Foreign capital to thaw property freeze

Savills Vietnam and Savills Japan recently jointly held a workshop to introduce investment opportunities into Vietnamese properties in Tokyo, while Savills Vietnam will make a foray into some other Asian markets like South Korea, Hong Kong and Taiwan in the coming time.

According to Savills Vietnam investment director Su Ngoc Khuong, 20 projects were presented in Japan including residential block, office building and trade centre segments concentrated in Hanoi, Ho Chi Minh City, Nha Trang and Binh Duong.

“It is now a time a number of investment funds terminate operations and source extra capital sources to establish new ones, meanwhile scores of capital-strapped local property firms resort to distribution agents like Savills and CBRE to help them woo foreign capital,” said Khuong.

Unlike these firm, Phu Cuong Group Joint Stock Company, based in Mekong Delta Kien Giang province, acts on its own to lure foreign investment into its projects.

The group’s representative Nguyen Phi Son said the group focused on seeking investors for its Phu Cuong sea-encroached urban area over 168 hectares in Kien Giang province’s Rach Gia city.

“Looking for foreign capital emerges as a viable option to capital-thirsty local property firms because besides to strong finance, foreign investors have a wealth of experience in project development,” said Son.

Recently, CotecLand reportedly clinched a strategic cooperative contract with Japan’s leading property group TamaHome.

Ben Thanh Property director Hoang Cao Tri revealed his firm wanted to team up with healthy foreign financial partners for its rich portfolio of 10 property projects.

“The company does not limit investment cooperation models with potential foreign partners,” said Tri.

Local property firms stepped up efforts to lure foreign capital to settle their capital bottlenecks in the context the State Bank has recently partly loosened credit regulations towards property projects.