In early July, the Ho Chi Minh City People’s Committee licensed two Malaysian-invested projects totaling up to US$3.62 billion.

Of them, US$3.5 billion will be used on the Vietnam International University Township project developed by Berjaya Leijaya, which will form part of the city’s northwest metropolitan area.

The other US$120 million project, funded by Aseanna Properties, is designed to build the Horizon Place urban centre.

Another noteworthy project recently licensed is a US$4.3 billion tourism complex in south central Phu Yen province. Funded by Brunei’s New City Properties Development Co. Ltd., the project will feature luxury resorts, 4,300 five-star and 8,900 four-star hotel rooms, 160 up-market villas, and a 36-hole golf course.

Indochina Capital has previously been involved in a number of large projects, including the US$100 million Hyatt Regency resort in the central city of Da Nang.

Indochina Capital’s Co-Chairman and CEO Peter Ryder said that Vietnam’s property market is expected to become more appealing in the long term due to its political stability, young population, reasonable urbanisation and the government’s openness to businesses.

Property developers from the Middle East are also keen on the Vietnamese market. Leaders of Sovereign Hospitality Holdings recently visited Vietnam to explore the investment opportunities in finance, real estate and tourism, with the latter two fields considered the group’s top priority.

In addition, Israeli billionaire Issac Tshuva, President of the Elad group, spoke of his desire to build a seven-star hotel in Hanoi during his trip to the country in mid July.

Controlled inflation, a larger inflow of foreign investment, the recovery of the stock market and the issuance of a decree guiding the Real Estate Trading Law are considered positive factors which will fuel the property market in the near future.