FDI Capital Continuously Flows into Binh Duong Real Estate Market

Since the beginning of the year, numerous foreign-invested real estate projects in Binh Duong province have been announced. Notably, the products mainly target middle-income customers.

Foreign Enterprises Launch Real Estate Projects

Since the beginning of 2024, numerous large companies from various countries, such as Japan, Malaysia, and Singapore, have been aggressively investing in real estate projects, prominently featuring affordable housing projects in Binh Duong.

Recently, TT Capital Investment Joint Stock Company, along with two partners from Japan—Cosmos Initia (a member of Daiwa House Group) and Koterasu—has collaborated to develop a line of affordable housing products in Binh Duong and neighboring provinces.

This joint venture announced an investment of approximately $150 million over five years, aiming to deliver thousands of affordable apartments to the market each year. The venture has completed its capital contribution for a project near Vincom Di An (Di An City), which has a scale of nearly 2,000 apartments, priced under 2 billion VND per apartment, and is likely to launch in the third quarter of this year.

It is known that Bcons Group, a company with several social housing projects in Binh Duong, is also partnering with Asset Limited (Thailand) to continue developing 11 housing projects totaling nearly 9,000 affordable apartments in the area. Recently, this investor announced plans to implement more than 2,000 social housing units in the Thong Nhat area (Di An City) by 2025.

In April 2024, Kim Oanh Group also signed an investment cooperation agreement for the One World Urban Area real estate project with three Japanese partners, including Sumitomo Forestry Group, Kumagai Gumi Group, and NTT Urban Development Company. The project covers nearly 50 hectares, with total investment exceeding $1 billion. It is located at key road intersections such as Binh Duong Boulevard, Nguyen Thi Minh Khai, and Ring Road 3 – Ho Chi Minh City.

One of Asia’s leading real estate groups, CapitaLand (Singapore), has also broken ground on the Sycamore housing project, covering 19 hectares in Binh Duong. This project will build nearly 3,500 apartments, meeting the housing needs of about 13,000 residents. The total development value of the project is approximately 18 trillion VND. Notably, this is the largest and most affordable project among the products that this investor is implementing in Vietnam.

Numerous Advantages and Incentives Attracting Investment

As an enterprise that has invested in Binh Duong real estate, Mr. Ronald Tay, General Director of CapitaLand Vietnam, shared that the Sycamore project is a testament to this company’s confidence in the Binh Duong real estate market.

“Binh Duong is not only a locality with a strategic position and a favorable business environment, along with high-quality infrastructure, but it is also one of the dynamically developing localities, strongly attracting FDI capital,” said Mr. Ronald Tay.

In an interview with an Investment Newspaper reporter, Mr. Shin Ogawa, Head of Housing Operations at Cosmos Initia, also stated that his company and its joint venture partners highly value the housing market potential in Vietnam, especially the real housing demand of people in Ho Chi Minh City, Binh Duong, and surrounding areas, with the real housing demand increasing while supply is severely lacking.

For his part, Mr. Nguyen Dinh Truong, General Director of TT Capital Investment Joint Stock Company, noted that the investment implementation of the TT AVIO apartment project in Di An City is proceeding smoothly and on schedule, thanks to the support and favorable policies from local leaders. This will be a motivation for investors to continue pouring capital into projects in the area.

From the perspective of the Binh Duong Real Estate Association, Mr. Giang Quoc Dung, Chairman of the Association, stated that investors from Japan, Singapore, Thailand, and China are the most interested in the segment serving real housing needs. Therefore, they are always flexible in investing in Binh Duong.

Moreover, according to Mr. Dung, Binh Duong has a favorable position next to strongly developed localities such as Ho Chi Minh City and Dong Nai, and it also has a large land fund that allows for the construction of high-rise buildings without being limited by population density. Additionally, the province has a transparent investment environment and quick legal procedures.

Notably, the cooperation between Binh Duong and large, globally recognized groups, such as Warburg Pincus, Sembcorp, Tokyu, CapitaLand Development, and Aeon, has recently achieved significant success and will continue to contribute to the transformation of Binh Duong’s urban landscape. This is also one of the reasons why foreign investors in real estate have a realistic view of the investment advantages in this locality.

With its potentials and advantages, recently, not only foreign enterprises but also many domestic investors have continuously poured capital into the real estate market in Binh Duong, focusing on the most potential and practical segment: affordable social housing.

For example, Phat Dat Real Estate Development Joint Stock Company plans to introduce the Thuận An 1 and Thuận An 2 high-rise mixed-use residential area projects in Thuận Giao Ward (Thuận An City) in October 2024.

Source: Báo Đầu Tư.