The Hanoitimes - The most obvious benefits of offshore investment include assisting domestic real estate businesses to diversify their portfolios, increasing cooperation opportunities with a broader business network, and seeking new investment potential. Alongside the international investment trend into the Vietnamese market, domestic real estate companies have begun to seek investment opportunities in overseas real estate markets. Hoang Nguyet Minh, associate director of Savills Hanoi. Photo: Savills Vietnam “Offshore investment may not achieve as high ROI [Return on Investment] as in Vietnam, but in many markets, especially developed countries, investors can be assured of more stable returns. Several overseas investments by Vietnamese groups have demonstrated some success, with stable returns, improved knowledge of international standards in portfolio management, creating trust from international investment partners and most importantly promoting Vietnam on the investment world map,” Minh added. Neil MacGregor, managing director of Savills Vietnam. Photo: Savills Vietnam To achieve the successful investment in foreign markets, Minh suggested 3 tips for domestic real estate developers. Firstly, conduct market research. Depending on the market, research should cover the trading practices of that particular market, consumer demand, market trends, future supply and how directly and indirectly competing projects affect the project. Market research must consider any delays in completing a transaction and obtaining an investment license for a new project in the host country. Secondly, know the rules before deciding to invest. It is important to understand the process and methods of investing in the host country. Always seek advice from lawyers in the country of investment to ensure that there are no unnecessary legal risks. A clear understanding of legal requirements is imperative for all investors for any projects. …
Real estate company
Covid-19 causes insolvency of real estate enterprises
The Hanoitimes - The real estate industry has accounted for about 4.42% of Vietnam’s total gross domestic product in 2020. Nearly 1,000 real estate enterprises have completed dissolution procedures in 2020 in Vietnam due to the impact of Covid-19, according to the Ministry of Construction. A number of real estate enterprises had to go bankrupt due to Covid-19 in 2020. Photo: Doan Thanh Experts have said that the Covid-19 pandemic had delayed the construction of many property projects in Vietnam, while trading floors have been shut down. In particular, investors in the hotel segment were unable to cover operation costs due to lack of guests, making them to sell their hotels at a low price. Last year, many real estate enterprises had to improve their capacity and increase adaptability to the pandemic. The number of the newly-established enterprises in the sector in 2020 was 6,694, down 15.5% compared to 2019. In the last quarter of 2020, the sector slightly expanded compared to growth in the first quarter mainly thanks to the rapid recovery of the housing and industrial segments. This led to a positive growth for the whole year of 2020. According to the Ministry of Construction, the real estate credit kept expanding in the whole year of 2020, except for the first quarter because of the Covid-19 outbreak. In addition to bank credit, which was the main source of capital, the real estate market lured inflows from other sources such as individuals, remittances and capital from the issuance of stocks, bonds of listed companies and foreign-invested enterprises. …
[Read more...] about Covid-19 causes insolvency of real estate enterprises
Vietnam’s coronavirus success story excites real estate developers
The Hanoitimes - Foreign real estate investors are believed to see a safe shelter for their money. Vietnam’s containment of Covid-19 has pinned hope among foreign real estate investors who see a safe shelter to allocate their money. Vietnam's real estate sector remains attractive to foreign developers. Photo: Phung Huynh Vu Qui/Getty Images The sentiment among the real estate developers has become strong following the encouragement by the governments in their own countries after a large number of multinational attempted to relocate manufacturing bases out of China. Foreign experts attribute the sentiment to the safety that the government of Vietnam has fight for in the battle against the pandemic. South China Morning Post believes that Vietnam is set to get a second round of tonic from global companies diversifying their production bases in the region as the coronavirus outbreak exposes the concentration risk in China. The situation in Vietnam burnishes its appeal as an alternative to China since giant companies like Apple, Samsung and their suppliers switched out to limit the damage caused by higher tariffs in the US-China trade war. Meanwhile, global real estate and investment management firm JLL believed that Vietnam, with relatively developed infrastructure and proximity to China, has attracted the majority of those who wanted to diversify their manufacturing portfolio outside China. Although the Covid-19 pandemic is currently causing difficulties for investment decisions or relocation activities, industrial park developers remain confident of increasing land prices as they were well aware of long-term potential in Vietnam’s industrial segment, sending land prices soaring in the northern industrial market, JLL explained. Demand for industrial land remained strong in the first quarter this year thanks to Vietnam’s good industrial fundamentals, the consultancy company noted. Analysts say industrial and residential …
[Read more...] about Vietnam’s coronavirus success story excites real estate developers