According to the Foreign Investment Agency (FIA), property ranked second among business fields which attracted FDI in the first six months of the year.
Twenty-five real estate projects were licensed during that time with total investment capital of $604.8 million, which accounted for 5.3 per cent of total FDI registered capital.
The committed capital in the sector in the first six months of the last year accounted for 8.5 per cent of total registered capital, but the exact figure was $465.4 million.
Midtown, with registered capital of $225.6 million, is the most noteworthy project. Developed by an investor from Cayman Islands, it was the largest project licensed in the last six months.
A series of large M&A deals in the field have been announced in recent months.
Keppel Land signed a conditional investment agreement to obtain 40 per cent of stakes in Empire City.
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Twenty-five real estate projects were licensed during that time with total investment capital of $604.8 million, which accounted for 5.3 percent of total FDI registered capital. |
The company would spend $1.2 billion to build a complex of apartments, offices, retail area and a 86-storey tower in Thu Thiem new urban area in HCM City.
Meanwhile, Creed Group from Japan has contributed capital to River City project, to be built on an area of 11.25 hectares in district 7. The VND12 trillion project would comprise 12 apartment blocks with 8,000 offices, apartments and shops.
Australian Sapphire JSC, a subsidiary of Sakkara Group, has said it was seeking medium- and large-scale office, apartment and house projects in Vietnam.
The observers have also mentioned the so-called ‘Singaporean phenomenon’.
Singaporean capital has been flowing into 18 out of 21 business fields in Vietnam. Manufacturing & processing proves to attract most projects, while real estate ranks second with 81 projects capitalized at $10.9 billion in total, accounting for 30 per cent of Singapore’s total investment capital in Vietnam.
Deputy chair of VCCI Doan Duy Khuong noted that Vietnam’s real estate and tourism attracts many Singaporean investors.
Keppel Land is considered a pioneering investor in Vietnam, while CapitalLand belongs to investors of the second generation who came to Vietnam in late 1990s. Semcorp and Mapletree are also well known Singaporean real estate developers in Vietnam.
Jeff Foo, chair of the Singaporean Real Estate Brokerage, said that Singapore was no longer attractive to investors because of the cool-down policy applied by the government. Therefore, Singaporean investors are seeking opportunities in foreign markets, including Vietnam.
