VietNamNet Bridge – ASEAN investors had registered a total of over US$16.6 billion in property projects in Vietnam as of June with Singapore firms accounting for 60%, according to the Foreign Investment Agency (FIA).

The new SC VivoCity shopping mall in HCMC’s District 7, a joint venture between Vietnam’s Saigon Co.op and Singapore’s Mapletree Investments Pte. Ltd. According to FIA, Singaporean firms had registered a combined US$10 billion in 77 out of 97 property projects involving ASEAN companies as of June this year – Photo: Hung Le

A report by the agency under the Ministry of Planning and Investment showed the capital registered for the property  sector represented 30.4% of total foreign direct investment (FDI) pledged by ASEAN companies for projects in Vietnam with 97 projects. Singapore firms had registered a combined US$10 billion in 77 out of the total number.

Singapore was followed by Malaysia with 16 projects worth US$5.5 billion. Brunei had only two property projects but their pledged capital exceeded US$1 billion. Meanwhile, the property projects of Thai and Filipino firms in Vietnam were small.

Most of the property projects with the involvement of ASEAN companies in Vietnam are in HCMC and Hanoi, the country’s two major economic centers, but the central coast province of Quang Nam is home to the biggest FDI project. This US$4-billion resort project in Quang Nam is being developed by a Singaporean investor, according to FIA.

Among the major property investors of Singapore active in Vietnam are CapitaLand, Keppel Land, Sembcorp, Mapletree and Ascott Limited.

Property investments of ASEAN companies in Vietnam are diverse in fields such as housing, office for lease, retail space for lease, tourism property, resort and industrial estate.

Property service firms said the launch late this year of the ASEAN Economic Community (AEC) will make Vietnam’s property sector more attractive to foreign investors from other ASEAN countries, particularly in the segments of industrial property, retail, apartment and office for lease.

CBRE predicted the AEC would breathe new life into the office and retail segments in member states. Supplies and demands of industrial and office space in most ASEAN markets are forecast to pick up in the short and medium terms as there would be more small and medium enterprises and multinationals in the region.

According to FIA, as of June 2015, eight out of 11 ASEAN countries had invested in Vietnam. Companies of Singapore, Malaysia, Thailand, Brunei, Indonesia, the Philippines, Laos and Cambodia had pledged a total of US$54.6 billion in 2,630 projects which are still valid. These projects and their registered capital accounted for 14.2% and 21.7% of the country’s total figures respectively.

The most attractive sector for ASEAN enterprises was processing-manufacturing with 1,009 projects (38%) worth US$22.2 billion (40.8%) and property sector came in second.

FIA said the AEC establishment as well as investment and trade agreements of the region would help the property market attract more FDI.

SGT