Investors see "golden chances" in real estate business (05/01)
06/08/2010 - 55 Lượt xem
One of the reasons for the increasing dynamic development of the market was the State's promulgation of documents to guide the implementation of the Common Investment Law and the Housing Law, creating a clear legal framework for the sector, which foreign investors have been waiting for.
Another reason was the country's accession to the World Trade Organisation (WTO) that flung open the door for its finance market - an important gate way for foreign investors to participate intricately in the real estate business.
Deputy Minister of Natural Resources and Environment Dang Hung Vo joined many economic experts in expressing optimism for the real estate market in 2007 after a two year freezing period.
The Deputy Minister explained that the newly felt optimism was based on several factors such as Viet Nam's WTO accession, the US' ratification of Permanent Trade Normal Relations (PNTR) with Viet Nam and a record of official development assistance (ODA) capital pledged by international donors for 2007. He said that these factors enhanced Viet Nam's attractiveness for foreign investment, including investment in real estate.
Vo also said the large participation of foreign investors would help reduce the prices of houses in Viet Nam, which in recent times, have exceeded the financial capabilities of most of the population.
To deal with this problem, experts said the State should have incentives for guiding foreign investors in building houses for low-income and poor people. A stable legal foundation with transparency in real estate-related finance and equality in rights and obligations for both local and foreign investors, as well as priorities for build-operate-transfer (BOT) projects to develop social and technical infrastructure are among what is most needed.
Foreign investors' interest in Viet Nam's real estate market has been rising reflected in major projects in Ha Noi and Ho Chi Minh City invested by developers from the Republic of Korea (RoK), Japan, Singapore and Malaysia.
The Tay Ho Tay (Western West Lake) Co. Ltd from the RoK plans to start building a 314 million USD urban area in Ha Noi this year.
Construction of the project, which includes 4,800 apartments and villas, is scheduled to be completed in 2013.
The Ho Tay urban area is expected to become a new and modern centre of Ha Noi alongside the 300 ha Nam Thang Long urban area.
In Ho Chi Minh City, Singaporean Keppel Land invested 35 million USD in the construction of the Saigon Riviera urban area and 130 million USD in the Saigon Sports City.
CapitalLand, one of the region's largest real estate investors, also from Singapore, is preparing to set up a joint venture with two Vietnamese companies to invest 40 million USD to build an apartment building on an area of 2.3 ha.