Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade LTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL LTCUSD | View LTCUSD News & Updates


Buy Sell LTCUSD, Bitcoin and Cryptocurrencies

Foreign money lands in tourism sector pool   2009-01-01 - VIR

The rich potential of Vietnam’s tourism sector is too hard to ignore for many developers.

The cooling real estate market has not hindered foreign investors from pouring money into resort and hotel development.

 

The potential recently saw Vietnam-Spain Consultants Company (VS Consultants) signed a memorandum of understanding to buy 20 per cent, or six million shares priced at VND18,000 ($1.06) per share of local Vinaconex Investment and Tourism Company (Vinaconex ITC).

VS Consultants has also poured money into building some parts of the Cai Gia-Cat Ba tourist urban area, the biggest tourism project in northern Vietnam, which is being developed by Vinaconex ITC. The project comprises modern villas, an international convention centre, underwater palace, beaches, trade centers and highclass hotels.

The State Reserve Fund Oman (SGRF) had previously also invested $20 million in the project. Vinaconex ITC general director Tran Ngoc Quang said although the current cooling real estate market was clearly seen in the land and apartment segments, supply for tourist resorts, offices and industrial parks could not meet demand.

General secretary of the Ho Chi Minh City Real Estate Association, Do Thi Loan, said foreign investors had also been interested in building trade centres in Vietnam. Demand for these centres was predicted to be much higher in the next few years after Vietnam opens up its domestic market for the establishment of 100 per cent, foreign-owned distribution firms from January 1, 2009.

VinaCapital is to raise another real estate investment fund which will issue shares worth up to $400 million and is scheduled to start operate in early 2009 to prepare for investment opportunities in the Vietnamese market. David Blackhall, VinaCapital deputy managing director, said foreign investors were interested in Vietnam`s real estate market and had prefered building unlisted investment funds in the country.

There would remain difficulties in the local real estate market in 2009, but it would recover and grow again in late 2009, Blackhall said. According to the projection of AIC general director, Gary McKinnon, construction costs would continue to decrease in the first quarter of 2009. Investors were also forecast to enjoy greater access to bank loans with lower interest rates.Land and house prices in major cities has so far declined by 40 per cent from early last year.



Other news

Electronics prices expected to fall   2009-01-01

Vietnam opens wider for business, says US online newspaper   2009-01-01

Golden FDI flows amid the gloom   2009-01-01

Stock market wraps up 2008 with slight fall   2009-01-01

Vietnam targets exports of 72 billion USD for 2009   2009-01-01

Electricity sector expects 12.5 percent rise in output   2009-01-01

Industry insiders call VN real estate market a sleeping giant   2009-01-01

Hanoimilk rebounds from tainted milk scandal   2009-01-01

Public workers stymieing administrative reform: businesses   2009-01-01

Steel pipe maker says profits on target   2009-01-01

10 most outstanding features of the banking market in 2008   2008-12-30

Car prices expected to drop further   2008-12-29

Banks likely to fall short of revenue targets   2008-12-29

Good news fails to lift VN-Index   2008-12-29