Want to be in the loop?
subscribe to
our notification
Business News
DEVELOPERS HUNT FOR LAND AVAILABILITY
Real estate businesses are on the hunt for land across the country to develop urban and resort projects.
Last week, the Department of Planning and Investment of Long An province in the Mekong Delta region announced that a joint venture between Vinhomes and Vietnam Investment Group, which registered to implement the new Phuoc Vinh Tay urban area in Can Giuoc district.
This project is expected to be located in a 1,000-hectare plot and will have a population of about 90,000 people. Long An also approved Green City Development, a subsidiary of Vinhomes, as an investor in the Duc Hoa-Hau Nghia urban area project, with registered capital of more than $1.15 billion.
Novaland also proposed investing in a tourism-resort complex of nearly 450ha in Mui Yen of the south-central province of Binh Thuan, with expected capital of $2.5 billion.
Meanwhile, many non-core real estate businesses such as steel manufacturers Hoa Sen and Hoa Phat, as well as “shrimp king” Minh Phu, are entering real estate to prepare for a new market cycle.
Last month, Hoa Sen Group established Hoa Sen Saigon JSC, which has a charter capital of $4.1 million, operating mainly in real estate in Ho Chi Minh City. After establishment, Hoa Sen announced that it was looking for assets worth up to $125 million to develop offices, a commercial centre, and housing.
The shrimp-farmer Minh Phu Group also announced plans to expand into real estate by adding the real estate business into its portfolio of business. Last week, it announced plans to build social housing projects in the southernmost province of Ca Mau, where its factories are based. With investment of more than $26.2 million, the project is expected to provide accommodation for about 4,000 people.
With Hoa Phat Group returning to the real estate race in early 2023, it has taken steps to collect land in many localities. This includes two urban projects in the northern provinces of Hung Yen and Phu Tho worth over $415 million. Apart from those, Hoa Phat has proposed to invest in hundreds of hectares in Khanh Hoa, Quang Ngai, Quang Tri, Hai Duong, Can Tho, Thua Thien-Hue, Phu Yen, and Dak Nong provinces.
TCO Holdings JSC, which operates in the transport sector, also plans to enter the real estate market. Last month, TCO approved a comprehensive restructuring, including renaming and redirecting operations. Thereby, the business will focus on developing transportation, logistics, agriculture, food and its supporting industries, and real estate.
TCO aims to expand into developing industrial and agricultural real estate and carrying out potential merger and acquisition deals. It has also established TCO Real Estate JSC with a charter capital of $4 million.
Phenikaa Group, through Nam Hung JSC, also entered the field in February when launching the Endless Skyline Westlake office, hotel, and luxury apartment complex project in Tay Ho district in Hanoi.
The project has 27 floors and provides over 350 serviced, residential, and hotel apartments to the market. Phenikaa acquired the Endless Skyline Westlake project from Song Kim Company in 2020.
Real estate expert Tran Khanh Quang said, “Up to 95 per cent of businesses are thirsty for money, while prices of land are continuously decreasing. Therefore, this is an opportunity for investors who have financial sources in hand to jump in and acquire real estate projects. Notably, non-core businesses of real estate with strong financial potential are actively encroaching in the field, creating momentum for existing ones.”
Vo Hong Thang, director of Consulting Services and Project Development at DKRA Group, added that there would be investors leaving the market after a fierce competitive period, but others with potential would rise strongly and lead the development of real estate in the next stage.
“This makes the market more competitive and end-users such as house buyers will benefit with an increasing fund of houses and affordable prices,” Thang said.
Source: VIR
Related News
INDUSTRIAL PRODUCTION INDEX PICKS UP 5.4% IN APRIL
In January-April period, processing and manufacturing industries grew 4.9 percent and 5.1 percent respectively. Electricity energy production and distribution expanded 1.9 percent and 7.6 percent. Water distribution, sewage and waste water treatment grew by 1.5 percent and 9,7 percent. Mining decreased by 16,7 percent.
SBV SEEKS TO EXTEND DEBT RESTRUCTURING TO SUPPORT ECONOMIC RECOVERY
On May 15, the SBV announced it is seeking feedback on a draft amendment to Circular 02/2023/TT-NHNN, which is designed to help mitigate the rise in non-performing loans on banks’ balance sheets and to allow banks to continue assisting customers facing financial difficulties.
MULTINATIONALS KEEN TO THRASH OUT GLOBAL TAX ARRANGEMENTS
“Samsung has been aware of the GMT since its early days, and is eager to gain insights into the Vietnamese government’s support for businesses in line with its implementation,” she said at the event, hosted by the Vietnam Association of Foreign Invested Enterprises and the Washington-based International Tax and Investment Centre (ITIC).
CONSUMER CONFIDENCE IN ECONOMIC RECOVERY REACHES FIVE-QUARTER HIGH
Vietnam's GDP expanded by a healthy 5.66 per cent in the first quarter of 2024, marking the strongest first-quarter growth since 2020. While slower than the previous quarter's 6.7 per cent growth, this momentum indicates the country is on track to achieve its 2024 economic targets.
GREEN ECONOMY, DIGITAL ECONOMY BREAKTHROUGH OF VIETNAM-CHINA TIES: PM
Addressing a Hanoi seminar with 19 Chinese groups operating in green economy and digital economy, the leader said the meeting, the first of its kind, aims to materialise high-level perceptions reached by Party General Secretary Nguyen Phu Trong and Party General Secretary and President of China Xi Jinping, who agreed to build the Vietnam-China community with a shared future.
VIETNAM’S TEXTILE SECTOR BRINGS IN $37 BILLION IN FDI
The foreign-invested enterprises play an important role in the textile and garment sector, contributing 65 per cent to the sector’s total export turnover. Major investors mainly come from South Korea, Taiwan, Hong Kong, and China. Among them, South Korea is the largest foreign investor in Vietnam’s textile and garment sector.