According to Savills Viet Nam’s latest press release, in the first half of 2017, Vietnam continued to attract significant foreign direct investment (FDI). Both implemented and registered FDI capital has increased sharply compared to the same period last year.
Much of the increase in FDI was in the manufacturing sector, and as a result was driving industrial developments. Besides, FDI is also a contributing factor to the growth of other sectors of the property market. Both office and hospitality sectors are showing high occupancy, increasing office rents and healthy room rates.
In May, Thailand-based Hemaraj Land & Development and Vietnam-based Cienco 4 secured approval for their US$1 billion joint-venture industrial park, covering 3,200 hectares of land area, in Nghe An Province, Vietnam.
Japanese investors remain active in the market. Nishi Nippon Railroad and Hankyu Realty have joined hands with Nam Long in developing Mizuki Park, a 26-hectare residential project in Binh Chanh District, Ho Chi Minh City, with a total investment size of US$351 million. Meanwhile, Aeon Mall, the renowned Japanese retail group, has entered into a joint venture with BIM Group to develop their second mall in Hanoi on a 16.7-hectare site, with a total estimated investment size of US$200 million.
Local developer SonKim Land has also successfully completed their US$100 million funding from Hong Kong and Japanese investors.
Typical real estate projects in the first half of 2017
The second quarter of 2017 continued to see strong interest in residential development projects. China Fortune Land Development Group has acquired the stake of VinaCapital in Dai Phuoc Lotus project for US$65.3 million. Dai Phuoc Lotus is a residential township project with a total area of 198.5 hectares in Dong Nai Province, adjacent to Ho Chi Minh City.
VinaCapital’s 65% stake in the Times Square project, a mixed-use development site in Hanoi, has also been transferred to Elite Capital Resources Limited for a total consideration of approximately US$41 million.