South Korean investment in Vietnamese real estate market increases
VIETNAM, June 21 –
Production in a company with South Korean capital in the province of Bà Rịa Vũng Tàu. South Korean investors are also interested in Vietnamese real estate. Photo VNA/VNS
HÀ NỘI — Real estate in Việt Nam is an increasingly attractive sector for South Korean investors, according to Savills Vietnam.
“The COVID-19 pandemic limited South Korean investors as they could not physically visit properties. However, international flights resumed in March, which means investors can now travel freely within Việt Nam and expand their business activities,” said Andrew Lee, Senior Director, Korean Desk Business Development, Savills Việt Nam.
“We expect an increase in 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 Thủ Thiêm, and YSL Group is implementing a 300-hectare industrial project in Nam Bình Xuyên, Vĩnh Phúc province.
With its focus on sustainability, Nam Bình Xuyên Green Park is set to become a top investment destination for domestic and foreign companies in Vĩnh Phúc, according to Savills Vietnam.
Logistics real estate is popular with South Korean investors, especially those looking to develop cold storage or smart warehouses.
Việt Nam real estate is increasingly popular with South Korean investors. The proportion of investments reached 13% at the end of November 2021.
“Việt Nam 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.”
“The improved investment environment in Việt Nam is also motivating South Korean investors to boost capital inflows into real estate.”
In May, many countries, including the United States, Japan, South Korea and Việt Nam, joined discussions on the creation of a new Asia-Pacific economic initiative. The discussions resulted in the creation of the Indo-Pacific Economic Framework (IPEF), which will create opportunities for Việt Nam in the region.
Trade between Việt Nam and South 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, South Korea is one of the main source countries of FDI. Investments in manufacturing and processing accounted for most South Korean transactions.
In the first five months of 2022, South Korea ranked second with investment capital of more than $2.06 billion, a year-on-year increase of 12.6 percent. ‘other.
With 112 new projects in 2022, South Korea held the largest share at 19.4%. She also brought in the most additional capital.
“Industry in Việt Nam is moving up the value chain, and high-value industries are becoming more evident,” Lee said.
“Many South 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 shrink. find in the key economic zone of the south”. —VNS