HCM CITY — Many Asian investors have poured money into the property industry, making it second largest recipient of FDI in Viet Nam this year.
Though the industry has remained depressed, they invested US$1.7 billion.
Of the 10 projects in the year to date the Tokyu Binh Duong Garden City by Japan's Tokyu Group and the Southern Ha Noi Supporting Industries Park (HANSSIP) by the Japanese Shimizu Corporation are the largest in terms of investment.
Property developers and investment funds from other Asian countries are also eyeing Viet Nam's realty sector.
According to the Gulf Times, Qatar plans to invest up to $4 billion in a series of properties, mostly focused on infrastructure, shopping malls, and the residential and hotel sectors.
Malaysia's SP Setia Bhd, which is developing two property projects in southern Binh Duong Province, wants to expand to Ha Noi and HCM City.
Speaking at a recent property conference in Ha Noi, Tran Nhu Trung, deputy director of Savills Ha Noi, revealed that many Japanese, South Korean, Singaporean, and Malaysian investors have sought Savills's assistance to explore investment opportunities in the country.
Tran Tan Thien, chairman of investment consultancy Song Phat Company, said Asian investment, especially Japanese, increased strongly in the first half of the year.
Asians are interested in the Vietnamese property market due to cultural similarities, good political relations, and good geographic location, he said.
The economic crisis in the EU has prompted investors to switch their focus to Asian countries, including Viet Nam.
There are hurdles to investing in the Vietnamese property industry in the short term.
Many foreign-invested projects have fallen behind schedule – like Booyoung International Apartment Complex, Times Square, and Park City in Ha Noi, and Berjaya Viet Nam Financial Center and Berjaya Viet Nam International University Township in HCM City.
Others like the Creative City project in central Phu Yen Province and Da Phuoc International Urban area in Da Nang City have even seen their licences cancelled.
But from all accounts foreign investors still rate it as an attractive market.
Analysts expect the increase in FDI to help the property market recover soon. — VNS