Many major real estate entrepreneurs from the US, the Republic of Korea, Australia, China and Singapore have come to Vietnam to explore its real estate market.

Atimol Group of Russia has officially announced a strategy for business operations in Vietnam after opening its office in Hanoi in November this year. Earlier, a host of the world’s largest companies such as France Telecom, Avaya, Comvik, Sun Microsystems and particularly the International Fund Vina Capital have also shown keen interest in the market.

A series of real estate business projects invested by the Republic of Korea (RoK), including Boo Young (US$170 million), Lee & Co ( US$70 million) and Posco-Vinaconex (US$2 billion) are being considered for licensing while other foreign investors such as Guoco Land and Capital Land are continuing to seek new investment projects in Vietnam. In addition,

Director of the International Investment and Urban Development Company ( IDJ) Tran Trong Hieu says after Vietnam’s successful organisation of the 14^th Economic Leaders’ Meeting and entry into the WTO, IDJ has received more than 15 entrepreneur delegations wanting to learn about the investment environment in the country. Some 70 percent of 69 projects in need of investment capital are involved in real estate business.

Director General of Real Estate Business Company CARE Marc Towsend says that the increasing inflow of foreign investment capital will rise with the increasing demands for offices, houses, hotels and other property in order to serve business and production activities.

However, the Vietnamese real estate market currently attracts most foreign investors involved in hotels and offices for lease such as Daewoo, Horizon, Melia, Sheraton and Hilton while some other foreign investors own as Vincom and the Manner channel their capital through Vietnamese partners. In fact, there are only few “genuine” housing foreign investors like Phu My Hung in HCM City or Ciputra in Hanoi as they are not financially and professionally strong enough in housing estate development.

The Vietnamese real estate market has become more attractive with a series of seminars introducing investment opportunities in Vietnam held by domestic and foreign consultancy companies and investment funds. Particularly, the Law on Real Estate Business to be effective as of January 1, 2007 will create more favorable conditions for investors.

According to Phan Huu Thang, Head of the Foreign Investment Department under the Ministry of Planning and Investment, this year’s total FDI capital to Vietnam is likely to hit US$8 billion with a focus on major projects. Real estate business is increasingly attracting  foreign investment capital as demand for houses, offices and upmarket  hotels is also on the rise.

Regarding  the real estate market in the future, many economic experts say that there will be a great need for office buildings and houses for foreigners and Vietnamese people in the coming period. Besides, many banks are preparing to launch long-term preferential loan programmes aimed at helping people access capital  for the real estate market which will see an increasing need for developing healthcare services, education, restaurants, hotels, recreational and shopping centres and luxurious cafés.

Deputy Prime Minister of Natural Resources and Environment Dang Hung Vo said, ”After Vietnam’s entry to the WTO, the finance and real estate markets will lure a large number of foreign investors who are financially strong and highly professional business operation.”