Vietnam’s real estate market is experiencing a significant influx of investment from Thailand, with major players making strategic moves to establish a foothold in the region. This surge in Thai investment is set to reshape the landscape of Vietnam’s property sector, particularly in industrial and residential developments.
Key Takeaways
- WHA Group proposes a 1,200-hectare industrial and residential complex in Ba Ria-Vung Tau.
- Central Pattana aims to invest nearly $1.5 billion in the Vietnamese retail market by 2027.
- Charoen Pokphand Group targets high-end real estate through a new investment fund.
- Thailand ranks ninth among foreign investors in Vietnam, with nearly $14 billion invested in 2023.
WHA Group’s Ambitious Plans
This month, WHA Group, Thailand’s largest industrial estate developer, announced plans to develop a vast industrial and residential complex in Ba Ria-Vung Tau province. During a meeting with the provincial People’s Committee, chairwoman Jareeporn Jarukornsakul revealed that the company intends to invest in 1,200 hectares in Chau Duc district for industrial development.
WHA has been active in Vietnam since 2017, having established its first 1,900-hectare industrial park in Nghe An province. The company is now expanding its presence to other localities, including Thanh Hoa and Quang Ninh. Jarukornsakul stated, "We plan to invest at least $1 billion in the next five years in Vietnam, which will in turn entice projects worth over $5 billion."
Central Pattana’s Expansion Strategy
In February, Central Pattana, a member of the Central Group, launched CPN Global Vietnam Co., Ltd., focusing on consulting and real estate management. With a charter capital of $833,000, this new entity marks a significant step in the group’s strategy to invest nearly $1.5 billion in the Vietnamese retail market by 2027. Central Pattana, established in 1980, manages nearly 40 high-end shopping centres, 10 office buildings, five hotels, and around 30 residential projects, boasting total assets exceeding $7.8 billion as of September 2023.
Charoen Pokphand Group’s Investment Fund
At the end of 2023, Charoen Pokphand Group announced its investment in CMAG Funds, a new fund managed by Wonder Capital Group, aimed at high-end real estate in Southeast Asia. The fund plans to mobilise up to $100 million, reflecting the growing interest of Thai investors in Vietnam’s property market.
Vietnam’s Growing Appeal to Foreign Investors
According to Tran Van Binh, vice chairman of the Vietnam Real Estate Realtors Association, Vietnam is emerging as a prime destination for foreign investors. He noted, "Vietnam has recorded a strong wave of funding from Singapore, South Korea, Japan, and especially Thailand. Among them, residential, commercial, resort, and industrial real estate attract numerous developers."
Despite the global economic fluctuations, Binh acknowledged the challenges facing Vietnam’s real estate market. To stimulate growth, the Vietnamese government is increasing the supply of real estate and making regulations more favourable for foreign property ownership.
Conclusion
The influx of Thai investment into Vietnam’s real estate sector signifies a robust confidence in the market’s potential. With major players like WHA Group and Central Pattana making substantial commitments, the landscape of Vietnam’s property market is poised for transformation, attracting further interest from international investors.
Sources
- Tycoons from Thailand enter real estate fray, Vietnam Investment Review – VIR.
