RoK Investment in Vietnamese Real Estate Market Grows | Company

Illustrative photo (Source: VNA)

Hanoi (VNS/VNA) – Vietnamese real estate is an increasingly attractive sector for investors from the Republic of Korea (RoK), according to Savills Vietnam.

“The COVID-19 pandemic limited Korean investors as they could not physically visit properties. However, international flights resumed in March, which means investors can now travel freely in Vietnam and expand their business activities,” said Andrew Lee, Senior Manager, Korean Desk Business Development, Savills Vietnam.

“We expect an increase Korean real estate projects This year.”

There have been several notable investments this year. Lotte E&C has invested $900 million in Lotte Eco Smart City Thu Thiem, and YSL Group is implementing a 300-hectare industrial project in Nam Binh Xuyen, Vinh Phuc province.

With its focus on sustainability, Nam Binh Xuyen Green Park is set to become a top investment destination for domestic and foreign companies in Vinh Phuc, according to Savills Vietnam.

Logistics real estate is popular with Korean investors, especially those looking to develop cold storage or smart warehouses.

Vietnamese real estate is increasingly popular with Korean investors. The proportion of investments reached 13% at the end of November 2021.

“Vietnam is an ideal destination for companies that want to diversify their profile and avoid being dependent on a single country in the supply chain,” Lee said. “Localities close to international borders and transport links like ports are attractive investment destinations.”

“Vietnam’s improving investment environment is also motivating Korean investors to boost capital inflows into real estate.”

In May, many countries, including the United States, Japan, the Republic of Korea and Vietnam, joined discussions on the creation of a new Asia-Pacific economic initiative. The talks culminated in the creation of the Indo-Pacific Economic Framework (IPEF), which will create opportunities for Vietnam in the region.

Trade between Vietnam and the Republic of Korea continues to flourish. In early 2022, the Ministry of Finance held a conference with the Korean Embassy and the Korea Chamber of Commerce to discuss tax and customs policies and administrative procedures. The two countries have decided to modify the double taxation agreement to improve trade flows.

According to the Ministry of Planning and Investment, as of 2020, the Republic of Korea is one of the top source countries for FDI. Investments in manufacturing and processing accounted for most Korean transactions.

In the first five months of 2022, the Republic of Korea ranked second with investment capital of over $2.06 billion, a 12.6% year-on-year increase .

With 112 new projects in 2022, the Republic of Korea held the largest share at 19.4%. She also brought in the most additional capital.

“Industry in Vietnam is moving up the value chain, and high-value industries are becoming more evident,” Lee said.

“Many Korean companies working with high value-added goods like electronics and high-tech equipment have invested in the northern key economic zone. However, more traditional industries like textile manufacturing tend to be in the key economic zone of the south.”/.

Penny D. Jackson