Vietnam's real state attracting more Japanese investors
Japan is the leading investor in Vietnam with USD6.47bn and real estate is a popular sector for investment in recent years.
The smart city project in Hai Boi and Vinh Ngoc of Dong Anh District will be developed by four Vietnamese developers and a Japanese partner, Sumitomo Corporation, with a total investment of USD4.14bn. According to the Foreign Investment Agency, this was the biggest project in the first half of 2018.
Nomura Real Estate also bought 24% stake in Sun Wah Tower in HCM City's District 1. The price has not been disclosed but this is Nomura’s first investment in the Grade A office sector in the Asia-Pacific. Nomura is also co-operating with Phu My Hung Corporation to develop Phu My Hung Midtown in District 7.
Japanese investors have collaborated with local real estate moguls since 2014 in many residential projects in HCM City and hotel and resort projects in Danang and Phu Quoc. Mikazuki Group announced the plan to invest USD100m into a tourism project in Danang and in late June, Hinokiya Group signed contracts with local investors to introduce Japanese-styled houses in Vietnam.
According to the real estate service firm, JLL Vietnam, the local real estate sector started attracting attention from foreign investors from 2014 to 2016, most of them are from Japan, South Korea and Singapore.
Big cities like Hanoi and HCM City have large populations and stable economic growth which has led to an increasing middle class and the need for better infrastructure and urban areas.
Shinichi Sakaki, deputy general director of the City Bureau, at Japan's Ministry of Land, Infrastructure, Transport and Tourism, said they had a supportive policy to encourage overseas real estate investments. Japan also has experience in developing huge satellite urban areas and wants to export techniques.
Japanese firms have also participated in Vietnam's real estate sector via transferring land evaluation techniques and boosting the financial sector. According to the Japanese newspaper, Nikkei, real estate prices are soaring in Vietnam along with the urbanisation rate, however, it lacks a standard guide since prices determined by the government do not reflect the market.
Japanese firms will have more opportunities in Vietnam while Japan can help Vietnam with land evaluation techniques.
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The smart city project in Hai Boi and Vinh Ngoc of Dong Anh District will be developed by four Vietnamese developers and a Japanese partner, Sumitomo Corporation, with a total investment of USD4.14bn. According to the Foreign Investment Agency, this was the biggest project in the first half of 2018.
Nomura Real Estate also bought 24% stake in Sun Wah Tower in HCM City's District 1. The price has not been disclosed but this is Nomura’s first investment in the Grade A office sector in the Asia-Pacific. Nomura is also co-operating with Phu My Hung Corporation to develop Phu My Hung Midtown in District 7.
Japanese investors have collaborated with local real estate moguls since 2014 in many residential projects in HCM City and hotel and resort projects in Danang and Phu Quoc. Mikazuki Group announced the plan to invest USD100m into a tourism project in Danang and in late June, Hinokiya Group signed contracts with local investors to introduce Japanese-styled houses in Vietnam.
According to the real estate service firm, JLL Vietnam, the local real estate sector started attracting attention from foreign investors from 2014 to 2016, most of them are from Japan, South Korea and Singapore.
Big cities like Hanoi and HCM City have large populations and stable economic growth which has led to an increasing middle class and the need for better infrastructure and urban areas.
Shinichi Sakaki, deputy general director of the City Bureau, at Japan's Ministry of Land, Infrastructure, Transport and Tourism, said they had a supportive policy to encourage overseas real estate investments. Japan also has experience in developing huge satellite urban areas and wants to export techniques.
Japanese firms have also participated in Vietnam's real estate sector via transferring land evaluation techniques and boosting the financial sector. According to the Japanese newspaper, Nikkei, real estate prices are soaring in Vietnam along with the urbanisation rate, however, it lacks a standard guide since prices determined by the government do not reflect the market.
Japanese firms will have more opportunities in Vietnam while Japan can help Vietnam with land evaluation techniques.
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