The Japanese Creed Group signed a deal last week to provide over 200 million USD to An Gia Investment, for a 20 per cent stake in the real estate company. Creed has also committed to investing directly in its Vietnamese partner projects at an ownership rate of 50/50, and providing loans to develop “housing projects of Japanese quality.”
Nguyen Ba Sang
Chairman, An Gia Investment JSC said: "Creed’s investment to An Gia is a win-win solution. We can make use of each other’s strengths and markets. This can help create the best products for our customers."
An Gia is just one of many companies in Ho Chi Minh that benefit from the growing inflow of FDI in the real estate market.
Le Hoang Chau, President, Real Estate Association said: "Changes happen when FDI in realty tops the city’s investment attraction list. This is a good sign, as it marks the recovery of the market, and a move toward more sustainability and transparency.
While businesses benefit from FDI, customers have more options for residences, at much more competitive prices.
"Homebuyers are the first to benefit from this trend. More competition is happening in the realty market with more and more projects. Buyers now have more options, from high to low end products. This is healthy competition between the sellers and, of course, the customers are the first and last to gain from this.", Nguyen Vinh Tran Managing Director, Jen Capital Fund said.
The FDI hike in the real estate sector signals positive growth in the market. However, to absorb foreign investment and make use of partners’ experiences, local enterprises are advised to improve management performance while maintaining a certain ownership ratio to avoid being acquired by larger firms.
