Canadian Investors Invest in Binh Dinh Province

Seldat Vietnam Co., Ltd (coming from Canada) went to Vietnam to set up business by implementing the garment factory project.

Department of Planning and Investment of Binh Dinh province has just granted certificate of investment registration for Seldat Vietnam Co., Ltd (investors from Canada) to invest in Seldat Vietnam garment factory project in An Hoa village, Nhon Khanh commune, An Nhon town, with a total investment of nearly 1.2 million USD.

Accordingly, the project will invest 5 production lines with designed capacity of 2 million products/year, products are mainly exported to the US market. The project is built on an area of 2,440m2 and is expected to be completed and put into operation in quarter II/2017.

The project is licensed within the first days of the year so that it can be considered a meaningful gift for the efforts of the Binh Dinh province in attracting investment. BinhDinh province has consistently implemented reforms, simplification of administrative procedures, thereby contributing to create an open investment environment, attracting investors to come to the province. Up to date, Binh Dinh has 69 FDI projects, total registered capital of 783 million USD, mainly are investors coming from potential economies in the world like the US, China, Japan, France, Korea, Singapore, Malaysia, Thailand….

In 2017, in order to continue to be an attractive destination for investors, besides the administrative reform, leaders of Binh Dinh province will strengthen dialogue with businesses in order to listen to their desire, disassemble any difficulties and obstacles to improve the investment and business environment, promoting economic development of the locality.

Currently, the Department of Planning and Investment of Binh Dinh is finalizing the draft scheme for implementation of the model “one door, one door interconnection”, preparing to submit to the leaders of Binh Dinh province for consideration and promulgation. At the same time, the E-Regulations project (electronic regulation system). The website has been completed, fully published the procedures relating to foreign investment so that investors can access and search for information about the investment procedures when investing in Binh Dinh.

According to Director of Investment Promotion Centre (IPC) of Binh Dinh, Binh Dinh province’s goal is to continue to invest in development of Nhon Hoi Economic Zone and industrial zones as planned for these places to become seeds of the province’s growth in the sectors such as industry, tourism services, urban; create motivation and basis so that until 2020, Binh Dinh province can basically become developed province of the central region.

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Japanese investors ready to pour $2 bln into Vietnam’s real estate market

Property firms are confident of the growth fundamentals in Vietnam.

Japanese real estate companies are looking outside the domestic market for a potential investment destination, and Vietnam is looking like an ideal candidate with annual returns of up to 20-25 percent.

Vietnam's Real estate

Japanese companies are planning combined investment of up to $2 billion in the Southeast Asian country, said Than Thanh Vu, president of a merger and acquisition consulting company.

A large number of Japanese groups, including Sumitomo, Sanyo Homes, Daiwa House, Aeon and Toshin, are searching for large scale mixed-use developments comprising apartments, serviced apartments, retail and office space in major cities like Hanoi and Ho Chi Minh City, Vu said, citing the $100 million office building project funded by Sumitomo as an example.

Investor interest is being fueled by Vietnam’s economic growth, which has on average been above 5 percent since 1999, Vu continued.

There are other factors driving the inflow of Japanese investment into Vietnam’s property sector. Japanese investors want to tap into the potential of Vietnam’s growing population which will lead to a rapidly expanding demand for real estate. With their domestic market shrinking as population is aging rapidly, Japanese companies are increasingly looking at Vietnam as a promising market.

Japanese investors are entering the local market through mergers and acquisitions, Vu said, explaining that as long-term investors, Japanese companies prefer acquiring stakes in local property developers gradually over time so that they can gain a better understanding of the local market. Mergers and acquisitions also allow foreign investors to quickly gain a foothold without going through the massive amount of complicated paperwork involved in the real estate sector.

Industry experts forecast a surge in mergers and acquisitions (M&As) in the real estate inHanoi and Ho Chi Minh City.

“Japanese companies are financially strong and vastly experienced in property developments, so it will be easy for them to take the projects at some of the most sought-after locations from local developers,” said Vu, adding that given extremely low interest rates and limited economic growth in Japan, these investors are sitting on huge cash piles and have little option but to invest overseas.

Japanese investors have just laid their eyes on Vietnam’s real estate market, said Masataka Sam Yoshida, chief executive of Tokyo-based Recof, which is mainly involved in M&A consulting.

In the past, Japanese companies were very cautious about making real estate deals in Vietnam due to the high risk of speculation, lack of transparency and information, Masataka explained.

But things have changed, he said.

One of Japan's largest builders, Kajima Corporation, has formed a joint venture with Indochina Capital to channel funds worth $1 billion into property developments in Vietnam over the next 10 years. The 50:50 partnership has plans to acquire several local projects in the pipeline.

Vietnam is currently viewed among the top markets in Asia for foreign direct investment, said Keisuke Koshijima, market development executive at Kajima, adding that the company has identified the Southeast Asian country as the next key driver for its growing business in the region.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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Ho Chi Minh City ranked among top 5 real estate markets in Asia-Pacific

Investors expect annual returns of 20-25 percent.

Ho Chi Minh City is in the top five of the Asia-Pacific region for real estate investment and development prospects, with annual returns expected to be up to 25 percent, according to a new report.

Emerging Trends in RealEstate Asia Pacific 2016, jointly published by the Urban Land Institute and consulting firm PwC, has ranked the city fifth for investment and fourth for development. Tokyo is at the top, followed by Sydney and Melbourne. Osaka and Ho Chi Minh City are neck and neck.

The Vietnamese city has emerged as one of the most promising markets in the region over the past two years, jumping from the 19th place in 2014 to one of the top five this year.

Foreign investors, mainly from Japan, South Korea and Singapore, are interested in the city's property market on expectations of an annual return of between 20 and 25 percent, according to the report.

The report also attributes the city’s rise as an attractive destination to the government’s efforts to stabilize the local currency, control inflation, ease property lending and improve market access for foreigners.

Global investors prefer entering Vietnam’s real estate market through mergers and acquisitions. They are laying eyes on a wide range of projects, from beach resorts, serviced apartments, residential buildings to hotels, mostly in the three major cities Hanoi, Ho Chi Minh City and Da Nang.

For instance, Singapore-based investment fund Frasers Centrepoint Limited has acquired a 70 percent stake in a luxury residential apartment project from a local realestate developer. The $100-million project, namely G Home, covers a one-hectare area in downtown Ho Chi Minh City.

Emerging Trends is based on the opinions of 343 internationally renowned real estate professionals, including investors, developers, lenders, brokers and consultants.

ANT Consulting is here to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist market entrance, and ensure efficient business start-up operation.  Our services are as following:

• Advisory
• Market Entry
• Tax Advice
• Legal Advice

We strive to save your cost by guiding you towards economical solutions that comply with local legislation and procedures. We support you through early logistic solutions and carry you through as your business grows.  We aim to bridge the gap between international best practices and local cultures and assist foreign companies and organizations entering Vietnam market to overcome commercial and regulatory issues.

We could be reached at email: ant@antconsult.vn or tel: +848 3520 2779 .  To learn more about us, please visit www.antconsult.vn

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