Leaders of Bejaya Land Berhad receive
investment license for its VIUT project.

Despite global economic slowdown and domestic high inflation, Vietnam’s real estate market remains attractive to foreign investors with a series of large projects licensed recently.

In early July, the Ho Chi Minh City People’s Committee granted licences to two Malaysian-invested projects totaling up to US$3.62 billion.

A Vietnam International University Township (VIUT) project will be developed by Berjaya Leijaya to the tune of US$3.5 billion. It will form part of the city’s northwest metropolitan area.

The other US$120-million project, funded by Aseanna Properties, is designed to build the Horizon Place urban centre.

Another noteworthy project recently licensed is a US$4.3 billion tourism complex in central Phu Yen province. Funded by Brunei’s New City Properties Development Co. Ltd., the project will feature luxury resorts, 4,300 five-star and 8,900 four-star hotel rooms, 160 high-grade villas, and a 36-hole golf course.

Hyatt Regency resort in Da Nang under construction.

Indochina Capital previously broke ground for a number of large projects, including the US$100-million Hyatt Regency resort in the central city of Da Nang.

Indochina Capital Co-Chairman and CEO Peter Ryder said Vietnam’s property market is expected to become more appealing in the long term due to its political stability, young population, reasonable urbanisation, and the government’s openness to businesses.

Property developers from Middle East are also eying the Vietnamese market. Leaders of Sovereign Hospitality Holdings recently visited Vietnam to explore investment opportunities in finance, real estate and tourism, with the two latter fields considered the group’s top priority.

During his trip to the country in mid July, Israeli billionaire Issac Tshuva, President of the Elad group, spoke of his desire to build a seven-star hotel in Hanoi.

Controlled inflation, larger inflow of foreign investment, recovery of the stock market and the issuance of a decree guiding the Real Estate Trading Law are seen as positive factors that will fuel the property market in the near future.

According to the Ministry of Planning and Investment, foreign investors poured around US$13 billion into property projects in the country in the first half of the year, making up 40% of the total amount of foreign investment. (VNA)