Vietnam’s real estate sector has witnessed significant participation from Japanese investors through cooperation with Vietnamese businesses recently, promising to bring benefits to the real estate market.
According to real estate company Savills Vietnam, over the past years, Asian investors, including Japanese ones, were only involved in commercial real estate like commercial centres, serviced apartments or office buildings.
However, at present, these investors are increasing their activity in the residential segment due to the country’s young population and an increasing middle class, presenting an extremely attractive opportunity.
Presence of big Japanese investors
Shinichi Sakaki, deputy general director of the City Bureau, at Japan’s Ministry of Land, Infrastructure, Transport and Tourism, said the Japanese Government now has policies to support real estate developers promoting investment abroad.
In addition, Japan has the experience of developing large-scale satellite towns, so it is trying to ‘export’ that technology abroad.
One of the projects attracting not only investors but also the governments of Vietnam and Japan is the cooperation agreement for the development of Nhật Tân – Nội Bài, aiming to build a smart city north of the Red River.
The project was signed between Vietnam’s BRG Group Joint Stock Company, Japan’s Sumitomo Corporation Asia and Oceania Group and the People’s Committee of Hà Nội.
With total investment of nearly US$4.2 billion, this project is considered Japan’s largest foreign investment.
Prior to that, another large Japanese investor, Mitsubishi Corporation, had co-operated with Vietnamese property developer Bitexco, to develop 240 low-rise housing units and two high-rise condominiums among a…
