respectively. According to the HoREA, the amendments will damage the real estate market as … [Read more...] about HoREA offers proposals to help real estate firms access long-term bank loans
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?
VietNamNet Bridge - The strong flow of FDI is expected to trigger a new investment wave into the industrial real estate sector. The FDI flow is expected to trigger a new wave of investment into industrial real estate sector According to JLL, the total supply of industrial land for leasing in southern industrial zones (IZs) had reached 37,030 hectares by the end of June. Not all IZs can catch the eyes of manufacturers. Foreign investors only choose IZs with good infrastructure, especially electricity and water supply. Besides the cheap labor cost in Vietnam, which is half of China’s, the reasonable rent is also attracts foreign investors. RELATED NEWS Vietnam plans to prioritize ecological IZ development Industrial zones getting hot again Thanh Lich … [Read more...] about Industrial real estate sector booms
(VEN) - In the first eight months of 2018, Ho Chi Minh City (HCMC) attracted US$5.18 billion of foreign direct investment (FDI), maintaining its position as the country’s top investment draw. The Saigon High Tech Park has attracted investment from major groups worldwide Foreign investors In the first eight months, the city granted licenses for 640 FDI projects with total capital of US$558.63 million, a 22.2 percent increase in the number of projects and equivalent to 70 percent of total project capital licensed in the same period last year. Processing and manufacturing industries were most attractive to foreign investors, with 24.5 percent of FDI concentrated in these sectors. The real estate sector ranked second with 23.1 percent, followed by wholesale, retail and auto repair, motorcycles and other types of motorized vehicles (22.4 percent); technical activities, science and technology (14.5 percent); information and communications (six percent). Business investment … [Read more...] about HCMC remains top draw for foreign investors