Golden Time for Real Estate Investment

Concerning the trend of Vietnam real estate market in coming time, we VIB Forum had an interview with Mr Duong Nguyen Hung, General Director of Vietnam Investment Promoting Technics & Construction Joint Stock Company (TECHCONVINA), a leading company providing with civil and industrial construction services, realty and global investment consulting service to global FDI multinational enterprises.

 

Vietnam realty market has been over the “bubble” and mass investment period. The market has fallen into frozen state, few transactions happened due to government’s credit tightening and investors’ lack of capital, causing many projects to be temporarily stopped. This strongly affects investors and supplies to market.

I think, only by mid-2009 will the market be exciting and attract foreign investors because it is still a potential market and foreign investors highly appreciate its development speed.

 

there are now 2 directions for domestic investors. Firstly, they sell projects to foreign investors. Secondly, local investors must cooperate to maintain investment rate and patiently wait for the market can return to stable level, when banks disburse capital businesses will have more investment sources for projects and investors can expand investment items.

Once there has have been signals of stable macro-economy then real estate market will get warmer and investors may sell products, take back capital and don’t have to sell futures lower than real value.

 

Several projects which have found capital sources from businesses are still being implemented. It is forecasted that scarceness will not happen when market gets warmer because supplies remain plentiful such as projects finished before and after market frozen. Therefore, foreign investors have invested much in Vietnam realty market and they find it full of potential.

 

The market develops in accordance to supply-demand law, where there are profits there will be investors regardless of local or foreign ones, and it depends much on investors’ financial ability. If investors exactly evaluate market’s trend they will get profits. However, in order to get profits and maintain marketshare, domestic investors need to have long-term investment strategy, build marketing plan, enhance management capacity and cooperate with each others.

 

TECHCONVINA is not out of the common development trend of the market. We will make full use of our own capital sources, profits in other fields of the group to invest. In addition, we will set up different channels for mobilising capital like direct, indirect capital, overseas Vietnamese, local investors,… to implement on-going projects such as 2 high-buildings in Ha Noi and HCM City; and keep investing in other investors’ feasible projects which are in lack of capital because they are also in need of the so-call cooperation. We don’t want to miss the train because in the current context early starters will win when the market takes off.