Logo of Phnom Penh Post newspaper Phnom Penh Post - Investors look for M&A property in Vietnam

Investors look for M&A property in Vietnam

Content image - Phnom Penh Post
The Tân Bình Industrial Park in HCM City. Investors are looking industrial and logistics assets through joint ventures with local industrial developers and/or acquisition of land bank and operating real estate. Photo sggp.org.vn

Investors look for M&A property in Vietnam

Investors are looking for industrial and logistics assets through joint ventures with local industrial developers and/or acquisition of land and operating real estate, Jones LaSalle Vietnam Co Ltd (JLL Vietnam) said.

The company also said mergers and acquisitions (M&A) in real estate is a bright spot in the market because the manufacturing trends is shifting away from China to the Southeast Asia region and will continue to benefit the whole region, including Vietnam.

The lack of high specification, modern logistics warehouse space, and strong demand from regional occupiers are supporting potential growth.

Quality of the assets, rental growth, deal size and remaining land tenure are the key crucial factors for investors to determine their investment decisions, said Nguyen Thi Van Khanh, senior director, Capital Markets, JLL Vietnam.

“We expect foreign investors to continue showing keen interest and strong commitment in Vietnamese real estate market, and the market still has the potential for growth,” Khanh said.

Although the M&A activities might potentially occur at slower pace and lower frequencies in remaining two quarters due to lack of readily available projects to invest, the government’s existing policies will improve transparency in the market.

This would ensure Vietnam’s competitiveness and attract even more investors from the region, according to JLL Vietnam.

With readily available land areas to develop residential and commercial projects harder to find in the central business districts (CBD) or in well-known areas in the city, JLL said a number of investors and developers are looking to expand their footprint towards other neighbouring provinces.

Notable developers include Novaland with its Aqua City township project in Long Hung,Dong Nai Province, Nam Long with acquisition of Dong Nai Waterfront in the early of this year and its last year’s acquisition of Dai Phuoc Paragon, a 45ha township located in Nhon Trach, Dong Nai Province and Keppel Land’s acquisitions of three land parcels in Ho Chi Minh City recently.

Although there are a number of new developers and investors who are looking at these emerging areas, JLL said that the majority is still dominated by local or foreign groups who have been long-established in Vietnam. Vietnam news

MOST VIEWED

  • ‘Support of CNRP return online will lead to arrest’

    Anyone posting messages supporting the return of Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), on social media will be arrested, the Ministry of Interior announced on Tuesday. Ministry spokesman Khieu Sopheak told The Post on Monday that authorities

  • Police conduct raid on Orchid massage parlour

    Thirty-seven people, including three minors, were detained after Phnom Penh Municipal Police and the Department of Anti-Human Trafficking and Juvenile Protection raided the Orchid massage parlour in Sen Sok district’s Phnom Penh Thmey commune on Monday. The 27-room massage parlour is believed to have

  • Gov’t: US allows Rainsy terrorism

    The US is allowing Sam Rainsy to use its territory to carry out terrorist activities against Cambodia, government spokesman Phay Siphan charged on Thursday. Joining in the salvo, an academic said the US is also using Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia

  • Minimum wage set at $190 for 2020

    Next year’s basic minimum wage has been increased by 4.4 per cent to $190 a month from $170 per month last year after the final round of negotiations ended in a vote last week, the Ministry of Labour and Vocational Training announced. A ministry press release said