American investor and CEO of Indochina Capital, Peter Ryder How have you assessed the contribution of the private economic sector, especially foreign direct investment (FDI), to Vietnam’s real estate market? An interesting trend in Vietnam, which I detect, is that the real estate development has long been dominated by the private sector. This is unlike many other industries in which the government still has very large involvement. If you look at the history of real estate development over the past 25 years, we can see that Vietnam has really opened up in the post-doi moi era. In the immediate wake of this, major developers were foreign investors who typically set up joint ventures with domestic authorities. During this time, Indochina Capital began two joint ventures, one with Danang Tourism to develop the Furama Resort, and another with the Vietnam Fatherland Front and Hongkong Land to develop an office building at 63 Ly Thai To in Hanoi. In the last decade, the market … [Read more...] about Real estate at the heart of economy
Foreign investor real estate
Banks tighten lending, but capital flows into real estate market
VietNamNet Bridge - Once banks restrict lending, this will affect the real estate market. However, experts believe that no negative impact on the market will occur. Once banks restrict lending, this will affect the real estate market Trang Bui from Jones Lang LaSalle said that the State Bank of Vietnam has decided to tighten real estate credit. However, the expert believes that the market will be unaffected by the move. Vietnamese developers have good understanding about the domestic market and legal framework, while foreign investors have powerful financial capability and project development experience. “Banks have become more skeptical when considering projects to fund. Only investors with good financial capability and projects with potential can access bank loans,” Trang said. RELATED NEWS VN Central Bank to inspect banks that pour money into real estate Real estate credit under strict control Mai Lan … [Read more...] about Banks tighten lending, but capital flows into real estate market
Global investors eye Vietnam’s real estate market
Global investors eye Vietnam’s real estate market. (Photo: VNA) Hanoi (VNA) – Foreign investors cannot take their eyes off the Vietnamese real estate market, one of the most dynamic emerging markets globally, according to an article by regional managing director, Southeast Asia, CBRE Vikram Kohli on www.bussinesstimes.com.sg. “Driving its strong economic growth is an expanding middle class with thickening wallets,” the article said, adding that rapid urbanisation is supported by a young, growing and educated population, and all bode well for an economy with one of the world’s fastest growing gross domestic product (GDP) rate. In addition, the World Bank has projected that Vietnam’s GDP will expand by 6.8 percent this year, fuelling big appetites of global investors looking to make their mark in Vietnam’s burgeoning property market. In the past three years, Vietnam has seen a significant increase in the number of foreign investments in … [Read more...] about Global investors eye Vietnam’s real estate market
Foreign investors make beeline for Vietnam’s urban tech sector
The Hanoitimes - With global populations flooding into urban centers amid a technology boom, the pace of investment in the urban-tech sector is unlikely to relent anytime soon. A rapidly growing population in Vietnam’s cities boosts the urban-tech sector Following the global trend, Vietnam’s urban tech sector also received large interest from foreign investors, who have helped tech-driven services like ride-sharing, food delivery apps and co-working to quickly infiltrate the daily lives of the country’s city dwellers. According to Vinay Goel, Chief Digital Product Officer of American services and investment management firm Jones Lang LaSalle (JLL), venture capitalists have been pouring record amounts of investment into the urban tech sector. Global investment in urban tech totaled more than US$75 billion between 2016 and 2018, more than what was spent on traditional sectors like biopharma, according to C.B. Insights. In the United States, 45 percent of all … [Read more...] about Foreign investors make beeline for Vietnam’s urban tech sector
Industrial real estate sector booms
VietNamNet Bridge - The strong flow of FDI is expected to trigger a new investment wave into the industrial real estate sector. The FDI flow is expected to trigger a new wave of investment into industrial real estate sector According to JLL, the total supply of industrial land for leasing in southern industrial zones (IZs) had reached 37,030 hectares by the end of June. Not all IZs can catch the eyes of manufacturers. Foreign investors only choose IZs with good infrastructure, especially electricity and water supply. Besides the cheap labor cost in Vietnam, which is half of China’s, the reasonable rent is also attracts foreign investors. RELATED NEWS Vietnam plans to prioritize ecological IZ development Industrial zones getting hot again Thanh Lich … [Read more...] about Industrial real estate sector booms