Instead of "single-handed" in a potential real estate market, many Vietnamese real estate businesses have actively sought cooperation with foreign investors, especially Japan.
Sharing in the program Multidimensional view this week, from the perspective of insiders, Ms. Nguyen Xuan Huong, CEO of TMS Homes, a member company of TMS Group, said to start working with Foreign businesses is an inevitable trend, contributing to improving the position of Vietnamese real estate enterprises and effectively exploiting the potential of Vietnam's real estate market in the future.
INEVITABLE TREND
The number of Vietnamese enterprises shaking hands with foreign investors is increasing strongly in Vietnam. According to the Foreign Investment Agency (Ministry of Planning and Investment), in 2018, registered capital for real estate reached over USD 6.6 billion, ranking second in the fields attracting the most FDI. Generally, in January 2019, the total registered investment capital in real estate business reached 179.1 million USD, accounting for 9.3% of the total registered investment capital.
No longer waiting for foreign businesses to approach the handshake proposal like 2017, 2018, now, there are some businesses actively introducing projects, promoting investment. Typically, the Investment Promotion Conference will be held in 3 major cities Tokyo - Osaka - Fukuoka (Japan) in April 2019 of TMS Group to open opportunities for Japanese investors to seize Latest investment trends in Vietnam market. The initiative of enterprises such as TMS Group is expected to open a new trend in cooperation with foreign investors.
According to Ms. Nguyen Xuan Huong, CEO of TMS Homes, a member company of TMS Group, actively seeking investment cooperation in real estate with foreign partners is an inevitable trend of businesses in real estate industry in the future. First of all, the Vietnamese real estate market is very attractive to foreign investors, with a long and beautiful coastline, and many suitable locations to develop resort real estate. Provinces in the suburbs of Hanoi and Ho Chi Minh City are also localities with great potential to attract investment. Besides, the Government of Vietnam has also had many preferential policies to attract foreign capital inflows. Along with that is an abundant labor force with cheap labor costs. All of these factors have been stimulating foreign investors, when they see the profit will be better than other markets or their own markets.
In addition, Ms. Nguyen Xuan Huong said that shaking hands with foreign investors will attract capital, learn technology, how to implement and complete a best quality real estate product. overcome the weaknesses of the enterprises themselves.
“Now we have to be proactive, because competition in the real estate market is fierce. An existing business must be an enterprise with real capability of its own internal strength, its ability to attract foreign investment. Not every beautiful project fund is able to call upon partners or buyers to find themselves because I have other people also. Nor does any real estate business have confidence to have enough capital to carry out all projects while there is a lot of room for development in the Vietnamese market. Therefore, proactive promotion to call for cooperation is the right thing to do and must be boldly implemented”, Huong said.
MANY OPPORTUNITIES WHEN ACTIVITY HANDSED WITH JAPANESE INVESTORS
According to Ms. Nguyen Xuan Huong, the proactive investment promotion to introduce the project and introduce investment trends in Vietnam for Japanese investors will open great opportunities for Vietnamese businesses.
“Japanese investors have very good economic potential, can learn the technology, processes and ways to implement the project. Cooperating with Japanese enterprises to help Vietnamese people enjoy high quality facilities and high quality real estate products and increase long-term value”.
In addition, according to Ms. Huong, "Japanese investors are interested in two product lines: resort real estate with projects with prime locations in the beautiful beach of Vietnam and home real estate staying with projects in busy provinces and cities, developing industries”. These are all segments where the Vietnamese market has many potentials and potentials.
However, Ms. Nguyen Xuan Huong said that Japanese investors set up a stringent value chain on the legal transparency of the project, quality standards, progress and operation, ensuring benefits investment returns according to commitments. Therefore, Vietnamese enterprises in general and TMS Group in particular when looking for opportunities to cooperate with Japanese partners must also approach the values set by the partners, meeting the requirements of partner.
In addition, the preparation of the project fund must be in line with the investment criteria of Japanese businesses. At the same time, completing the legal infrastructure and infrastructure in the project is also a condition that Japanese partners set out from the beginning. In addition, during the implementation process, the projects must always ensure progress, at the same time quality and profitability in the long run and operation methods must be enhanced.
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“Vietnam real estate market is currently receiving a strong wave of investment from Japanese enterprises, so we do not want to miss this opportunity. TMS has been successful in the Japanese market for the past 15 years and we believe that with a deep understanding of Japanese partners, we will continue to cooperate with Japanese businesses in the future. in real estate.
These real estate projects introduced in Japan this time are projects with very good location and high profitability. We hope that we will find investors with potential and mind together with TMS Group, build projects worthy of high quality and real estate products.
All of our projects have also completed the legal procedures, physical infrastructure to be ready with Japanese partners to create high quality products that meet the maximum needs of customers and bring economic benefits to both parties” said Ms. Nguyen Xuan Huong.
(According to Reatimes.vn)
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