Vietnam welcomes considerable foreign direct investment, but who are these big investors?
Vietnam is experiencing a lot of global interest. Investors are keen to dip their toes in to make the most of this emerging market. The tourism sector is growing. The property market is coming on leaps and bounds and developers are reporting record profits.
But which countries are Vietnam’s big players? Well Japan is seriously making a mark. Getting involved in a broad range of properties from residential, commercial and also developments across infrastructure sectors. The Japanese are also a part of some of the larger real estate projects such as Aeon Mall’s opening of a new mall in Ho Chi Minh City.
Well known company Mitsubishi are collaborating with local firm Bitexco to develop residential scheme in Hanoi. Plus Kajima are working alongside Indochina Capital to invest up to USD 1 billion over the next 10 years in the property sector. These are big numbers not to be sniffed at.
This makes Japan the second largest foreign direct investor in Vietnam. South Korea is leading the pack accounting for 16.1 percent of all investment. It has been reported that Japan have invested USD 1.91 billion across 53 different projects, which is 4.5 percent of all foreign direct investment.
The Japanese have been enticed by Vietnam due to the investment environment it offers. Having improved overtime, Japan now is a big creditor to the country which investors have jumped on to enjoy the low borrowing costs whilst reaping the profits that Vietnam has the potential to generate. This investment isn’t expected to slowdown anytime soon as the development in Vietnam propels ahead.
