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|RoK splashes cash on Vietnamese realty market - Illustrative photo (Source: VNA)|
Hanoi – Vietnam’s realty market, in addition to the manufacturing sector, has been attracting significant FDI from the Republic of Korean (RoK) in recent years, according to a survey by real estate consultancy Savills Vietnam.
The proportion of the RoK’s investment in the market doubled in 2018 compared to the previous year. At the end of 2021, the figure grew 13 percent from 2020.
Andrew Lee, Korean Desk Manager at Savills Vietnam, said following Vietnam’s reopening of international flights in the first quarter of this year, RoK firms are seeking opportunities to enter and expand operations in the market.
He predicted the coming time will see more RoK-funded realty projects.
According to the expert, since the start of 2022, Vietnam has welcomed 900 million USD worth of investment from the RoK-based Lotte E&C in developing the smart urban area Lotte Eco Smart City Thu Thiem. YSL Group, another Korean investor, is also implementing an industrial land project spanning nearly 300 hectares in Nam Binh Xuyen, Vinh Phuc province.
Savills Vietnam said that logistics and warehouses are receiving the attention of many Korean businesses, with the prominent trend being the development of cold storage and smart warehouses.
Vietnamese localities near borders and seaports with good transport infrastructure are attractive to investments, Lee said.
In the first five months of this year, the RoK ranked second in investment in Vietnam with over 2.06 billion USD, up 12.6 percent year on year, according to the Ministry of Planning and Investment.