Vietnam’s property market continues to ensnare Japanese firms. The latest: a partnership between Kajima and Hanoi-based developer Indochina Capital, which was unveiled last Friday, will officially begin in October.
The resulting venture, ICC-Kajima, is expected to plough USD1 billion into Vietnam over 10 years, with 50 potential projects in the pipeline, including serviced apartments, hotels, and office buildings. Each project will have an outlay of JPY2 billion (USD19.5 million) to JPY10 billion (USD97.7 million) — four are reportedly set to be launched within 15 months, with a capital totalling USD100 million.
Although this marks Kajima’s first foray into Vietnam real estate development, the Tokyo-based company was contracted for a hotel project in the country in 1994, the Nikkei Asian Review noted. In addition, the firm already develops property in four countries in Southeast Asia.
Kajima will direct efforts to residential projects in Hanoi, Danang, and Ho Chi Minh City, where it established Kajima Vietnam in April. The company has acquired a 13-floor mixed-use facility in Danang.
Several Japanese firms have been involved in various developments around Vietnam in the past year, including Creed Group, Tokyu, Hankyu Realty, Nishi-Nippon Railroad, and Sanyo Homes.