Singapore businesses eye Vietnamese property market

VOV.VN - Vietnam remains a key market for Singaporean real estate investors, with these financiers taking the lead in terms of the development of housing, urban, and industrial property projects throughout the country.

A host of investors, including Sembcorp Development, CapitaLand, Keppel Land, Frasers Property, and Mapletree have been doing business in the Vietnamese market over the past 20 years.

Prominent among the projects is the Vietnam - Singapore Industrial Park (VSIP), a joint venture taking place between a Vietnamese enterprise, Becamex IDC, and a consortium of Singaporean investors led by Sembcorp Development Group.

Originally established in 1996, VSIP has gone on to provide production infrastructure for 880 foreign clients from 30 countries and territories with a total investment of US$14 billion while simultaneously generating jobs for 270,000 employees both in the country and abroad.

Furthermore, Singaporean investors have recently made efforts to expand investment in the fields of warehousing, logistics, and real estate brokerage in the nation.

Frasers Property Vietnam represents a typical investor, having recently unveiled its latest industrial development project in the southern province of Binh Duong.

This move has seen the group rush to complete and put into operation an approximately 40,000 square-metre warehouse based in the Binh Duong Industrial Park (BDIP) by 2022.

Moving forward, it is anticipated that the BDIP will become the ideal industrial and logistic hub for foreign direct investment and leading national enterprises. 

Capitaland, a leading residential real estate developer, and Emergent Vietnam Logistics Development Pte, have both also unveiled plans to invest in the industrial real estate and the Vietnamese logistics sectors.

May saw the Emergent Vietnam Logistics Development Pte grant a license to develop a US$34.4 million logistics centre in Binh Duong.

The project is expected to provide logistics, storage, and warehousing services, along with warehouse rental for foreign clients in the near future.

Alongside investing in real estate projects, Singaporean investors have recently expanded their investment portfolio into the brokerage field.

Last year saw APAC Realty, a leading real estate services provider that holds the exclusive ERA regional master franchise rights for 17 countries throughout the Asia-Pacific region, invest US$1.1 million into ERA Vietnam.

Moreover, APAC Realty also committed two loans with preferential interest rates equivalent to US$2.2 million for its partner.

ERA Vietnam is an American real estate brokerage brand that entered the Vietnamese real estate market in the form of a franchise in July, 2017.

Until now, the enterprise has established a presence in four provinces and cities, with its head office based in Ho Chi Minh City and three additional branches in Da Nang, Binh Duong, and Da Lat.

APAC Realty initially chose to invest directly into ERA Vietnam as a means of increasing its presence in the Vietnamese market, particularly as the country boasts the third largest population in Southeast Asia.

Previously, Real Estate Technology Company PropertyGuru and Real Estate Brokerage PropNex were also keen on the Vietnamese property market.

Mời quý độc giả theo dõi VOV.VN trên

Related

Property prices spike despite COVID-19 pandemic
Property prices spike despite COVID-19 pandemic

Vietnam's real estate prices have increased rapidly in the past two years despite the difficulties caused by the COVID-19 pandemic, which reduced the incomes of the majority of the population, experts have said.

Property prices spike despite COVID-19 pandemic

Property prices spike despite COVID-19 pandemic

Vietnam's real estate prices have increased rapidly in the past two years despite the difficulties caused by the COVID-19 pandemic, which reduced the incomes of the majority of the population, experts have said.

Industrial property segment sees rising FDI despite new COVID-19 outbreak
Industrial property segment sees rising FDI despite new COVID-19 outbreak

Despite a new outbreak of COVID-19 in Vietnam, the industrial property segment saw positive signs with new industrial zones established and key industrial projects beginning operations, according to a report by Savills Vietnam.

Industrial property segment sees rising FDI despite new COVID-19 outbreak

Industrial property segment sees rising FDI despite new COVID-19 outbreak

Despite a new outbreak of COVID-19 in Vietnam, the industrial property segment saw positive signs with new industrial zones established and key industrial projects beginning operations, according to a report by Savills Vietnam.