VietNamNet Bridge - Instead of pouring money directly into projects, foreign investors now are joining well-known Vietnamese real estate developers to develop projects.


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Thailand’s Hemaraj Land & Development and Vietnam’s Cienco 4 have confirmed a plan to set up a joint venture to develop a 3,200 hectare IZ in Nghe An province, capitalized at $1 billion.

Instead of pouring money directly into projects, foreign investors now are joining well-known Vietnamese real estate developers to develop projects.

Japanese investors have also made huge investments in Vietnam. Nishi Nippon and Hankyu have joined with Nam Long to build Mizuki Park, a residential quarter worth $351 million covering an area of 26 hectares in Binh Chanh district. Aeon Mall, a retailer, has teamed up with BIM to develop Aeon’s second shopping mall in Hanoi capitalized at $200 million.

On September 12, Key Sicav Sif, an international investment fund from Luxembourg presented EZ Land, specializing in developing real estate projects, before the public.

According to the Foreign Investment Agency, the real estate sector attracted $766.7 million worth of FDI with 49 new projects worth $30.12 million and 17 expanded projects. In addition, foreign investors registered to buy a $344.97 million stake in real estate projects.

Jabcop Hoyeon Won, CEO of Locus Capital Partner, said he plans a long term investment in Vietnam by cooperating with Vietnamese enterprises.

Oliver Brazier, managing director of EZLand Vietnam, said the company, together with the Vietnamese partner, has drawn up a plan to build 1,000-1,500 apartments each year in the next 5-8 years. Its first project will be HausNeo, in district 9 in HCMC. 

An analyst commented that it is the right time for foreign investors to contribute capital to real estate development projects. There are thousands of projects facing suspension because of lack of capital. The figure is 500 in HCMC.

However, it is not easy to find suitable projects. Foreign investors want ‘clean land’ and projects with good development strategies. However, there are few such projects.

Alex Crane, CEO of Cushman & Wakefield Vietnam, said the company has received many orders from foreign investors, especially from the US, to introduce real estate projects. Twenty-seven successful transactions have been made this year, worth $900 million.

According to the HCMC Real Estate Association, some powerful Vietnamese realtors, realizing the high demand for projects, have spent big money to buy ‘clean land’ to resell to other investors. This has led to more mergers and acquisitions in the market.


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Chi Mai