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Viet Nam Today
 
Oil billionaires interested in Vietnam’s real estate
11-22-2007, 10:39 am

The group plans to invest US$65 million to build a 150-room hotel and 15 villas on 15.4ha of land, which are scheduled to be put into use in 2011, named Raffles Resort.
 
Furama Resort in Da Nang
 

The logistic sector is also attractive to investors from the Middle East. After merging with Britain’s P & O Ports group, the Dubai Ports World group has officially entered Vietnam through a port project in HCM City with a total investment of $230 million.

 

In addition, the Sama Dubai group is negotiating the construction of the Cua Dai bridge in the central province of Quang Nam and has expressed the wish to participate in the Binh Quoi – Thanh Da urban area project in HCM City.

 

“Around 20 investors from Dubai, Qatar and Bahrain are seeking opportunities of investment in Vietnam. They not only target to the logistic industry like container ports but also seek investment opportunities at new residential areas in Hanoi, HCM City and even in the central region,” said Marc Townsend, General Director of CB Richard Ellis, a real estate service company.

 

According to CB Richard Elllis, investors from the Middle East are big groups which have implemented huge real estate projects in their countries and are expanding investment to Asian countries.

 

For example, the Kingdom Hotel Investments is purchasing a series of hotels, resorts, and luxurious apartment buildings in Thailand, the Philippines and China.

 

“Oil kings are targeting China and Singapore but they mainly focus on the Vietnamese market because this is a new and potential market,” said Mr Marc Townsend.

 

This is also confirmed by prince Alwaleed bin Talal bin Abdulaziz Alsaud in a press release issued after his group bought the tourism project in Da Nang: “Vietnam is one of the fastest developing economies in Asia and ranks the sixth for tourism development according to forecast of the World Travel and Tourism Council. With the fast growth of tourism, entertainment and business, we will build a high-class hotel here”.

 

According to Marc Townsend, oil billionaires are very serious in choosing Vietnam as a destination and they are surveying and negotiating with localities and the Vietnamese government. However, as projects are in negotiation process, their details can’t be revealed. In addition, oil billionaires can’t easily obtain projects.

 

“This is similar to Malaysian investors. Groups like Gamuda Land, Berjaya and Sertia have signed memorandums of understanding on investment in big real estate projects in Hanoi and HCM City but so far none of them have been implemented because negotiation and investment formalities are still being performed,” Mr Marc Townsend said.

 

While investors from the Middle East, Singapore, Japan and Malaysia are seeking opportunities, Korean investors are emerging as the leading investor in the real estate market of Vietnam and they will still be at this position in the future when new projects are signed.

 

Big names in this field are Posco E & C with the $212 million Bac An residential area project, Kumho with $230 million Asiana Plaza Saigon project, the West West Lake Co, Ltd with $314 million West West Lake residential area project and Booyoung with $171 million apartment project in the northern province of Ha Tay. (VN Investment)



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Other News:
 » HCM City draws 1.6 billion USD in foreign investment | 10-24-2007 |
 » New visa policy makes crossing the divide easier | 10-16-2007 |
 » Vietnam to be amongst the World’s preferred Tourist Destinations | 10-16-2007 |


 
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