Xin chao！I’m Momoko in charge of Vietnamese market.
Recently, there are a lot of construction sites at Ho chi minh in Vietnam. As you know, market in Vietnam is changing because of construction’s progressing inch by inch. As a result, land prices are soaring now!!
Then, I’d like to tell you how land prices are soaring and for what people increase investment in and introduce a new business focusing on these changing.
・Why are land prices soaring rapidly??
On August in 2015, land prices for dwelling house at district 9 at Ho chi minh rising steeply by 5-10%. The regular price was 12 million VND/1㎡ (about 578USD), but now 13.5 million VND/1㎡ (about 650USD). District 2 next to district 9 is popular as the area of villa, and its land price is rising.
Why are land prices rising? As I mentioned at the beginning, large-scale transportation infrastructure development is progressing!! For example, constructions of subway and the second ring road.
This factor doesn’t have only an effect on soaring land prices! There aren’t famous buildings at District Bin tan, but it is developing and expected to be a dormitory town. That’s why transportation infrastructure development affects developments of country towns, and many companies may make new businesses.
・What do Vietnamese invest in? What is a new business?
I mentioned that rising land prices makes investment increase. Then, what do people in Vietnam invest in? The answer is “condominium apartment”!
In these days, Vietnamese are apt to buy apartments for investment, not for living in. 1st popular area is district2 and 2nd is district9. When we buy apartments in Vietnam, we should pay 20% of land price. After that, we should pay money every time 10 floors are constructed. The average we can get is about 1.78 million USD. Of course, they cannot pay all of money at once, so most of them need to make loans.
The Japanese company focusing on this tendency is the “Shinsei Bank,” and it started entering Vietnam! Shinsei Bank invests 100% in the subsidiary companies of “Military Commercial Joint Stock Bank (MBB)” which is a major bank in Vietnam. Shinsei Bank handles projects. In addition, it is affiliated with “Viettel Corporation (Virttel)” which is the biggest mobile phone provider in Vietnam and MBB’s largest shareholder. They will provide a new service as new brand name, “m credit.” Individual customers in Vietnam will start with offering installment loans and certificate type loans when purchasing Viettel’s mobile.
It will make projects go well for a long time to consider business focusing on middle-income group in young generation and tendency of demand. We should get information of market trends.
Asiaclick has local correspondents in ASEAN, so we can get information like that always and lead you to succeed. If you have questions or want to consult with us, please contact us!!