International firms are increasingly becoming a park of Vietnam’s real estate sector.
The hype for Vietnam’s property market continues. Jones Lang LaSalle believe that there will be increased activity this year due to a number of high profile mergers and acquisitions. Injecting more money into the residential, commercial, hotel and industrial sectors across the country.
Already this year the market has witnessed a number of significant mergers and acquisitions. Companies such as Keppel Land and Hong Kong Land are working alongside local companies Southern Waterborne Transport Corporation and Ho Chi Minh City Infrastructure Investment Joint Stock Company to develop real estate.
Additionally with the increase in tourism in the country, there are many investors keen to profit from this growth. Danang has already been earmarked as a property hotspot. As a result Indochina Capital teamed up with Japanese firm Kajima to focus on residential, hotels and resorts in this flourishing tourist location as well as Hanoi and Ho Chi Minh City. The Japanese investors plan to pump USD 1 billion over the next decade.
Vietnam’s increase in manufacturing is contributing to a healthy industrial market. Foreign investors are keen to get in on the action to develop this sector even further. New industrial sites are in the pipeline at the hands of the Chinese.
These events are helping to signify a new era for Vietnam’s property market. They illustrate the confidence in the market. Plus show how overseas investors are prepared to take on the risks, if any, when investing in Vietnam. The appeal of the country is being spurred on by a number of factors: the economic forecast looks good. There is increased political stability and the Vietnamese dong is stable as well.
Investors are increasingly looking to diversify their portfolios too thanks to wobbles in the west. Brexit and the Trump administration are leading some investors to look elsewhere outside of these safe haven destinations. Top this with some impressive yields on offer, it is no wonder that international firms are looking to work alongside local ones to take on and profit from Vietnam’s property market.
