VIETNAM – Property sector ranked second among business categories which attracted Foreign Direct Investment (FDI) in the first six months of the year, according to Foreign Investment Agency (FIA). The Vietnam real estate sector had twenty-five licensed projects during that time brought in a total investment capital of $604.8 million. This accounted for 5.3 percent of the whole FDI registered capital.
Midtown, developed by a businessman in Cayman Islands, has been identified as the most noteworthy project with registered capital of $225.6 million. It was the biggest project licensed in the past six months.
In the recent months, merger and acquisitions deals in the field have been announced.
On the other hand, Keppel Land signed a provisional investment contract to acquire 40 percent of stakes in Empire City. Said company would allot $1.2 billion to construct offices, retail area, complex of apartments and a 86-storey tower in Thu Thiem new urban area located at HCM city.
Creed Group of Japan took part in the capital for 11.25-hectare River City project in District 7. Twelve apartment blocks with shops, offices and apartments would comprise the VND12 trillion worth of project.
Meanwhile, Sakkara Group’s sudsidiary Australian Sapphire JSC, announced that they seek for medium and large scale apartment, office and housing projects in Vietnam.
Singapore has flowed investments in the Vietnam real estate. They have 81 projects with with a total capital of $10.9 billion or 30 percent of Singapore’s total investments in Vietnam.
Reasons for Singaporean investments are Vietnam real estate and tourist attractions, noted by Deputy chair of VCCI Doan Duy Khuong.
Keppel Land is considered as a pioneering investor in Vietnam while CapitalLand is owned by investors of the second generation who landed to Vietnam on early nineties. Mapletree and Semcorp are other well-known Singaporean investors in Vietnam.
As per Singaporean Real Estate Brokerage chairman Jeff Foo, the investors’ momentum was distracted due to the cool-down policy implemented by the government. As a result, Singaporean investors tried to find opportunities in other market such as Vietnam real estate.