The Tan Binh Industrial Park in HCM City. (Source: sggp.org.vn) Hanoi (VNS/VNA) - Investors are looking for industrial and logistics assets throughjoint ventures with local industrial developers and/or acquisition of land andoperating real estate, Jones LaSalle Vietnam Co Ltd (JLL Vietnam) said in astatement.
The company also saidmergers and acquisitions (M&A) in real estate is a bright spot in themarket because the manufacturing trends is shifting away from China to theSoutheast Asia region and will continue to benefit the whole region, includingVietnam.
The lack of highspecification, modern logistics warehouse space, and strong demand fromregional occupiers are supporting potential growth.
Quality of the assets,rental growth, deal size and remaining land tenure are the key crucial factorsfor investors to determine their investment decisions, said Nguyen Thi VanKhanh, senior director, Capital Markets, JLL Vietnam.
“We expect foreign investors to continue showing keen interest andstrong commitment in Vietnamese real estate market, and the market still hasthe potential for growth,” Khanh said.
Although the M&Aactivities might potentially occur at slower pace and lower frequencies inremaining two quarters due to lack of readily available projects to invest, theGovernment’s existing policies will improve transparency in the market. Thiswould ensure Vietnam’s competitiveness and attract even more investors fromthe region, according to JLL Vietnam.
With readily availableland areas to develop residential and commercial projects harder to find in thecentral business districts (CBD) or in well-known areas in the city, JLL said anumber of investors and developers are looking to expand their footprinttowards other neighbouring provinces.
Notable developers include Novaland with its Aqua City townshipproject in Long Hung, Dong Nai province, Nam Long with acquisition of Dong NaiWaterfront in the early of this year and its last year’s acquisition of DaiPhuoc Paragon, a 45ha township located in Nhon Trach, Dong Nai province andKeppel Land’s acquisitions of three land parcels in HCM City recently.
Although there are anumber of new developers and investors who are looking at these emerging areas,JLL said that the majority is still dominated by local or foreign groups whohave been long-established in Vietnam.-VNS/VNA
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