Thai businesses eye up the potential of Vietnam’s real estate sector.
When Thai company Central Group bought the supermarket chain Big C from French firm Casino a year ago, this was just one of many Thai businesses making their mark in Vietnam. The deal was for USD 1.05 billion. Other big deals in Vietnam involving Thai investors include Berli Jucker acquiring Metro Cash & Carry for USD 879 million and Singha Group spending USD 1.1 on Masan Group. Subsidiaries of the Masan Group include mining, financial services and food.
These are just a handful of the Thai large volume transactions in Vietnam. Interestingly Thai businesses have been looking to the construction industry for their next investments. Not only seeing this as an astute business venture, Thai businesses recognise the importance of playing a role in Vietnam’s growing real estate industry. It is not surprising considering Vietnam is making the headlines in property for a variety of reasons. This includes Hanoi and Ho Chi Minh City yielding some of the best office yields across the globe.
Thai based firm AMATA Group is known for their string of successful industrial developments that are executed on a large scale. AMATA have taken their expertise across to Vietnam investing in industrial parks right across the country. The arrival of these parks brings with it new businesses and thus tens of thousands of employees.
CP Group is another big Thai player in Vietnam. A conglomerate operating in a diverse range of industries including food, retail, distribution and telecommunications. It is actually one of the largest of its kind globally. The company plan to inject a further USD 3.6 billion into their existing investments in Vietnam. Fifty percent of which shall be directly to real estate and retail.
Vietnam is dominated by foreign direct investment. The real estate sector is been fiercely targetted by Vietnam’s neighbour as the retail industry is not providing enough opportunities for Thai businesses. With many companies already having a foothold in the country, this makes it even easier for them to have an impact as they play a vital role in the changing of the country’s skyline.
