Vietnam's Property Market Remains Hot for Foreign Investors

Vietnam’s real estate market has been strongly developing and attracting more and more foreign investors, Japan’s Asahi newspaper said March 20 in an article about the Vietnamese economy.

 

Demand for housing, offices and restaurants for lease in Vietnam will rapidly increase as the country’s economy is expected to achieve an average annual growth rate of about 8 per cent over the next decade.

 

The country’s entry into the World Trade Organisation (WTO) provides a driving force for further economic development, the paper said.

 

The joint-stock IndoChina Land company, which has invested USUS$1 billion in Vietnam’s property market in the past ten years, plans to inject a same amount of capital into new projects in the future.

 

IndoChina Land’s office manager Rick Mayor-Smith said the company plans to invest in building offices and apartment buildings in the next 18-24 months. Vietnam’s high economic growth rate has helped accelerate the development of the country’s real estate market, he said.

 

Meanwhile, Singapore’s third largest property developer Keppel Land has established a joint venture in Vietnam to build 1,600 apartments with total investment capital of USUS$106 billion. Banyan Tree Holdings intends to invest USUS$270 million in building a resort in central Danang city.

 

The paper quoted Peter Mitchell, Chief Executive Officer of the Asian Public Real Estate Association, as saying that Vietnam is a symbol of growth and a motivating force for other Asian economies.

 

The article also addresses several difficult issues, including corruption, the incomplete legal framework, and limited official information access, which have hindered foreign investors entering the country. (Vietnam & World Economy)