Figures released from Vingroup forecast a very healthy property market.
Real estate is being taken seriously in Vietnam. In January of this year, the industry accounted for 24 percent of foreign direct investment as reported by the General Statistics Office of Vietnam. And there is not better proof of the state of the property market than the balance book of a developer.
Vingroup, one of Vietnam’s leading property developers, reported a 72 percent increase in revenue in 2016. Totaling USD 2.6 billion, this was 30 percent more than anticipated. The company reports that this is due to growth in real estate, retail and tourism.
2016 was a busy year for this reputable developer. They launched two new brands, Vincom and Vincity, to fill the gap at the lower end of the market. According to the Vietnam National Real Estate Association this segment is expected to account for 70 percent of demand. Good news for Vingroup particularly because the government is encouraging more affordable housing.
Vingroup’s fourth retail shopping centre was launched. Vincom+ “one-stop” shopping outlet 50 kilometres outside of Ho Chi Minh City in Dong Nai province. The plan is to open another 20 of these outlets in this coming year. This will cut into Vingroup’s expenses which have doubled thanks to the development of their retail sector.
With property performing well across the board it is unsurprising that Vietnam is receiving global attention. Reaffirming its status as a good place to invest, this news from Vingroup goes to reinforce this.