The long process of project approval from competent government agencies and the serious impact of COVID-19 have helped mergers and acquisitions in real estate sector become more active. A recent report released by VNDirect Securities Corporation stated that mergers and acquisitions (M&A) deals, especially in transferring part of large-scale real estate projects, were considered one of the fastest solutions for foreign developers when they want to jump into the Vietnamese real estate market, as well as for the domestic developers expanding their land fund and investment portfolios. This report also cited that some projects from giant developers are currently in the negotiation process with most expected to be completed this year. “Thanks to the improvement of the legal system in the Law on Investment, a range of deals will be done within this year with total value up to more than $1 billion,” the report cited. According to Tran Khanh Hien, deputy director of the Research at VNDirect, the real estate market in 2021 will be step-by-step resumed at its active level, based on the economic recovery, rising housing demand, and increased supply due to a range of projects that will be permitted to continue after long delays to review procedures. The Gem Riverside, funded by domestic developers Dat Xanh Group, and the Eco-smart city at Thu Thiem from South Korea’s Lotte Group, are among those looking to be kicked forward. Developers cited that M&A deals in real estate are a motivation for developers to be resumed after a long time of being impacted by the ongoing pandemic. Nguyen Thai Phien, senior financial director at Novaland Group, said that the corporation is based on M&A deals in order to develop its land fund and business for long-term development. Novaland started collecting land in 2005 via M&As and currently boasts more than 700 hectares in the east of Ho Chi Minh City, 700ha in Dong Nai province, and more than 2,000ha in Phan Thiet …
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South Korean group invests in Vietnam’s real estate market
Jeon Yong Ho, Charm Engineering’s marketing director Charm Engineering, South Korea’s LCD and transistor manufacturer, has poured hundreds of millions of US dollars into real estate projects in Vietnam. Though it specialises in electronics and transistor technology, Charm Engineering has eyed large-scale property projects with its investment in Vietnam, said Jeon Yong Ho, the company’s marketing director. Charm Engineering is currently spending around US$895 million in 7 real estate projects in Vietnam. Charm Plaza, its first project in the market, has just been completed in Di An District in the southern Province of Binh Duong, on October 1st, at a cost of around US$200 million. Once completed, Charm Plaza will become a housing complex with around 2,700 apartments, supermarkets, and trade centres. The company has also planned to invest in several other projects, such as a US$600 million Toc Tien New Urban Zone in Ba Ria-Vung Tau Province, a five-star hotel and resort in Vung Tau City, and offices for lease in Ho Chi Minh City and Binh Duong Province. Source: thesaigontimes Translated by Vu Hung …
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In difficult times, Vietnamese billionaires still earn billions of dollars
Last year was a stormy one for Vietnam’s businesses, but billionaires still were able to pocket billions of dollars. Billionaire Nguyen Dang Quang Just in the last several months of 2020, MSN shares of Nguyen Dang Quang’s Masan Group saw prices increase by twofold, hitting VND95,000 per share in mid-November. The prices continued increasing in early 2021, reaching VND100,000 per share in late January. The price increase helped Quang have hundreds of millions of dollars worth of stock assets, while Masan’s shareholders also got $2 billion. This was a surprise to many people, because Masan, like other businesses, suffered from the Covid-19 pandemic. The consumer goods retail integration strategy has begun bearing fruit with VinCommerce making profit in Q4. Meanwhile, Masan Consumer Holdings (MCH) reported a 30 percent revenue growth rate, for the first time obtaining revenue of $1 billion. Masan Group’s revenue increased sharply, doubling last year, hitting VND77.2 trillion, while the net profit was VND1.234 trillion. Vingroup (VIC) of the dollar billionaire Pham Nhat Vuong has reported revenue of VND110 trillion, or $5 billion for the stormy year 2020, which marked a milestone in its strategy on shifting focus to technology, industry and service. The revenue from automobile and smartphone manufacturing increased sharply in the year, while revenue from the real estate sector kept rising thanks to three Vinhomes huge projects. The revenue of VinSmart/VinFast increased by twofold to VND18 trillion. Analysts say that Vuong gained initial success in the industry sector as his VinFast sold 31,500 cars in 2020 alone. Of these, VinFast Fadil, VinFast Lux A and VinFast Lux SA became the bestsellers in their market segments. Meanwhile, his VinSmart stayed firmly among the bestselling smartphone models in Q4. It began providing smarthome solutions in two mega urban areas – Vinhomes Ocean Park and Vinhomes Smart City in Hanoi. Hoa Phat Group of …
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