10:43 | 25/07/2017 Society
Many Japanese firms such as Mitsubishi, Maeda, Kajima, Sumitomo and Creed Group have made investments worth tens to hundreds of millions USD in the Vietnamese realty market within over the past year.
|Japanese capital flows in real estate in Vietnam - Illustrative image - Source: VNA|
For example, the Mitsubishi Group has invested 290 million USD in a joint venture with Vietnam’s Bitexco to develop the Manor Central Park in Hanoi. In the first stage of cooperation, the two sides agreed to establish a joint venture to develop 240 low-rise buildings and two high-rise buildings with 1,036 apartments.
In September 2016, the Kajima Overseas Asia company spent 500 million USD to establish the Indochina Kajima Development joint venture with Indochina Capital. Both plan to invest in Vietnam’s real estate market in the next 10 years.
More recently, Sanyo Home invested in the field via cooperation with Tien Phat company under the Hoa Binh property business and construction joint stock company to invest in the Ascent Lakeside project in District 7, HCM City.
Meanwhile, Sumitomo will invest in the Nhat Tan-Noi Bai urban area in Hanoi along with Vietnam’s BRG Group.
According to Toshihiko Muneyoshi, president of the investment fund Creed Group, with a population exceeding 93 million people, increasing incomes and rapid urbanisation, the demand for houses among young customers is huge.
Notably, each year, 50,000-60,000 new households are expected to be built in Hanoi and Ho Chi Minh City, he said, adding that the fund will focus on the middle-range segment and seek more partners in Vietnam.
Japanese investors have secured their position in Vietnam in recent years with 3,411 projects worth nearly 44 billion USD.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first six months 2017, Japan rose to first position in 94 countries and territories with investment projects in Vietnam, with total registered capital of 5.08 billion USD, making up 26.45 percent of total investment.