Saturday,  Mar 28, 2020,16:48 (GMT+7) 0 0
Local realty market attractive to foreign investors
By Le Hoang
Friday,  Jan 17, 2020,19:20 (GMT+7)

Local realty market attractive to foreign investors

By Le Hoang

Delegates at a press briefing to introduce the Vietnam Real Estate M&A Conference. Local property firms are attractive to foreign investors - PHOTO: HUNG LE

HCMC - Vietnam is seen as one of Southeast Asia’s most attractive real estate markets for foreign investors, so local property developers can easily seek partners through merger and acquisition (M&A) deals, experts told a press briefing held on January 16 to introduce the Vietnam Real Estate M&A Conference (VINA - M&A).

At the press conference, Akihiko Iwatani, senior manager and chief representative of the Japanese property developer Haseko Corporation in Hanoi, stated that Vietnam was considered Southeast Asia’s most attractive market to Japanese investors and foreign firms in general.

Most investors have been keen on developing apartment building projects in Hanoi and HCMC, while others have focused on the office and hotel segments, Akihiko noted.

Foreign investors found it difficult to invest in the real estate market in Indonesia, while the Singaporean market is small. In addition, the Malaysian property market has developed steadily.

In Vietnam, which has a population of nearly 100 million people with a significant proportion of young people, steady economic growth and fast urbanization, the demand for houses and apartments is high, creating multiple opportunities for foreign investors.

Dr Phan Huu Thang, former head of the Foreign Investment Agency, under the Ministry of Planning and Investment, shared this view, pointing out that all five segments of Vietnam’s real estate sector---houses, offices, industrial parks, commercial centers, and resorts and hotels---are attractive to foreign investors, thanks to the country’s foreign investment attraction, business development and high number of tourist arrivals.

Most foreign investors in the local real estate market are from South Korea, Japan, Singapore and Hong Kong, Thang added.

According to Than Thanh Vu, head of the company that organized VINA-M&A 2020, investors from more countries and territories have shown interest in the local property market, such as those from Japan, South Korea, Singapore, Malaysia, Hong Kong, Taiwan, China, the United States, Australia and the European Union.

Although the event is more than two months away, more than 50 investors have registered to participate in the conference and the number is expected to grow further.

The event organizer hires entrepreneurs and experts in private business who understand the demands of enterprises and foreign investors, capital-related issues and the local market. The event will help connect enterprises and investment funds keen on investing in the Vietnamese market with domestic firms seeking partners through M&A deals, Vu said.

Akihiko from Haseko Corporation also agreed that the conference will attract much attention from foreign investors, especially those from Japan.

Luu Thi Thanh Mau, CEO of Phuc Khang Corporation, a large property firm in Vietnam, remarked that M&A deals are needed to increase the market’s transparency and attract capital flows to the sector. Vietnamese enterprises with large land funds and approved projects will have significant opportunities to call for foreign capital.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.