Asian investors are interested in Thu Thiem new urban area development plan

Pham Lam, CEO of DKRA Vietnam, said Asian investors are now very active in Vietnam, especially in the ‘golden land’ areas. 

The investors are expanding their product items and targeting more market segments, from commercial real estate and resort real estate to housing and entertainment. They are even eyeing the financial market related to real estate.

The investors from Hong Kong have chosen land and future products with very high value, mostly in the luxury market segment.

Meanwhile, South Korean investors tend to choose the golden land plots along the coastline or peninsula and near rivers to develop houses, resort and entertainment real estate. They believe that Vietnam’s market at this time is similar to South Korea some decades ago.

Singaporeans focus on seeking potential land plots, promising to see strong development in the future. Japanese and Malaysians favor the mid- and high-end market segments, and choose land plots in newly developed districts. 

Many Japanese and Malaysian invested projects are located in districts 7, 9, Binh Chanh and Tan Phu, on backbone routes of the districts.

As for Chinese investors, China Fortune Land Development (CFLD) jumped into the Vietnam’s market in 2017 with housing projects near industrial zones.

CFLD has a huge project on Dai Phuoc Island of Dong Nai province, covering an area of 198.5 hectares.

Asian investors all target wealthy clients who are willing to pay big money for valuable assets with outstanding quality.

Asian investors like to invest in Vietnam for several reasons, according to Lam of DKRA.

Vietnam is a developing market, where there are more opportunities than saturated and developed markets. The political certainties in Vietnam ensure safety for their investments.

The high-end real estate in Vietnam promises higher profitability (4 percent in districts 1 and 3 and 5-6.5 percent in districts 2, An Phu and Thu Thiem area), than ASEAN countries.

Vietnam has a culture with similarities to other Asian countries, and the population is young, while income has improved, which has led to sharp demand.

The short distance between Vietnam and other Asian countries allows investors to supervise the projects’ implementation. 

According to the Foreign Investment Agency  (FIA), foreign investors poured $20.33 billion into Vietnam in the first half of the year, up by 5.7 percent from a year earlier. Real estate received $5.54 billion or 27.2 percent of the capital, becoming the second biggest sector in FDI attraction.

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