VietNamNet Bridge - The strong capital flow from Asian investors has helped warm up the real estate market and revive projects which have been left idle for many years.

Vietnam is an attractive real estate market 

Happyland, an entertainment complex in Ben Luc district of Long An province, has kicked off again after six years of interruption because of the investor’s financial problems. 

In the immediate time, Phu An Construction & Infrastructure Development, a subsidiary of Khang Thong Group, will build a 5-star hotel (1,000 rooms), a resort, entertainment area and shopping mall. 

The $2 billion project was expected by Khang Thong to become a ‘Disneyland in Vietnam’.

Khang Thong’s president Phan Thi Phuong Thao said at the project re-launch ceremony that the project was revived thanks to the strategic investor Vina Oscar Hotel Ltd from Hong Kong.

The strong capital flow from Asian investors has helped warm up the real estate market and revive projects which have been left idle for many years.

A source from Khang Thong said an 88 percent stake of the project, worth $668 million, has been transferred to Vina Oscar Hotel. 

The source also said the deal will help the company fulfill the debt payment obligation and resume project implementation.

Asked about the capital contribution by Vina Oscar Hotel into Happyland project, an official of the Long An provincial investment department said legally there has been no change in investors. 

However, the investor recently asked about the procedures for foreign investors to contribute capital to projects.

An analyst said the Vietnamese real estate market has caught attention from foreign investors, especially those from Japan, South Korea and Singapore. Particularly, capital flow from China has been increasing rapidly.

Hong Kong Land is expected to become the strategic partner to team up with CII to develop houses in the Thu Thiem new urban area in HCMC.

The real estate market has also become busy with commitments by investors who have been present in Vietnam for many years.

Hong Kong-based Sunwah in October announced investment in Sunwah Pearl project in Binh Thanh district, expected to be the third large real estate project in Vietnam. The other two are Sunwah Tower and Saigon Pearl.

Analysts said that M&As are a growing tendency because this allows foreign investors to save time following procedures. They can access a ‘clean land fund’ and won’t have to spend time on site clearance.

Than Thanh Vu from Sao Khue, a consultancy firm, said Japanese investors, who are cautious and demand transparency, tend to make investments through M&As.