At the same time, CapitaLand announced the acquisition of a 90% stake in a 0.8 hectare project in Thao Dien, one of the most sought-after property in Ho Chi Minh City, to develop over 300 residential units. This movement was in line with CapitaLand’s strategy to expand its residential development portfolio in Vietnam.
Another Singaporean developer, Keppel Land, has paid VND846 billion (approximately US$37 million) to increase its stake by 16% in its mixed-use project Saigon Centre located in the heart of Ho Chi Minh City.
In March 2017, Hongkong Land became a strategic partner of the HCMC Infrastructure Investment JSC (CII) to develop residential projects in the locally listed firm’s land portfolio, including several hectares in the Thu Thiem New Urban Area. In another popular residential area of the city, An Gia Investment and Creed Group of Japan continued to acquire the remaining five apartment blocks of the La Casa project in District 7 from Van Phat Hung Group, for VND910 billion (approximately US$40 million).
In the hospitality sector, following the positive momentum in tourism, the Malaysia-based Berjaya Land has locked in the disposal of its 70% stake in a four-star resort property on Phu Quoc Island to Sulyna Hospitality for a total consideration of US$14.65 million. Vietnam’s tourism sector got off to a positive start this year, with approximately 3.2 million international arrivals in the first quarter, an increase of 29% year on- year.
This follows the record number of tourists, over 10 million, arriving in 2016, and the country is expected to welcome 11.5 million international tourists by the end of 2017. Coastal destinations play a key role in drawing in the majority of these visitors from a broad cross-section of source countries. The country is working toward fully harnessing its rich tourism potential in the coming years, as development of the tourism industry has now been made the number one priority for the government.
