Foreign investors have returned to Vietnam ready to invest in cash-troubled Vietnamese property developers.
Foreigners armed with capital are demanding higher returns than previously and expect closer ties with management.
The Vietnamese government has restricted bank lending to local property developers, which is putting the developers under great stress and has allowed for “Golden opportunities” for cash rich foreign investors such as Morgan Stanley , Blackstone and JP Morgan who are looking to purchase attractive distressed assets.
Vietnam’s property development and construction industry has been slowing since to the lack of available credit, an stream of overseas foreign investors from the United States, South Korea and China have been delivering a stream of foreign direct investment (FDI) that is keeping Vietnam’s real estate market alive.
We are now seeing a number of foreign construction firms undertaking the development of Vietnams most exclusive high-end property developments which are usually high-rise buildings in the city centres’ of Hanio and Ho Chi Minh City.
Overseas Foreign companies in Vietnam usually have the advantage and leverage of the abundance of capital to access even more capital with preferential conditions, longer repayment terms of lending that local companies cannot obtain.