New players in real estate market
Many cement and steel manufacturers, civil engineering and agricultural companies have added real estate development onto the lists of their strategic business fields. They have become new but powerful players in the market.
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Thuy recently bought Kim Lien Hotel, covering an area of 3.5 hectares in an advantageous position in Hanoi. The businessman has signed a cooperation agreement with Hyatt Group on the development of a 5-star hotel worth US$165 million in the central business district of Hanoi.
Thai Group also develops Enclave, a high-end resort covering an area of 350 hectares in Phu Quoc, Kien Giang province.
Prior to that, the group once poured money into some small-scale projects in the provinces of Ha Tinh, Hung Yen and Ha Nam.
Hoanh Son Group in Ha Tinh province, which specializes in civil construction, infrastructure and port development has also announced the investment of VND400 billion to become Cao Su Sao Vang Company’s investment partner for a project on Nguyen Trai Road in Hanoi. This would be a complex of shopping mall, service area, office building and high-end apartments for sale and lease.
Big conglomerates in the south also rush to pour money in the real estate sector. With the establishment of a subsidiary in charge of investment in the real estate sector with charter capital of VND1 trillion, the HCMC Infrastructure Investment JSC (CII) has also jumped on the bandwagon. It has announced a plan to invest in three large projects in HCMC.
Duc Long Gia Lai, a company with investment projects in agriculture, energy and electronics production, has also decided to add real estate to the list of its business strategies in the restructuring process.
The company plans to kick off three large projects this year in the districts of 7, 8 and Binh Tan, capitalized at VND4 trillion in total, which, once completed, will provide 2,500 apartments.
Thaco Group, an automobile manufacturer, has also joined the real estate market. It poured trillions of dong into the Sala urban area development project in Thu Thiem, HCMC through Dai Quang Minh JSC, a subsidiary.
Le Phuoc Vu, president of Hoa Sen Group, some years ago decided to quit the real estate market to gather his strength on steel manufacturing. However, he has made a comeback to the market, kicking off the construction of a 4-star hotel in Yen Bai province with investment capital of VND1.2 trillion.
