According to Mr. Than Thanh Vu, President of Sao Khue Company, the information is authentic, because his company recently organized a delegation of Vietnamese real estate companies coming to Japan to promote investment.
Through contacts, seven Japanese investors expressed interest in luxury hotels, commercial centers, office buildings, luxury apartment projects … in big cities such as Ho Chi Minh, Ha Noi. The Sumitomo Group plans to build an office building with an investment capital of about US $ 100 million, or Toshin Group wants to develop a US $ 200 million investment project.
Targeted by Japanese investors are projects in Ho Chi Minh City, Hanoi City …
Mr. Le Hoang Chau, Chairman of the HCM City Real Estate Association, said that investors in Japan could be spent US $ 2 billion into the Vietnamese real estate market, but it’s symbolic meaning because there aren’t signed contracts or specific co-operation, but a good sign that shows a new development of the market.
“Resources and management skills of many local real estate companies have been improved compared to before and this is the time for them to call and attract foreign investment,” said Chau.
Mr. Chau also said that this is a good time to call for investment capital from Japan, because apart from the fact that the two countries have become comprehensive strategic partners, there are many similarities in terms of culture and geography. …, it’s time for businesses of the two countries to find partners to cooperate. While Vietnamese businesses need to find capital for large projects (according to current regulations, projects with an area of over 20 hectares, the investor capital is 15% – PV) and find professional partners to manage projects, Japanese investors tend to find partners to invest abroad in the field of real estate.
In fact, the trend of Japanese businesses investing overseas in the real estate sector, including Vietnam, is not new. At the Mergers and Acquisitions Forum (M&A) Vietnam 2016 organized by the Investment Review, many experts, including representatives of leading Japanese consulting firm, forecasted this trend.
According to Mr. Masataka Sam Yoshida, Senior Managing Executive Officer from Recof Group, representative of Vietnamese Market, M & A activities of Japanese business in Vietnam market will continue to grow in 2015, 2016, after when it declines in 2014 and tends to move towards real estate.
“This is a field which about 20 years ago, Japanese investors are not interested,” said representative of Recof, and he also said that Japanese business not only pays attention to real estate market in Ho Chi Minh City, Ha Noi City but also directed to a number of other large cities.
As a person with nearly 20 years as a consultant, including many M & A deals, Mr. Than Thanh Vu said that it is not easy for Japanese investors to find the available site in the central area of Hanoi and Ho Chi Minh City for investment due to increasingly limited land fund and many investment procedures. Therefore, the Japanese businesses will select M & A option when investing in real estate in Ho Chi Minh City and Hanoi in the future.
There are a number of luxury apartment projects, hotels … in these two cities are recommended an advice by Japanese companies to buy back.
Mr. Le Hoang Chau also said that with the tendency to invest in real estate through M & A, Vietnamese businesses benefit in many ways. However, reputable Japanese investors will consider carefully before investing and the biggest barrier is the high transparency requirements of these businesses. In particular, they will not accept the bribe as the way many domestic real estate businesses did.
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