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Japanese capital flows in real estate in Vietnam

Many Japanese firms such as Mitsubishi, Maeda, Kajima, Sumitomo and Creed Group have made investments worth tens to hundreds of millions USD in the Vietnamese realty market within over the past year.
Japanese capital flows in real estate in Vietnam ảnh 1Japanese capital flows in real estate in Vietnam (Illustrative image. Source: VNA)
Hanoi (VNA) – Many Japanese firms suchas Mitsubishi, Maeda, Kajima, Sumitomo and Creed Group have made investmentsworth tens to hundreds of millions USD in the Vietnamese realty market withinover the past year.

For example, the Mitsubishi Group has invested290 million USD in a joint venture with Vietnam’s Bitexco to develop the ManorCentral Park in Hanoi. In the first stage of cooperation, the two sides agreedto establish a joint venture to develop 240 low-rise buildings and twohigh-rise buildings with 1,036 apartments.

In September 2016, the Kajima Overseas Asiacompany spent 500 million USD to establish the Indochina Kajima Developmentjoint venture with Indochina Capital. Both plan to invest in Vietnam’s realestate market in the next 10 years.

More recently, Sanyo Home invested in the fieldvia cooperation with Tien Phat company under the Hoa Binh property business andconstruction joint stock company to invest in the Ascent Lakeside project inDistrict 7, HCM City.

Meanwhile, Sumitomo will invest in the NhatTan-Noi Bai urban area in Hanoi along with Vietnam’s BRG Group.

According to Toshihiko Muneyoshi, president ofthe investment fund Creed Group, with a population exceeding 93 million people,increasing incomes and rapid urbanisation, the demand for houses among youngcustomers is huge.

Notably, each year, 50,000-60,000 new households are expectedto be built in Hanoi and Ho Chi Minh City, he said, adding that the fund willfocus on the middle-range segment and seek more partners in Vietnam.

Japanese investors have secured their positionin Vietnam in recent years with 3,411 projects worth nearly 44 billion USD.

According to the Foreign Investment Agency under the Ministryof Planning and Investment, in the first six months 2017, Japan rose to firstposition in 94 countries and territories with investment projects in Vietnam, withtotal registered capital of 5.08 billion USD, making up 26.45 percent of totalinvestment.-VNA
VNA

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