Mr. Vu Thanh Hue, Deputy Chairman and General Director of MBLand Holdings, tells VET about the TPP's impact on Vietnam's property market and how the company plans to seize the opportunities it will bring.
■ With the TPP to be signed on February 4, how do you believe it will impact on Vietnam’s real estate market?
The TPP will change Vietnam’s economy in general and its real estate market in particular. It will also blur the “border” between the 12 members and create a joint economic community.
Vietnamese real estate enterprises will therefore have the opportunity to test their capacity in a broader market with great potential. The challenges that will come will also be many times larger, however.
I think Vietnam’s real estate market will perform strongly in the future.
The TPP results in reductions to or the removal of tariffs in certain sectors, which makes many believe that Vietnam will become a new investment destination for international investors. The property market will benefit from this, especially as new regulations have loosened foreign housing ownership restrictions and foreign investment in Vietnam.
Over recent years many foreign developers have eyed Vietnam’s property market and are keen to enter. Many have had put their plans on hold, though, due to legal obstacles. These days everything has changed.
Land and housing prices in Vietnam, meanwhile, remain lower than in many countries in Southeast Asia.
All of these factors make Vietnam’s property market a great investment destination for foreign investors. The market will become more vibrant with the participation of foreign investors and their stable financial sources, experience, and investment vision.
■ What are your thoughts on the challenges faced by Vietnamese property enterprise like MBLand Holdings as Vietnam takes part in the TPP?
As a business specializing in the finance and property sectors we recognize both the opportunities and challenges brought about by the TPP. We regard its impact as opportunities more so than challenges. MBLand Holdings will be able to cooperate with large brands and partners and expand its business in the future.
■ The TPP is forecast to boost FDI inflows into Vietnam. How is MBLand Holdings preparing to seize the opportunities from this?
To seize the opportunities MBLand Holdings will launch two commercial, office space for lease and residential complexes under the name MBLand Central Point, including MBLand Central Point Trung Kinh and MBLand Central Point My Dinh, with hundreds of high-end to mid-end apartments and high-grade office space for lease.
We also plan to kick off a range of large-scale projects, including a five-star hotel and resort in Khanh Hoa province, the Green City urban area in Ho Chi Minh City, and the Green Valley urban area in Dong Nai province. These are our most notable projects, with investment capital in the tens of millions of dollars each.
■ There has been some discussion about how Vietnamese enterprises can prepare to attract FDI inflows rather than expand their business. What do you recommend Vietnamese enterprises that plan to reach out into the international market do?
To reach out into the international market I think Vietnamese property enterprises need to be fully prepared in financial sources and cash flow arrangement, seek appropriate projects, and select good partners in their targeted markets.
■ What are MBLand Holding’s plans in expanding its business to the international market?
As I have mentioned, financial strength plays an important role in the process of expanding business. We are fully confident about this. Apart from our capacity in arranging our cash flow for each project, being a subsidiary of MBBank also gives us confidence.
We have prepared for the TPP since the early days. MBLand Holdings is now partners of many investment funds and large real estate names in member countries.
We are confident about our development plans in the domestic market and will gradually internationalize the name MBLand Holdings in the time to come.