Japan Firms Rush to Tap in Vietnam’s Real Estate Market

A large number of Japanese realty businesses are flocking to Vietnam to tap in the increasing demand for housing in the country.


               Japanese investors are flocking to Vietnam's real estate market. (Photo: Internet)

Japanese investors are partnering with Vietnamese real estate developers to tap in the growing demand for home here, especially the affordable segment.

Sanyo Homes Corporation has been the latest Japanese to join this promising market. It has entered a partnership with Vietnamese developer Tien Phat Corp., a subsidiary of Hoa Binh Construction & Real Estate Corporation (HBC), to develop a $25-million project in Ho Chi Minh City.

The 22-story high-end apartment building covering an area of 4,063 square meters is Sanyo Homes Corporation’ first step in Vietnam. The Japanese firm plans to pour $10 million into this project.

Under an agreement, the two firms will team up in future projects and Tien Phat Corp. will help Sanyo Homes further penetrate into Vietnam’s promising realty market.

Japanese investors have shown particular interest in Vietnam’s real estate industry. They have formed partnerships with local businesses to carry out projects.

Before Sanyo Homes, Creed Group and Vietnamese partners An Gia Investment Company and Phat Dat Corp. poured $500 million into a residential project in HCM City’s District 7. Phat Dat paid 50% of the project’s capital while Creed Group and An Gia hold 25% stakes each.

A consortium of Hankyu Realty Co. Ltd, Nishi-Nippon Railroad Co. Ltd and Nam Long Investment Corp., an affordable house developer in Vietnam, are developing a project in HCM City’s District 9. The project is the second that the three companies have jointly developed.

Toshihiko Muneyoshi, chairman of Creed Group, was quoted by the Dau Tu (Investment) newspaper as saying that the housing demand in Vietnam is huge, given its young population and their growing income.

The Vietnamese market now is similar to Japan’s more than 30 years ago, and the middle segment is poised to see strong growth. Therefore, the firm is seeking more partnerships in this segment, said Toshihiko Muneyoshi.

Tuan Minh / BizLIVE