FDI in Real Estate Reached 1 Billion USD in 2016

The area of real estate business attracted total FDI capital reached 1 billion USD in the first 9 months of 2016.

Foreign Investment Department (Ministry of Planning and Investment) has announced FDI report for the first 9 months of 2016. Accordingly, there were 1,820 newly licensed projects with total registered capital of 11.02 billion USD, increased by 1.1% over the same period. Meanwhile, there are 851 projects registered to adjust capital with the added value of 5.3 billion USD, decreased by 13.9% over the same period.

Generally in the first 9 months of 2016, total newly registered and additional capital reached 16.4 billion USD, decreased by 4.2% over the same period in 2015.

In 9 months, foreign investors have invested in 19 sectorsin which the field of processing industry, manufacturing is the sector attracting more attention of foreign investors with 767 new projects and 608 respectively adjust capital projects.

In 9 months, foreign investors have invested in 19 sectors, in which the field of processing industry and manufacturing are the sectors attracting more attention of foreign investors with 767 new projects and 608 projects register to adjust capital.

Total new and increasing capital to processing industry and manufacturing reached 12.15 billion USD, accounting for 73.9% of total registered capital in 9 months.

In particular, the field of real estate business ranks 2^nd with 34 newly registered projects, total capital reached 1 billion USD. The field of professional activities, science and technology ranks 3^rd with 649 million USD, accounting for 3.9% of total investment capital…

In the first 9 months of 2016, there are 65 countries and territories have investment projects in Vietnam. Korea leads the way with a total investmentcapital reached 5.58 billion USD. Singapore ranked 2^nd with total investment of 1.84 billion USD. Japan ranked 3^rd with total investment capital of 1.7 billion USD.

Foreign investors have invested in 54 provinces and cities in which Hai Phong attracted the most investment capital with 37 new projects and 28 projects register to adjust capital, corresponding to 2.74 billion USD. Followed by Hanoi and Dong Nai with total investment capital of 1.97 and 1.89 billion USD respectively.

Some large projects that are licensed in the first 9 months of 2016 including LG Display Hai Phong with total registered investment capital of 1.5 billion USD, invested by LG Display Co., Ltd (Korea). The goal of the project is producing and processing plastic OLED display products for mobile devices such as cell phones, smart watches, tablets.

LG Innotek plant project in Hai Phong with total registered investment capital of 550 million, invested by LG Innotek Co., Ltd. (Korea) with the goal of producing camera modules.

Amata City project in Long Thanh has a total investment of 309.3 million USD, invested by Thai investor with the goal of building service urban in Dong Nai.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. 

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Hong Kong Investment Funds Investing in Real Estate, Banking of Vietnam

In the talks with Vietnam Prime Minister Nguyen Xuan Phuc on September 14^th 2016, representatives of corporations and large investment funds from Hong Kong have expressed their interest in investment opportunities in Vietnam.

Talking to Hong Kong enterprises, Government leaders said that Vietnam has amended the Law on Investment towards more open and transparent, creating stable investment environment, ensuring maximum property rights of investors and enterprises; conducting strong reform of administrative procedures in areas such as taxes, electronic customs clearance...

In the process of development, Vietnam hopes that foreign investors will invest in areas such as road transport, railway, waterway and other infrastructure. The Vietnam Prime Minister also noted that investors in the process of production and business should pay attention to ensure the livelihood and skills training of employees; compliance with laws and regulations regarding environment protection in Vietnam.

Highly appreciated the solutions and policies of Vietnam Government, Dr. Jonathan Choi - Sunwah Group Chairman, who is also a permanent Honorary President of China Chamber of Commerce in Hong Kong said that investors in Hong Kong are very interested in the stable investment environment and respecting the development of private sector in Vietnam. The investment sectors that are interested by Hong Kong’s large enterprises and investment funds are energy, healthcare, realestate, finance and banking.

Speaking in front of 300 investors attending the Hong Kong - Vietnam Business & Investment Forum, Prime Minister Nguyen Xuan Phuc said that Vietnam will become one of the largest trading partners of China in ASEAN. In 2016, the bilateral trade turnover between the two countries could reach 100 billion USD.

Also at the forum, Head of Hong Kong Special Administrative Region stated that the Government here will continue to open the door and strongly supporting Vietnam enterprises to penetrate the Hong Kong and Chinese domestic markets.

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Danang Resort Real Estate Is Growing Well

Savills Vietnam has just published a report updating the situation of Danang real estate market in the first half of 2016. Accordingly, the segment of hotel, resort and villa continues to be exciting with the launch of many new projects as well as the presence of many famous brands in the world.

Specifically, according to Savills Vietnam, in the first half of 2016, the number of tourists coming to Da Nang has increased by 28% year on year, while domestic passenger traffic increased by 4% year on year.

Thanks to the flourishing of the tourism activity, only in the second quarter of 2016, the total number of 3 – 5 stars hotel in Danang increased by 4% quarter on quarter and 15% year on year. The average occupancy rate has also increased by 2% compared to the first quarter of 2016. The average room rate has increased by 6% over the same period in 2015.

Place these datas in the context of the tourism industry of some central provinces (from Ha Tinh to Thua Thien Hue), which are suffering heavy losses due to the environmental disaster caused by Formosa in the first months of 2016, it is clear that the attraction of Danang tourism is very good.

Also according to Savills, in the second half of 2016, 3 new projects in the hotel segment, which are expected to enter the market, will continue to provide about 1,320 rooms; including Crowne Plaza phase 2, Hilton Danang Hotel and Four Points under Sheraton. Since the third quarter of 2016 to 2018, it is expected to have 35 new projects entering the market.

For the resort villa segment, Danang is a pioneer in high-end coastal real estate segment and second (after Nha Trang) in total supply with 1,199 villas and 3,367 apartments. The surveys indicate that more than 80% of buyers coming from Hanoi, being attracted by diverse portfolio of products, complete infrastructure, tourism prospects, attractive sales policy as well as an image of Danang as a green, young and dynamic city.

We have to mention the successful projects such as Bana Hill, Ocean Villas, Hyatt Regency, Furama, Intercontinetal and Azura. Moreover, there are large-scale future projects that are Soleil Danang, Coco Bay, Da Phuoc, Han Riverside, Ariyana, Central Coast, Vinpearl Han River and Ocean Suites & Estates. The market is expecting a large supply of coastal apartments and villas.

According to Savills Vietnam, Danang provides investors benefits from the complete development of infrastructure and urban planning. While the northwest coastal areas have the advantages of natural landscapes to develop eco-tourism, the urban areas are developing towards becoming a center of trade, finance and education. In addition, the eastern coastal areas are marked for tourism and hotel industries; the southern of Danang is expected to develop tourism and a large urban area.

With the modified Real Estate Business Law, Housing Law and expanding the conditions for foreigners to own houses in Vietnam, the real estate market of Danang will certainly become more attractive and with sustainable development in the future.

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Vietnam Real Estate Attracts Singapore Investors

Investment flows from Singapore to Vietnam real estate sector are increasing with the presence of many huge investors.

According to the Consulate General of Republic of Singapore in Ho Chi Minh City (HCMC), Vietnam is one of the leading markets for investment of Singapore businesses. Currently, Singapore’s real estate businesses are operating successfully in Vietnam. A typical case is the 7 Vietnam – Singapore Industrial Parks (VSIP) that has attracted more than 8 billion USD of investment capital and creating jobs for more than 155,000 workers.

According to Director of Department of International Business Development of Singapore, many multinational enterprises that headquartered in Singapore are also very interested in the real estate market of Vietnam. One example is the Kusto Home Company based in Singapore, which is developing and managing the Diamond Island project in HCMC.

According to President of Kusto Home, they have studied Vietnam real estate market since 2005 and found that Vietnam is a potential and dynamic market, especially the housing segment.

There are many Singapore real estate investors that have operated in Vietnam market for a long time and have been quite successful such as Keppel Land, Mapletree, Sembcorp, CapitaLand…

In particular, Keppel Land is one of Singapore’s real estate investor that has been presented in Vietnam very early and became one of the largest investors in the real estate market of Vietnam.

In Vietnam, Keppel Land has a diversified investment portfolio in Hanoi, HCMC, Dong Nai and Vung Tau with 19 licensed projects, including the grade A office buildings, premium residential projectsnd, modern urban area complex  serviced apartments.

According to CEO of Keppel Land, Vietnam with rapid growth rate is one of the key markets of Keppel Land at the present and in the future.

If Keppel Land invests in many market segments in Vietnam, CapitaLand is now regarded as the leading investors in the segment of housing development. Presented in Vietnam since the 90s of the last century, CapitaLand is developing projects in 6 major cities of Vietnam as Hanoi, HCMC, Hai Phong, Da Nang, Nha Trang and Binh Duong. So far, CapitaLand has provided for the housing market of HCMC and Hanoi of about 7,850 quality apartments, with 8 housing projects.

According to General Director of CapitaLand, Vietnam is one of CapitaLand’s key markets in Asia. According to forecasts, in the coming time, Singapore still continues to invest heavily in the Vietnammarket.

According to the latest report of the Foreign Investment Department (Ministry of Planning and Investment), by the end of June 2016, investment capital in real estate sector accounted for more than 30% of the total foreign direct investment (FDI) of the ASEAN region to Vietnam, with 97 projects. In particular, Singapore accounted for nearly 80% of the number of projects and 60% of total investment capital in this field. The projects of Singapore investors belong to many segments from residential, office, retail space to the real estate for tourism, resort.

According to Chairman of the Singapore RealEstate Brokerage Association, among Singapore’s 10 large enterprises that are investing in Vietnam, there are up to 5 businesses invest in the real estate sector.

In addition to traditional investors that are actively expanding their operations in Vietnam market, many new investors are pouring capital into this country.

SynGience Financial Group from Singapore, Lucky Land Company and Minh Nguyen Long Company have signed contract to invest 400 billion VND in Depot Metro Tham Luong project with the scale of 660 apartments, next to the Tham Luong line stop of the subway no. 2 (Ben Thanh – Tham Luong).

Most recently, Ibeworth Pte. Ltd., – a subsidiary with 100% capital of Keppel Land and Nam Long Investment Joint Stock Company have signed contract to register to buy convertible bonds of Nam Long with a total value of 500 billion VND.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Resort Real Estate Segment Flourishes with New Projects

2016 is identified as a good year for the resort real estatesegment with a series of new launching projects to attract the attention of both investors and consumers. In particular, the real estate projects located in the sea area are attractive to consumers who want to own a second home to serve the needs of pleasure. From the end of 2015, there were many resort real estate projects that are introduced to the market.

According to statistics, the sales volume of apartment and villa are very good, with 70-80% of the launched units were ordered. The amount of people interested in the projects and decide to buy is increasing, thanks to the incentive sales policy, profit commitments from investors, support for preferential interest loans from the cooperative banks with the investor and can use the house for free for a certain period.

Many wealthy families share that they would like to own a coastal apartment or villa because the demand for resort tourism is increasing sharply. Moreover, foreign investors see that resort real estate segment in Vietnam is rich in potential with many famous tourist resorts and long beautiful beaches. The loosening policy allows foreigners to buy and own realestate in Vietnam is also a positive move to promote the demand of many investors jumping into this playground although there are still many difficulties in policy implementation

Currently, many domestic enterprises began to invest into theresort real estate segment, which is an inevitable trend of the market. For about 10 recent years, resort real estate has been formed and attracted the attention of investors. Some domestic investors have experienced successfully in other segments also expanded into this segment. Most of the projects are in the luxury and high-end segments such as beach villa. On the other hand, according to experts, if we can build resort real estate products at a reasonable price, the liquidity will be very good.

Vietnam has the potential for tourism therefore resort real estate is a good investment channel. Investing in an area with great potential for tourism and large amount of passenger traffic would have faster payback than the places that tourism does not develop. At the present, Vietnam has a lot of large investors as Vingroup and Sungroup… are capable to invest in large-scale resort projects. At the same time, the market is also attracting a lot of foreign investors with good financial capability and ability to invest quickly.

Currently the coastal cities like Da Nang, Nha Trang and Phu Quoc are 3 hotspots in attracting capital investments in resort real estatesegment. In terms of location, these coastal cities have the potential to attract investors the most because they are also the famous tourist destination that attracting millions of tourists each year.

2016 is the year of resort real estate segment. The projects in this segment stretch from the sea to the mountain and Sapa is a typical example. Many large investors as Vingroup or Sun Group have been implementing major investment projects here.

Only in 2015, Sa Pa tourism has welcomed nearly 2 million passengers, increased by 42.2% compared with 2014. Currently, the number of tourists visiting Sapa is large and has always had a tendency to increase. While the demand for luxury resort services continues to rise, the supply is limited. Hence, this is a good opportunity to develop the resort real estate segment in this dreamy mountain city.

Resort real estate has opportunity to develop rapidly thanks to the development in transport infrastructure such as airport, highway and cable car system… allowing the movement of tourists to be convenient and easy.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation. 

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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