Japanese firms flock to Vietnam’s real estate market hinh anh 1Creed Group, An Gia and Phat Dat companies ink the investment cooperation agreement on the River City project in March 2016 (Photo: VNA)

Hanoi (VNA) – The property market in Vietnam has seen an influx of Japanese capital recently, with many projects carried out under partnerships between the countries’ enterprises.

Japan’s Sanyo Homes Corporation has announced that it will invest in the Ascent Lakeside project in District 7 of Vietnam’s Ho Chi Minh City.

Le Quoc Duy, Chairman of the Board of Directors of the Tien Phat Real Estate Investment Corporation, said his firm will sign an agreement on the high-end apartment project in mid-May.

Sanyo Homes will contribute about 50 percent of the project’s total investment. This is the first time it has operated in Vietnam’s property market.

Earlier, Creed Group and Vietnamese partners An Gia Investment company and Phat Dat Coproration poured 500 million USD into the River City project in District 7. Phat Dat paid 50 percent of the project’s capital while Creed Group and An Gia took 25-percent stakes each.

River City is expected to have about 8,000 apartments sold at 1.3 billion VND (58,360 USD) and above.

Creed Group Managing Director Toshihiko Muneyoshi said demand for housing in Vietnam is high due to the young population and rising incomes.

The Vietnamese market now is similar to Japan’s more than 30 years ago, and the middle segment will grow strongly. Therefore, the firm plans to focus on this segment and is seeking more partnerships in Vietnam, he said.

Meanwhile, Hankyu Realty Co. Ltd and Nishi-Nippon Railroad Co. Ltd have spent hundreds of billions of VND on a 50-percent stake in the Fuji Residence project in District 9, HCM City.

The project, initiated by Nam Long Investment Corporation, is the second that the three companies have cooperated in. The first smaller project, Flora Anh Dao, also in District 9 has sold 85 percent of its apartments.

Nguyen Thanh Huong, Nam Long director, said her company will continue to work with Japanese partners on other projects in the near future.

Toshihiro Matsuo, General Manager of Housing Business Department of Nishi-Nippon Railroad, said that they are interested in affordable housing and see this segment’s potential in Vietnam.-VNA