Chinese Investment in Vietnam

Real estate market in Vietnam is booming. Unfortunately, there was a largely inaccessible to foreign buyers on the basis of strict foreign Boom Property. This may, however, some changes are coming in the new year.

Chinese investors are looking at Vietnam, “said the founder of VinaCapital. could lead to open-end funds and higher limits on foreign ownership in the next in Vietnam since the Communist Party Congress in January that Office of Government and sets the direction for the next five years.

With the growth of the World Bank predicts that 6.5 to 7.5% of GDP in 2015, VinaCapital are optimistic about a deal with an earnings ratio of 9.5 times the price
and World Bank forecasts growth of 6.5 to 7.5% of GDP in 2015, said Market research, regardless of Economist Intelligence Unit, is one of Vietnam, the second in terms of investment Attraction – after China and ahead of countries like Brazil and India.

Vietnamese authorities have indicated their interest in marketing rules for a traditional investment funds and open-market Several companies eyeing the potential for some time. This would be a significant departure from the market eight years Trends in which they all closed-end products with government intend to restrict such investments and institutional wealthy investors.

The signs that regulators may feel the market mature enough to be open to investors or the mass market. The emphasis is on China. With a booming economy, most global Market, Chinese investors are looking at commercial banks and investment Opportunities in frontier markets like Vietnam.

Several companies in Greater China is trying to transfer some of their Operations in Vietnam, mainly due to rising costs in China and how Part of sector strategies “China plus one”. Two of the most important be called Taiwanese notebook manufacturer Compal, which has opened a new $ 500,000,000 plant in northern Vietnam, and Foxconn, which establish a central door next to Compal, the second VinaCapital entered into negotiations for possible joint ventures with mainland China Companies.

“We think it is realistic to think that we still have Chinese investors Over the next two years, trade in private-equity/FDI Vietnamese, “said VinaCapital co-founder Don Lam. USD15 to 20 million dollars is the kind of The level of Chinese investment is said to compare.

Accompanied by the Chinese who are not required to visit or work visa to Vietnam and who knows the economic and political Structure, the market for the promise of the country charm of China.

VinaCapital plans to launch two new closed-end funds, perhaps the next Years. One of these vehicles is a real estate focused on Residential and commercial real estate markets worth more than $ 250,000,000.

90% of those asked in the survey stated that they would like to purchase real estate near to their current residence and 70% showing great interest in expanding their property investments overseas or further away from home.

Shanghai, Hong Kong and Singapore have long been the most popular locations for investments of commercial properties. Many Chinese investors are also beginning to diversify investments towards second-tier cities such as Suzhou, Hangzhou, Nanjing and Shenzhen for residential and retail investments.

Mainland Chinese investors continue to be keen on investing in Hong Kong Real Estate, seeing various real estate developers, wealthy individuals and corporations investing in Hong Kong Property.

Real estate investors in asia have expressed some concerns towards overheated markets, liquidity, and interest rate increases, However many expect to benefit from the renminbi rise.

Asian’s and Mainland Chinese have also shown interest in real estate investments outside of their home countries, 60% strongly stated they wish to purchase overseas investment property.

Hotspots for Asian Chinese property investors included Sydney and Brisbane and New York.

We are also seeing wealthy newly rich individuals purchasing vacation properties across Asia in destinations such as Philippines, Thailand, Bali and Japan.

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