Vietnam's property market is attractive to both eastern and western investors (Photo: VNA) Hanoi (VNA) – While Asian investors are dominating real estate investmentand mergers and acquisitions (M&As) in Vietnam, many European and Americanfirms have chosen to invest in listed property companies, according to aspecialist of Savills Vietnam.
Over the last three years, the Vietnamese markethas recorded strong investment from Singapore, Hong Kong (China), Japan and theRepublic of Korea.
Su Ngoc Khuong, Investment Director of SavillsVietnam, noted more investments and M&As conducted by Asian investorscompared to European and American companies.
Foreign investors’ investment targets andmethods are affected by many factors, including cultural differences andgeographical distance. Meanwhile, property investment is greatly influenced bylocal regulations, especially legal affairs, which may be barriers to Europeanand American investors.
However, that doesn’t mean European and Americaninvestors ignore the Vietnamese market, he noted, elaborating that many of themhave engaged in the securities sector. Few have directly invested in propertyprojects or companies but the majority acted as investors of listed businesses.
[Infographics: Property market sees increase of buyers in 2017]
Notably, they have also focused on providingreal estate-related services. Many companies managing and operating offices,resorts, hotels, serviced apartments and malls or those providing investmentadvice and market research are from Europe and America, Khuong said.
European and American investors are still takingpart in Vietnam’s property market by different means, he said, adding that“they cannot rule such an attractive and potential market like Vietnam out oftheir investment map.”
Some foreign investors said a real estate marketwith a large young population is a very attractive opportunity. Big cities likeHanoi, Ho Chi Minh City, Da Nang and Nha Trang are major destinations which areattracting more young people who tend to live separately or come to start theircareers, leading to a surge in housing demand.-VNA
VNA
