Vietnam’s star is rising in the Land of the Rising Sun
Image credit: Vietnamplus.vn
Lured by an upwardly mobile and young populace, investors from Japan are making inroads into the Vietnamese real estate market.
Sanyo Homes has become the latest in a spate of Japanese property firms striking partnerships with Vietnamese enterprises for residential projects in Ho Chi Minh City. The company is reportedly pouring USD25 million into Ascent Lakeside, an upscale condominium in District 7.
According to Thanh Nien News, Sanyo Homes chairman Yasusuke Tanaka noted this will be Sanyo Homes’ official debut in the country. Tien Phat Corp will be the Osaka-based company’s local counterpart.
Sanyo Homes’ development comes on the heels of similar announcements by Creed Group, Hankyu Realty Co Ltd, and Nishi-Nippon Railroad Co earlier this year.
“The stable economic growth and increasing savings among residents would be an opportunity for the market to receive a big investment from home buyers and investors,” Nguyen Duc Thanh, director of the Viet Nam Institute for Economic and Policy Research, told the Vietnam News Agency.
More: Who are the year’s best developers and developments in Vietnam?
Creed Group managing director Toshihiko Muneyoshi described demand in Vietnam as “huge” and compared its young market to that of Japan 30 years ago.
With Phat Dat Corp and An Gia Investment, Creed Group revealed in March plans for River City, a USD500 million mixed-use development which will encompass 8,000 apartments in District 7.
Meanwhile, Nishi-Nippon Railroad and Hankyu Realty are involved in Nam Long Investment Corp’s Fuji Residence, an individual housing development in District 9.
Thanh expects an influx of FDI once the United States government ratifies its Trans-Pacific Partnership with the country’s government. US President Barack Obama is in Vietnam to talk about the sweeping free trade deal.
Domestic concerns about a prohibitive tax policy have tempered such a rosy outlook, however. Nguyen Tran Nam, chairman of the Vietnam National Real Estate Association, recently railed against the “unfair and unreasonable” policy that outlaws the offsetting of losses against gains in a property business.
Vietnam drew USD239.78 million in FDI for real estate in the first quarter, according to the Ministry of Planning and Investment’s Foreign Investment Agency.
Rising foreign investor interest in Vietnam will be one of the topics to be discussed at the first-ever Property Report Congress Vietnam. The whole day conference on 10 June 2016 at the InterContinental Asiana Saigon will cover regional market update, building design, online real estate marketing, and formation of joint ventures.
Read next: 5 reasons why you should attend the Property Report Congress
Source : property-report.com
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