08:49 | 09/08/2016 Economy
Vietnamese real estate is attracting Japanese investors thanks to the market’s recovery and the country’s deep integration into the global economy.
llustrative image (Source: VNA)
A number of deals between Japanese and Vietnamese companies have been secured over the past two years, including the 1.2 billion USD Tokyu urban project in Binh Duong.
Japan’s recent upsurge in investment began in 2015 when major Japanese groups conducted mergers and acquisitions with domestic companies.
The deal between Japanese Creed Group investment fund and Vietnamese An Gia Investment was a notable example. The Tokyo-headquartered group invested 200 million USD in An Gia Investment for a 20 percent stake in the Vietnamese real estate company.
The two sides together with Phat Dat Realty will spend 500 million USD on developing River City , a project of 8,000 apartments, in Ho Chi Minh City .
Chairman of the HCM City Real Estate Association Le Hoang Chau highlighted the connectivity between Japanese and domestic businesses, saying foreign enterprises can share experience in building, designing and managing.
Japan, Singapore, the Republic of Korea, and Hong Kong are the biggest capital resources for Vietnamese real estate, he said.
In mid-September, the Vietnam Tourism Property Association will host a delegation of about 20 entrepreneurs to seek partners in Japan in construction, tourism property, accommodations, industry and infrastructure.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, Japan is the second biggest investor in Vietnam with 3,117 valid projects capitalised at 39.8 billion USD.
In the first six months of 2016, total newly-registered and increased capital of Japanese firms was estimated at more than 1.2 trillion USD, making up 10.8 percent of total registered capital in Vietnam./.