The Tokyu Binh Duong Garden City, which includes two 24-storey buildings, is expected to open 406 high class flats of Statistics by the Vietnam Real Estate Association (VNREA) show that in January alone, the real estate market welcomed an additional nearly USD300 million from foreign investors, nearly 21% of the total FDI capital into Vietnam.
Japanese standard to customers. (Photo: VNA)
In 2016, the investment reached some USD1.3 billion, accounting for 10% of FDI capital into Vietnam. In particular, the investment was more practical, signalling positive development of the real estate market, according to VNREA.
Ho Chi Minh city is an attractive destination as it reports up to 40.9% of the total FDI real estate projects of the whole country. Notable is the debut of the joint venture between Japan’s Maeda Corporation and Thien Duc Company in developing the Waterina Suites project in District 2 with a total investment of USD30 million. The project is considered a competitive one, putting pressure on domestic investors.
Earlier, the Mitsubishi Group signed with the Bitexco Group to set up a joint venture in developing a housing project with an initial capital of some USD290 million.
Another name, Kajima, a construction group from Japan which has 176 years experience in construction, has recently set up a joint venture with Indochina Capital, using USD1 billion over the next 10 years. At first, it will carry out 4 high-class real estate projects in such big cities as Hanoi, Da Nang and Ho Chi Minh.
In addition, the number of newly-established real estate businesses has increased. According to the Corporate and Business Registration Department, in 2016, 110,000 businesses registered to be formed, an increase of 16.2% compared to 2015. This was also a record high number.
Accordingly, the amount of committed capital was VND891.094 trillion, an increase of 48.1% compared to 2015.
The number of businesses returning to operation was 26,689, an increase of 43.1%; of which the sector reporting the highest number of newly-established businesses was real estate, with an increase of 83.9%./.