As per the latest report of CBRE Vietnam, HCM City has many successful real estate projects. In the segment of retail real estate, the Thailand investor Berli Jucker completed the acquisition of Metro Cash & Carry Vietnam with nearly $900 million while Posco finished selling Diamond Plaza to Korean partner of Lotte Shopping.
In the project land segment, in the last quarter, Keppel Land (Singapore) and Creed Group (Japan) poured capital into four housing projects. Keppel Land purchased one project of Tien Phuoc Company at $26.7 million. The Creed group announced to invest 600 billion dong in City Gate Towers through the investment in project bonds of NBB Company. In addition, Creed Group committed to purchase 50 percent stake in two other projects including NBB Garden II (11.51 hectares) and NBB Garden III (8.16 hectares).
The investment wave of the foreign sector influenced the investment promotion process of some Southern provinces and cities. Recently, Can Tho People's Committee invited Japanese companies to invest in key projects in the locality. In the housing category, the province welcomed Japan investors to develop the Con Khuong amusement urban area in Ninh Kieu district with an area of 93 hectares and an investment of 5.5 trillion dong and Vo Van Kiet urban area with an area of 692 hectares and an investment of 13.84 trillion dong.
Meanwhile, in the recreation real estate category, Can Tho offers Japanese investor Cai Khe 5-star hotel project with an estimated investment of $45.5 million and the Con Son resort area with an area of 74.4 hectares in Binh Thuy district with an investment of nearly $100 million.
In Q3/2014, the Tay Ninh Commerce and Tourism Promotion Centre has announced many key projects (most of them are real estate) calling for investment in 2013-2015 without discriminating between domestic and foreign investors. They are the development projects in Ba Den mountain tourism area, Dau Tieng Lake, luxury hotel (3-5 stars), residential area in Ward No. 3, Tay Ninh commune.
As per RCA report, investment transactions in Vietnam tend to increase over the last four years. In 2011-2013, there was an average of 15 transactions recorded each year. In 2014, the participation of foreign investors is increasing.
Nguyen Khai Hoan, Chair of Khai Hoan Land says that foreign investors participate more strongly in Vietnam's real estate market is a positive signal. "When domestic projects face difficulties, the professionalism in the crisis management as well as the financial capacity of foreign investors may help the market bounce back or even move strongly", said Hoan.
The expert says that not just HCM City, many provinces and cities have also been more opened in welcoming domestic and foreign investors in many forms with more open preferential policy and mechanism. This opens up opportunities to call for capital, investment cooperation and promote the development of the real estate market in a professional way.
As per Hoan, regarding the project purchase, the appearance of foreign investors brought about many measures for businesses that are in difficulty. Meanwhile, in terms of local aspect, the calling for investment, especially the foreign sector may significantly improve the investment environment and promote the urban development. "Though the foreign sector is very discerning and tends to prefer investing in production and consumption, they are still particularly interested in the well-located project and may gain stable cash flow", said Hoan.
An expert with hundreds of years in M&A and real estate investment consultancy in HCM City says that the project acquisitions and investment promotion need a lot of time to be successful. However, this market has increasingly received the attention and the foreign sector tends to accelerate. "I believe that in the near future, if real estate investment policies for the foreign sector is widened, M&A deals and foreign investment in this sector will remarkably increase", he said.
Vnexpress
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