Sanyo Homes Corporation has become the latest Japanese investor to enter Vietnam's real estate market with a US$25-million project in collaboration with local developer Tien Phat Corp., local media reported on Friday.
The 22-story hi-end condominium in Ho Chi Minh City's District 7 is Sanyo Homes' first step in Vietnam, news website Dau Tu said, citing chairman Yasusuke Tanaka.
Before Sanyo Homes, Japanese investors such as Creed Group, Hankyu Realty and Nishi Nippon Railroad have already entered the Vietnamese market through cooperation with local developers.
Toshihiko Muneyoshi, chairman of Creed Group, which pledged $200 million for a residential project in Ho Chi Minh City last year, said in Dau Tu that the housing demand in Vietnam is "huge," given its young population and their growing income.
He said his company is seeking more partners to expand its activities here.
Foreign investors pledged $239.78 million for real estate projects in Vietnam in the first quarter, according to the Foreign Investment Agency. That was an increase of 18 percent from the same period last year, and only came behind the pledges for the manufacturing sector.