Vietnam considers the upgrading of infrastructure as one of its top priorities. An ADB report shows that investment in infrastructure in Vietnam has been 5.7 percent of GDP in recent years, the highest level in SE Asia and second highest in Asia.
Most recently, a group of Chinese investors, including Sunshine Kaidi, have expressed interest in investing in Long Thanh Airport through a joint venture with a Vietnamese conglomerate – Geleximco — which would develop the project under the PPP mode.
Long Thanh Airport, covering an area of 5,000 hectares, will require investment capital of up to $15.8 billion.
Hong Kong investors once showed interest in developing a north-south highway, 1,300 kilometers long and capitalized at billions of dollars. They also expressed interest in the railway system in the Mekong area, connecting the railway and seaport system in Cambodia.
|Vietnam considers the upgrading of infrastructure as one of its top priorities. An ADB report shows that investment in infrastructure in Vietnam has been 5.7 percent of GDP in recent years, the highest level in SE Asia and second highest in Asia.|
Meanwhile, Hong Kong Alpha King has taken over Saigon One Tower which faces two large streets Ham Nghi and Ton Duc Thang in central district 1 in HCMC. Summerfield has stated it wants to buy the $2 billion Happy Land project in Long An province from Khang Thong Group.
JLL reported that hundreds of millions of dong are expected to flow to the Vietnamese real estate market. The investors mentioned in the report include those from China.
Analysts commented that Chinese cash flow appears to target transport infrastructure items in Vietnam and adjacent properties, which can help increase the value of properties.
However, the Chinese movement of making outward investment in recent years has raised concerns that Chinese are trying to wash money or move their assets for overseas settlement.
The Chinese government has promulgated a new regulation with restrictions in the investments in real estate, movie and sports clubs overseas. However, it encourages investments in infrastructure projects under the ‘One Belt, One Road’ strategy.
In the case of Long Thanh Airport, experts say the low-interest rate capital flow from China would bring an effective financial solution for Vietnam. However, the government of Vietnam needs to pursue a wise strategy in using capital sources to avoid disadvantages and ensure the quality of the work.
Besides Chinese investors, French firm ADP, South Korean Samsung and Incheon and Japanese conglomerates have shown interest in the project.