Instead of making direct investments, Japanese enterprises in recent months started setting a foothold in the Vietnamese real estate sector via co-operating with domestic developers.

In its latest move, on November 8, Nam Long Investment JSC (Nam Long) and two Japanese firms - Hankyu Realty Co., Ltd. and Nishi Nippon Railroad Co., Ltd., signed an agreement to develop the Kikuyu Residence project located in District 9 of Ho Chi Minh City. 

The project has the total investment value of VND630 billion ($28.17 million). Accordingly, Nam Long will contribute 50 per cent of the capital, while the rest will be equally divided by the two Japanese partners.

The project includes 100 villas and 234 apartments as well as other infrastructure, including swimming pools, an amusement park, clubhouses, and a square. The construction is expected to last for two years.

In another move, Le Quoc Duy, chairman of the board of directors of Tien Phat Real Estate Investment Corporation (Tien Phat), told Doanhnhansaigon that the company will establish a joint venture with Japanese developer Pressance Corporation to develop residential projects in Ho Chi Minh City. 

According to the newest plan, the two parties will buy an available unfinished project and continue the construction with the total investment capital of VND1.2 trillion ($53.66 million).

Earlier in September, Vietnam-based real estate investment fund Indochina Capital and Japanese contractor and real estate developer Kajima Corporation signed an agreement to establish a $1 billion joint venture named Indochina Kajima Development (ICC-Kajima) to invest in the Vietnamese real estate sector.

Indochina Capital and Kajima Corporation are equal partners in the new venture. The $1 billion investment capital will be contributed over a period of 10 years.

The joint venture will initially focus on the residential and hospitality segments in Hanoi, Ho Chi Minh City, and Danang. It will primarily focus on providing permanent and temporary accommodation in the form of hospitality-serviced apartment-hotels and residences for sale.

CEO of Indochina Capital Peter Ryder said that the Vietnamese real estate sector has great potential due to the fast economic growth, young population, and the increasing demand for accommodation. The joint venture plans to develop three projects with a total investment capital of $100 million within the next twelve months.

In late July, Japanese conglomerate Mitsubishi Corporation announced that it will work with Vietnamese partner BITEXCO to develop part of The Manor Central Park, a mixed-use development project in Hanoi.

During the first phase of cooperation, Mitsubishi and BITEXCO will establish a joint venture to develop 240 low-rise housing units and two high-rise condominiums (comprising of 1,036 apartment units), out of the total 1,000 low-rise units and 7,700 apartments in 17 high-rise buildings.

The joint venture will be divided on a 45-55 basis, with the majority held by BITEXCO. The two sides will put forward a total investment capital of about ¥30 billion ($284 million) for the first phase.

Another outstanding move is the co-operation between Japanese Creed Group, a real estate firm specialising in principal investment and property development, and An Gia Real Estate Investment and Development JSC.

Notably, in late July, the two parties signed a comprehensive investment co-operation contract. Accordingly, Creed Group will spend $200 million on purchasing An Gia shares and advance loans to the firm to buy housing projects with the aim of building Japanese-quality houses in Ho Chi Minh City.

Creed Group will also transfer technology, experience and opportunities in real estate development to An Gia.

VIR