FI keeps flowing into Vietnam

Two more real estate and tourism projects by VinaCapital and the American KOR Group, with capital totalling US$525 million, will be launched in the central city of Da Nang.
The city authority on August 2 officially approved the VinaCapital Fund to invest in the construction of the VinaCapital Square Urban Area in An Bac Hai Precinct, Son Tra Peninsula, with $325 million in capital, according to the People´s Committee office in Da Nang.

Singapore tops list of ASEAN investors in Vietnam

The city state, according to the latest statistics from the Department of Foreign Investment, has over the first seven months of this year pumped over 1.3 billion USD into 44 projects in Vietnam, coming in at second among 39 countries and territories investing in Vietnam over the period.
An official from the Singaporean General Consulate in Ho Chi Minh City said that Singapore's experience in housing was due to his country's limited land acreage. According to the Department of Foreign Investment, the Vietnam-Singapore Industrial Zone Joint Venture and the Nasteelvina Company - a joint venture in steel production - are some of Singapore's bigger projects that are already reaping heavy benefits for the investor and the host country alike.

Domestic consortium forms real estate firm

A consortium of State-owned and private enterprises has launched a new real estate development company with a chartered capital of VND 1 trillion (US $62.5 million).

The Lilama Land Joint Stock Co was co-founded by the Vietnam Construction and Machinery Installation Corporation (Lilama), Vietnam National Tobacco Corporation (Vinataba), Hanoi Beer, Alcohol and Beverage Corporation (Habeco), Tan Long Ltd Co, the Vietnam National Construction Consultants Group, and the Hanoi Building Commercial Joint Stock Bank (Habubank).

The firm will focus on major real estate projects such as new urban areas, shopping centres, high-rise offices and apartments, and industrial and economic zones, as well as offering consulting services.

New real estate fever not likely

VietNamNet Bridge – Nguyen Manh Ha, Head of the House Management Department of the Ministry of Construction (MoC) brushed aside fears that real estate prices would skyrocket if a plan that permits foreigners to buy homes in the country by 2008 wins government approval. Under the plan foreign nationals will only be permitted to purchase one home that may be sold, gifted, mortgaged, or left in inheritance but will not be permitted to lease the property.

Billions coming in, but who knows for sure?

While the Ministry of Planning and Investment (MPI) joyfully announced the monthly inflow of foreign direct investment (FDI) into Vietnam, the State Bank of Vietnam (SBV) has nearly ‘blockaded’ all information about the Foreign Institutional Investment (FII) flow. According to statistics of the foreign bank which is managing the largest number of accounts for financial investment institutions, there are around 74 foreign investment funds pouring money into Vietnam, including 22 funds that have been established so far this year. Among new funds are Sumitomo Misui Vietnam, Fullerton Vietnam Fund, TongYang Vietnam, Maxford Growth Vietnam Focus, Vietnam Resource, Credit Agricole Fund.