Foreign Investment into Vietnam’s Real Estate Expected to Surge, Japanese Investor Said

Diep Nguyen

16:32 23/05/2019

BizLIVE -

From the beginning of 2019 to April 20th, total newly registered, additional and contributing capital of foreign investors in real estate was USD 1.1 billion, an increase of 36,8% compared to 2018, ranks second only after the machinery production.

Foreign Investment into Vietnam’s Real Estate Expected to Surge, Japanese Investor Said
In the past week, one big real estate company in Vietnam signed the cooperation agreement with one Japanese company which has long term history of operation. Accordingly, the Japanese company will pour huge sum of investment money into the Vietnamese counterpart. This cooperation sets the trend for foreign investors invest aggressively into Vietnam’s real estate market.
Ministry of Planning & Investment just released a report about foreign investment in Vietnam. Accordingly, from the beginning of 2019 to April 20th, total newly registered, additional and contributing capital of foreign investors in real estate was USD 1.1 billion, an increase of 36,8% compared to 2018, ranks second only after the machinery production.
In Ho Chi Minh city, the foreign investment capital into real estate was USD 164.5 million, an increase of 139% year-on-year. Just in the first four months of 2019, total foreign investment into real estate in the whole country in general and Ho Chi Minh city in particular was highest since 2015.
In 3 recent years, foreign investors have change ways of investment into Vietnam. They not just invest money in new projects, increase capital to existing projects but also buy more stakes.
The trend of buying stakes has become more popular since the beginning of 2019. In the first 4 months of 2019, total foreign capital into real estate through contributing funds, buying stakes was USD 564 million, an increase of 131% compared to 2018 and tripled from 2017.
So far, there have been many predictions that there will be more foreign money into real estate because of better trust in the potential of Vietnam’s economy and the trend of mulnational companies switching operation bases into Vietnam. Additionally, there will be more cooperation through buying stakes because it helps foreign investors in getting quick access with clean land capacity to develop projects.
In one recent conference, representative of Creed Group, Yamaguchi Masakazu, predicted: “The demand for real estate in Vietnam still very high, especially the affordable residential housing”. Apart from that, Masakazu showed trust in the potential of Vietnam’s economy, thanks to that, the demand for housing, tourism of Vietnamse will surge.

DIEP NGUYEN

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