Japanese Sumitomo last July signed an MOU with Thanh Hoa province on the development of an Industrial Zone (IZ) with total area of 650 hectares, capitalized at $400 million. The investor is also considering a 300 hectare IZ in Nam Dinh.

Also in July, Suntory Pepsico got the nod to build a new factory in Long An with investment capital of $185 million, while Hyosung is planning to invest $1 billion in a carbon fiber manufacturing factory in Vung Tau.

In late August, three new projects in the Vietnam-Singapore Industrial Park (VSIP) kicked off, two projects obtained approval, and 12 agreements on cooperation and development were signed. 

A joint venture between Lineage Logistics and SK Logistics was announced August 11 which will expand cold storage systems in Vietnam.

In the third quarter, SkyWorld Development Berhad from Malaysia bought a land plot of 2,060 sqm in District 8, HCM City from Thuan Thanh JSC at $14.3 million to develop a housing project.

Meanwhile, Gamuda Berhad paid $315.8 million to acquire 3.68 hectares of land in Thu Duc City from Tam Luc JSC to develop a multi-use project.

Singaporean Keppel has acquired 65 percent of shares of a company which holds commercial real estate assets in Hanoi worth $50.4 million.

Many M&A deals have been made recently among Vietnamese developers. First Real Land has acquired 22 percent of shares of Bach Dang Trade and Service, the owner of a land plot of 6,879 sq m in Da Nang at $8.2 million.

Saigonres followed procedures to take over 90 percent of shares of Duc Nhi JSC, becoming the owner of a land plot of 7,700 sq m in Tan Phu district in HCM City.

The real estate market in Asia Pacific is still facing challenges caused by interest rate hikes and global uncertainties, which has led to a significant decline. However, the deals show that investors’ confidence has been restored.

Neil MacGregor of Savills Vietnam said with the shortage of apartments, investors can exploit strong demand to develop new projects, especially if they target middle-income earners who want to buy apartments.

Can Van Luc, chief economist of BIDV, said the real estate market would become better with a big push slated for the first quarter in 2024. He said interest rates have been decreasing and many laws are expected to be ratified in the sixth National Assembly session.

Hong Khanh