Thai businesses are making a beeline for Vietnam’s real estate.
When Thai company Central Group bought the supermarket chain Big C from French firm Casino a year ago, this was just one of many Thai businesses moving in on Vietnam. This particular deal was for a staggering USD 1.05 billion. Similar big deals transacted by Thai based businesses in Vietnam include Berli Jucker acquiring Metro Cash & Carry for USD 879 million and Singha Group spending USD 1.1 on Masan Group. Subsidiaries of the Masan Group include mining, financial services and food.
As Vietnam’s economy is propelling forward it is receiving a lot of attention on a global span. Thai companies have been keen to be involved in these opportunities and are now focusing on investments within the construction industry. They see this as a chance to profit from Vietnam’s growing real industry. Examples include two of its biggest cities, Hanoi and Ho Chi Minh City, yielding some of the best office yields across the world.
One Thai business expansion into Vietnam is that of AMATA Group. Known for their string of successful large industrial developments. AMATA have taken their expertise across to Vietnam investing in industrial parks throughout the country. The arrival of these parks brings with it new businesses and thus tens of thousands of employees that need to be housed.
CP Group is another big Thai player in Vietnam. A conglomerate operating in a diverse range of industries including food, retail, distribution and telecommunications. It is actually one of the largest of its kind globally. The company plan to inject a further USD 3.6 billion into their existing investments in Vietnam. Fifty percent of which shall be directly to real estate and retail.
Vietnam is dominated by foreign direct investment so Thai business focus comes as no surprise. A record amount of foreign direct investment has been injected into Vietnamese real estate in 2017 alone. In fact there has been a twelvefold increase if compared to the same period the year before. More big deals are expected in the future that will continue to shape Vietnam’s property world.