Want to be in the loop?
subscribe to
our notification
Business News
M&A CONTINUES TO DOMINATE REAL ESTATE MARKET
Within only three years, the corporation bought 25 projects, most of which were mid-tier and luxury apartments with prices ranging from VND28 million – 50 million (US$1,300 – 2,300) per square metre.
The projects prime locations have allowed Novaland to sell their products quickly.
Like Novaland, other groups like FLC, Vingroup, Him Lam, Dat Xanh and Hung Thinh Corporation have been involved in M&A deals.
FLC has a development strategy under which it directly invests in projects and also buys projects that have already been implemented.
Since 2013, FLC has spent hundreds of billion dong (tens of millions of US dollars) to buy projects in Ha Noi.
Meanwhile, after spending over VND10 trillion ($450 million) for M&A deals in 2014, Vingroup continued to look for projects in prime locations in big cities like Ha Noi, HCM City and Da Nang..
Besides big corporations, the market has also seen the recovery of many real estate companies thanks to their restructuring, especially for M&A purchases.
VID emerged as a new name in the real estate market by buying many projects.
Foreign investors have also been involved in M&A deals, as the Creed Group spent $200 million for stocks of An Gia Investment.
Warburg Pincus poured more than $100 million into Vingroups Vincom Retail and increased its investment up to $300 million in order to develop the biggest trade centre and shopping mall in Viet Nam.
The 2014-2015 period was considered a breakthrough for M&A activity in the real estate market.
The real estate market had been frozen for years, and as a result, many investors faced a financial crisis and had to sell many of their products.
This allowed corporations with strong financial resources to take advantage of the market, spend less money and earn high profits.
Despite this, many property projects still face financial difficulties.
"In HCM City right now, there are 40 -50 projects under construction but up to 700 others are at a standstill. Therefore, in the time ahead, M&A will be the most important strategy," Nguyen Van Duc, deputy general director of Dat Lanh Real Estate Company, was quoted as saying in the Thoi bao Kinh te Sai Gon (Sai Gon Times) newspaper.
"This year will be a boom time for M&A and more foreign investors coming to the field as Viet Nam is considered a promising market," Stephen Wyatt, general director of JLL Viet Nam, said.
Source: VIR
Related News
SPECIAL INVESTMENT PROCEDURE: A GAME CHANGER FOR HIGH-TECH PROJECTS IN VIET NAM
Viet Nam is poised for a regulatory shift with the upcoming implementation of a special investment procedure starting earlier next year. Starting from January 15, 2025, investors will be able to enroll for investment under special procedures as outlined in the Draft Decree detailing the Investment Law.
CLEAR LEGAL FRAMEWORK NEEDED TO UNLOCK DIGITAL ASSET POTENTIAL
The past decade has seen remarkable advancements in technology worldwide, particularly in digital assets such as blockchain, cryptocurrencies, asset tokenization and decentralized finance (DeFi). Once unfamiliar, digital assets have now become integral to the global financial system. Leading nations in this field not only to drive innovation but also establish a strategic edge in the global economy.
VIETNAM TO RANK AMONG TOP 15 LARGEST ECONOMIES IN ASIA BY 2025
Based on data from the International Monetary Fund (IMF), Seasia Stats predicts that Vietnam’s economy will reach $506 billion in 2025, earning it a place in the top 15 largest economies in Asia. “Vietnam is rapidly developing thanks to its manufacturing boom and strong foreign investment inflows,” Seasia Stats noted.
PM ORDERS SWIFT RESOLUTION OF CHALLENGES FOR RENEWABLE ENERGY PROJECTS
Prime Minister Phạm Minh Chính has laid stress on the need to complete the resolution of obstacles for renewable projects by February 2025 to prevent wastefulness, contributing to ensuring electricity for development.
VIETNAM'S GDP GROWTH WILL LEAD THE REGION IN 2025
A report published by Oxford Economics on December 16 noted that Vietnam's economy has been the region's outperformer in 2024, with full-year growth likely at 6.7 per cent on-year. The country is expected to continue to outperform its peers next year, growing by 6.5 per cent.
HANOI'S ECONOMY CONTINUES TO SUSTAIN GROWTH
Speaking at the opening session of the 20th meeting of Hanoi People’s Council on December 4, Deputy Chairman of Hanoi People’s Committee Ha Minh Hai reported that the capital’s economy has maintained high growth, with regional GDP rising by 6.12 per cent in the first nine months of the year, and expected to exceed 6.5 per cent for the full year.