Savills recently published a report on investment activities in the Asia-Pacific region in the second quarter. The report records a number of large investment deals in the industrial and housing real estate sectors in Vietnam.
In the second quarter of 2024, M&A activities recorded 3 investment deals in the industrial and housing real estate sectors. Some major M&A transactions include: Kim Oanh Group cooperated with NTT Urban Development, Sumitomo Forestry, Kumagai Gumi Co Ltd (Japan) to develop The One World - a 50ha residential area in Binh Duong.
Nishi Nippon Railroad (Japan) has acquired a 25% stake in the 45.5-hectare Paragon Dai Phuoc Project from Nam Long Group (Vietnam) for about 26 million USD. Tripod Technology Corporation has acquired an 18-hectare industrial land plot in Ba Ria - Vung Tau from Sonadezi Chau Duc. Or CapitaLand Investment plans to invest an additional 73-110 million USD in Vietnam in the next 2 years to build or acquire industrial parks.
The current highlight is the trend of domestic real estate businesses with strong financial potential starting to enter the M&A market, with the "race" to plan clean legal land funds; Offering for sale and calling for investment cooperation in commercial housing and social housing projects in the context that many businesses have land funds but are having difficulty with cash flow to implement the project .
Investors with "suspended" projects will have to quickly find a way to build or transfer to a capable unit for implementation if they do not want to be left empty-handed when the new laws take effect from August 1, 2024.
Recently, the situation of many "frozen" projects has been a problem that has caused frustration for many years. Many projects have not been allowed to be implemented, are not eligible to mobilize capital, and there are even many cases where investors deliberately appropriate capital from customers to invest in many projects at the same time, or use capital for personal purposes... causing no project to be completed on schedule.
However, the Land Law 2024 stipulates that an investment project cannot be used for 12 consecutive months from the date of handover on the ground, or the land use progress is 24 months behind the progress recorded in the project. The sentence will be revoked. In case the land is not put into use or is behind schedule, the investor is allowed to extend the use period for no more than 24 months and must additionally pay the State a corresponding amount. At the end of the extension period, if the investor has not yet put the land into use, the State will reclaim it without compensation.
According to the assessment of Dr. Nguyen Duy Phuong, DG Investment Director, currently, project buyers are very careful in choosing projects and they are afraid of buying projects that are not legal enough, as well as projects that have not yet completed compensation. site clearance, because it takes a long time to do this and costs a lot of time and money. The fundamental purpose of amending the Land Law is to correct inadequacies and unreasonableness as well as supplement urgent regulations from practice to solve problems for investors, businesses as well as the market. real estate. That will help purify and orient the market to develop more healthily, thereby making M&A activities more vibrant.
