There has been a surge in real estate dealmaking and kickstarting of major ventures in recent months, Photo: Le Toan

On August 28, Remon Vos, CEO and founder of CTP Group from the Netherlands, met with the People’s Committee of Hung Yen province to express his intention to invest in an industrial real estate scheme worth around €1 billion ($1.16 billion), focusing on provinces and cities with strong potential for industrial and logistics growth.

CTP currently manages more than 11 million sq.m of factories and logistics facilities across 10 European countries.

Meanwhile, work began last week on North Hanoi Smart City, a $4.2 billion joint venture between BRG Group of Vietnam and Japan’s Sumitomo Corporation.

Located in the capital’s Vinh Thanh commune and covering over 270 hectares, North Hanoi Smart City is envisioned as Vietnam’s first carbon-neutral urban area, setting a benchmark for sustainable, green, and modern city development.

In commercial property, United Overseas Australia (UOA) Vietnam’s acquisition of VIAS Hong Ngoc Bao for $68 million in July has emerged as one of the most notable office lease transactions in the first seven months.

UOA Vietnam, a subsidiary of Malaysian property developer UOA Group, now has full control of the target company’s sole core asset: the right to develop a more than 2,000-square-metre land plot in Tan Dinh ward, one of the last prime sites in the heart of Ho Chi Minh City, with approved zoning for up to 22 floors.

As per the General Statistics Office under the Ministry of Finance, as of July 31, total registered foreign direct investment (FDI) in Vietnam reached $24.09 billion, up 27.3 per cent on-year.

The real estate sector came third in largest share of newly licensed FDI, accounting for 23.5 per cent. Updated figures for August were due to be published on September 6.

These movements show that the interest of overseas investors in the real estate market remains strong, according to Matthew Powell, director of Savills Hanoi.

“A series of administrative changes, including reducing the number of provinces and abolishing the district level, are expected to streamline the apparatus, enhance governance efficiency, and create more improvements for investment inflows,” Powell said a fortnight ago.

“In addition, Vietnam wants to develop the private sector, with a focus on legal reform, reducing business barriers, improving access to land and capital, protecting property rights, and fostering fair competition. This provides an important foundation for Vietnam to attract more high-quality capital, as global investors increasingly value a stable and transparent legal environment,” he added.

This year has also witnessed a surge in real estate dealmaking activity, with a series of deals led by overseas investors.

Notable transactions include Capitaland’s acquisition of a scheme in Binh Duong from Becamex IDC worth $553 million, and a joint venture between Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development, partnering with Kim Oanh Group, to develop The One World.

In addition, Nishi Nippon Railroad acquired a 25 per cent stake in the Paragon Dai Phuoc project from Nam Long Group.

Industrial real estate continues to be a magnet and a number of new schemes have recently broken ground, including two Becamex IDC industrial parks in Binh Duong and the VSIP Nam Dinh complex, which is scheduled to start construction in the current quarter.