Sign in Subscribe
Real estate industry

Vietnamese Businesses Shift Focus to Foreign Markets Amid Domestic Real Estate Uncertainty

Strategic Insights

— 2 min read

As the Vietnamese real estate market remains frozen and shows no signs of recovery, many businesses have turned to foreign markets for investment opportunities, marking a significant change in their development strategies. The Housing and Urban Development and Investment Corporation (HUD) has taken a pioneering approach by partnering with Cuba's Palmares Group to develop a golf course and tourism complex in Cuba. Similarly, other companies such as Hoang Anh Gia Lai Real Estate, Transport Engineering Construction & Investment Joint Stock Company, and Thu Duc Housing Development are also exploring opportunities in the US, Laos, and Cambodia.

Key Takeaways:

  • The Housing and Urban Development and Investment Corporation (HUD) has entered into a joint venture with Cuba's Palmares Group to develop a golf course and tourism complex in Cuba, covering 300-400 hectares of land.
  • HUD plans to cooperate with Cuba's leading tourism group, Cubanacan, to construct a five-star hotel in Santa Lucia (Camaguey) and with Gran Caribe to upgrade Capri Hotel in Havana.
  • The success of the office and house rental market in Cuba influenced HUD's decision to invest in Cuban projects instead of waiting for the recovery of the domestic real estate market.
  • Hoang Anh Gia Lai Real Estate Company is promoting the construction of a large-scale hotel in Vientiane, Laos.
  • The Transport Engineering Construction & Investment Joint Stock Company (TECBIS 584) has been granted a license to construct a trade and apartment centre in the US, targeting land owned by the Vietnamese community in California's Orange County.
  • TECBIS 584 has also established a branch in the US and aims to enter the US real estate market.
  • Thu Duc Housing Development (TDH) has studied the US market since 2007 and plans to enter into a joint venture to construct around 210,000 apartments for those affected by Hurricane Katrina.
  • Many international groups still believe in the long-term future of the Vietnamese real estate market, with registered foreign direct investment (FDI) reaching US$23.6 billion in 2008, tripling the previous year's figure.

Statistics:

  • The project in Cuba covers 300-400 hectares of land.
  • HUD plans to construct a five-star hotel in Santa Lucia (Camaguey) and upgrade Capri Hotel in Havana.
  • Hoang Anh Gia Lai Real Estate Company is planning a large-scale hotel in Vientiane, Laos.
  • TECBIS 584 aims to construct a trade and apartment centre in the US, targeting land in California's Orange County.
  • Thu Duc Housing Development plans to enter into a joint venture to construct around 210,000 apartments for those affected by Hurricane Katrina.
  • Registered foreign direct investment (FDI) in Vietnam reached US$23.6 billion in 2008.

Sources:

  • Asia Pulse, "Vietnamese Businesses Shift Focus to Foreign Markets Amid Domestic Real Estate Uncertainty," January 27, 2009.
  • VNA, "Vietnamese Businesses Shift Focus to Foreign Markets Amid Domestic Real Estate Uncertainty," January 27, 2009.

Read more