Trung Hoa Nhan Chinh Residential Towers in Ho Chi Minh City
Vietnam is facing yet another invasion, this time from foreigners armed with capital.
Local Vietnamese investors are currently experiencing difficulties obtaining finance from Vietnam based banks tightening their lending criteria. This has created “Golden opportunities” for foreign investors according Vietnam based news website VietNamNet Bridge.
Whilst activity in Vietnam’s indigenous real estate and construction sector seems to slowing due to the lack of credit, an influx of foreign investors from the US, South Korea and China are bringing in a stream of foreign direct investment (FDI) that is reviving Vietnam’s real estate market. This has led to a trend of foreign construction firms developing the most exclusive high-end projects which are typically high-rise buildings in the city centres’ of Hanio and Ho Chi Minh City. Foreign companies operating in Vietnam typically have the leverage of the abundance of capital to access even more capital with preferential conditions & longer terms of lending that local companies lack.
Ho Chi Minh City, Vietnam’s largest city is at the top of the list of investors. Its real estate association, HCM City Real Estate Association (HOREA) (HOREA) is now receiving record number of joint venture enquires from global investors.
There is a lot of talk about consolidation within Vietnam’s local construction industry in order to obtain credit to participate in its booming real estate sector.