 |
| In the third quarter of 2023, the real estate market recorded a number of outstanding M&A transactions. (Source: Dan Tri) |
Many large M&A deals appear
Experts say that despite the global economic downturn, Vietnam's performance remains stable, creating great appeal to foreign manufacturing investors.
By the end of October 2023, the total newly registered, adjusted, and contributed capital to buy shares and purchase capital contributions by foreign investors in Vietnam reached more than 25.76 billion USD, up 14.7% over the same period. The real estate business sector remained in second place with a total investment capital of nearly 2.14 billion USD, accounting for more than 8.3% of the total registered investment capital.
Mr. Troy Griffiths - Deputy Managing Director of Savills Vietnam commented that the manufacturing, trade and service sectors will continue to be the driving force of Vietnam's economic growth while real estate mergers and acquisitions (M&A) activities are increasingly vibrant. The State Bank of Vietnam continues to pursue reducing interest rates to 2020 levels, which is also a good sign for residential real estate.
Many foreign investors have begun to transfer capital into real estate projects in Vietnam in the form of share acquisitions. A few Vietnamese enterprises with strong financial potential have also joined the game, but the scale of the deals is only small and medium.
In the third quarter of 2023, the real estate market recorded a number of outstanding M&A transactions. Notably, SkyWorld Development Berhad (Malaysia) purchased 2,060 m2 of land in District 8, Ho Chi Minh City from Thuan Thanh Joint Stock Company for 14.3 million USD to develop a residential real estate project.
Also in Ho Chi Minh City, another Malaysian company, Gamuda Berhad, purchased 3.68 hectares of land in Thu Duc City from Tam Luc Real Estate Joint Stock Company for approximately 315.8 million USD to develop a multi-purpose project.
Saigonres Group (Vietnam) has carried out M&A procedures to purchase 90% of shares of Duc Nhi Joint Stock Company and become the owner of a 7,700 m2 land plot in Tan Phu District, Ho Chi Minh City.
In the Hanoi market, there was a deal in which Keppel Group (Singapore) bought 65% of shares in a company holding commercial real estate assets with a total value of 50.4 million USD.
The Central market recorded the transaction in which First Real Land Joint Stock Company (Vietnam) bought 22% of the charter capital of Bach Dang Trading - Service Joint Stock Company, the owner of a 6,879 m2 land plot in Da Nang for 8.2 million USD.
Meanwhile, FIT Group (Vietnam) also officially withdrew capital from the Cap Padaran Mui Dinh beach resort project with an area of 800 hectares in Ninh Thuan province.
M&A activities in the third quarter of 2023 are assessed by experts to be quite vibrant with the participation of both foreign and domestic investors. Regarding the prospects of the housing segment, Mr. Neil MacGregor - Managing Director of Savills Vietnam said that with the shortage of apartment supply, investors who are able to successfully develop new projects for the market will take advantage of the strong demand at this time, especially if they target the growing middle-class homebuyers.
Savills experts in Vietnam commented that currently, prominent residential real estate investors such as Vingroup, Masterise Homes and Ecopark have launched many new products at the end of the year. At the same time, the revised Housing Law, expected to be passed in the 6th Session of the 15th National Assembly, also removed the regulation requiring commercial housing projects to reserve 20% of land area for social housing. This change is flexible and suitable for market practices and local needs; at the same time, it will help speed up the progress of commercial housing project developers.
Similarly, in the office segment, experts cited that in Ho Chi Minh City, the performance of the office segment remains strong. Although the supply of new Grade A is quite abundant, there are still opportunities for investors and developers in this field. Investors who can develop or upgrade office buildings with green standards can attract higher rents - Mr. Neil MacGregor analyzed.
Industrial real estate continues to be an attractive and promoting sector in real estate investment activities. Since July, Sumitomo Corporation (Japan) has signed a Memorandum of Understanding with Thanh Hoa province to develop an industrial park with an area of 650 hectares and an investment capital of 400 million USD; at the same time, considering the development of an industrial park with an area of 300 hectares in Nam Dinh.
At the end of August, three new projects of the Vietnam-Singapore Industrial Park (VSIP) began implementation; two projects received investment approval and 12 development cooperation agreements were signed.
Notably, a joint venture between Lineage Logistics and SK Logistics was announced to improve and expand Vietnam’s cold storage system. Meanwhile, Suntory Pepsico has received approval to build a new factory in Long An with a total investment of 185 million USD, while Hyosung Group plans to invest nearly 1 billion USD in a carbon fiber factory in Vung Tau…
Positive signs of FDI attraction and M&A show that investors are restoring confidence in the regional real estate market in general and Vietnam in particular, supported by the prospect of interest rates and a number of large transactions that are under thorough audit.
Land auction in Hanoi
Cau Giay Land Fund Development Center (Cau Giay District, Hanoi) has just announced the selection of an organization to auction assets including land use rights for 16 land plots in block D18 of Cau Giay New Urban Area, Dich Vong Ward and 2 land plots in lane 39, Tu Mo Street and lane 87, Nguyen Thi Dinh Street, Trung Hoa Ward.
In which, land plot D18 of Cau Giay New Urban Area includes 2 plots B10 and B19. Specifically, plot B10 has an area of 153m2, starting price of 248.2 million VND/m2; plot B19 has an area of 159m2, starting price of 186 million VND/m2.
The land in lane 39 Tu Mo street has 6 plots of land numbered from 1 to 6 with an area of 44.3-64.4m2. The starting price of the above plots of land ranges from 160.8-187.1 million VND/m2.
For the land in lane 87, Nguyen Thi Dinh street, there are 6 plots of land numbered from 1 to 6. Of which, plots 1, 2, 3, and 4 all have an area of 58.7 square meters and a starting price of 181.3 million VND/square meter. Plot 5 has an area of 84.2 square meters, a starting price of 173.5 million VND/square meter. Plot 6 has an area of 117.7 square meters, a starting price of 159.1 million VND/square meter.
It is expected that if the auction of the above 16 plots of land is successful, the total amount collected at the starting price will be more than 218.7 billion VND.
Hai Duong attracts investment in 9 social housing projects
According to the report of the Department of Planning and Investment of Hai Duong at the regular meeting in November 2023 (first meeting), the province has 9 lists of social housing projects attracting investment in the area, including 8 projects in Hai Duong city and 1 project in Chi Linh city.
 |
| A social housing project in Hai Duong city. (Source: BXD) |
During the meeting, Mr. Luu Van Ban - Permanent Vice Chairman of Hai Duong Provincial People's Committee assigned the Department of Planning and Investment to review and complete the list of social housing projects attracting investment to report and advise the Provincial People's Committee to decide to approve and announce the list of projects.
The Department of Construction shall preside over and coordinate with localities to receive social housing projects, develop project implementation procedures, guide localities, urge, supervise, inspect, and monitor implementation. In particular, perform tasks related to planning, organize site design, calculate project functions, scale, and total investment capital to have a basis for organizing investor selection. Request localities with social housing projects to base on the list, develop project implementation plans according to the progress reported to the Provincial People's Committee.
According to the report of the Department of Planning and Investment of Hai Duong on approving the list of social housing projects attracting investment in Hai Duong province in the period of 2023-2030, there are 9 lists of social housing projects attracting investment in the province, including 8 projects in Hai Duong city and 1 project in Chi Linh city with a total area of 6.25 hectares.
The proposed projects to attract investment in the 2023-2030 period include the Thai Binh River Ecological Urban Area Construction Investment Project (EcoRivers); Phu Quy Urban Area Construction Investment Project (Golden Land) - Phase I; Ngoc Chau Residential Area Project; Trai Bau Residential Area Project; Pham Ngu Lao Ward Central Area Project; Hai Duong City Central Urban Area Construction Project; Residential Area Project East of Tan Dan Street; New Residential Area Project West of Tu Minh Ward (all in Hai Duong City) and the social housing area of the new urban area project East in Cong Hoa Ward, Chi Linh City.
Principles of leasing and buying and selling social housing
Article 62 of the 2014 Housing Law clearly stipulates the principles of renting, hire-purchasing, and selling social housing. Accordingly, within the same period of time, each subject specified in Clause 1, Article 50 of the 2014 Housing Law is only allowed to rent, hire-purchase, or buy one social housing; students at public boarding schools for ethnic minorities do not have to pay for housing rent and services during use.
The term of a social housing lease contract is at least 5 years; the term of payment for the purchase of social housing is at least 5 years from the date of signing the housing lease contract.
The lessee or hire-purchaser of social housing is not allowed to sell, sub-lease, or lend the housing during the rental or hire-purchase period; if the lessee or hire-purchaser no longer has a need to rent or hire-purchase the housing, the contract shall be terminated and the housing must be returned.
The lessee or buyer of social housing may not resell the house within a minimum period of 5 years from the date of full payment of the lease purchase or purchase price; in case within 5 years from the date the lessee or buyer has fully paid the purchase or lease purchase price of the house and has a need to sell the house, it may only be resold to the social housing management unit or to a subject eligible to buy social housing if this unit does not purchase at a maximum selling price equal to the selling price of the same type of social housing at the same location and time of sale and is not required to pay personal income tax.
The buyer or lessee of a social housing unit may resell the housing unit under the market mechanism to those in need after a period of 5 years from the date of full payment of the purchase or lease purchase price of the housing unit and the date of issuance of the Certificate, but must pay land use fees according to Government regulations and pay income tax according to tax laws; in the case of selling to those eligible to purchase social housing as prescribed in this Law, the unit may only sell at a maximum price equal to the selling price of the same type of social housing at the same location and time of sale and shall not have to pay personal income tax.
For households and individuals who are eligible for resettlement and rent-purchase or purchase social housing, they can resell this housing according to the market mechanism to those in need after having paid in full the purchase or rent-purchase price of the housing and being granted a Certificate, but must pay land use fees to the State according to Government regulations and must pay income tax according to tax laws.
In all cases of leasing, hire-purchase, or selling social housing that is not in accordance with the provisions of this Law, the lease, hire-purchase, or sale contract of the housing is invalid and the lessee, hire-purchaser, or purchaser must hand over the housing to the social housing management unit; in case the housing is not handed over, the People's Committee of the province where the housing is located shall organize enforcement to reclaim that housing.
The handling of rent and house purchase fees is carried out in accordance with the provisions of civil law; the handling of rent and purchase fees for social housing is carried out in accordance with the provisions of Article 135 of the 2014 Housing Law.
Source
![[Photo] Magical moment of double five-colored clouds on Ba Den mountain on the day of the Buddha's relic procession](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/9/7a710556965c413397f9e38ac9708d2f)
![[Photo] General Secretary To Lam and international leaders attend the parade celebrating the 80th anniversary of the victory over fascism in Russia](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/9/4ec77ed7629a45c79d6e8aa952f20dd3)
![[Photo] Prime Minister Pham Minh Chinh chairs a special Government meeting on the arrangement of administrative units at all levels.](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/9/6a22e6a997424870abfb39817bb9bb6c)
![[Photo] Russian military power on display at parade celebrating 80 years of victory over fascism](https://vphoto.vietnam.vn/thumb/1200x675/vietnam/resource/IMAGE/2025/5/9/ce054c3a71b74b1da3be310973aebcfd)
Comment (0)