INTERNATIONAL INVESTMENT
AND PORTAL
The Japan Bank for International Cooperation (JBIC) will lend $36 million to Phuong Nam 3A-1 Real Estate Business and Investment JSC to develop an office building in Ho Chi Minh City.
The office building will be located near Ba Son Station on Metro Line No. 1 (Ben Thanh-Suoi Tien)
According to the announcement on July 16, JBIC has signed a loan agreement with Phuong Nam 3A-1 Real Estate Business and Investment JSC (PN3A-1), in which Japan's Tokyu Corporation holds an indirect investment.
The Japanese urban developer has been engaged in urban development projects in Vietnam, Thailand, and Australia. In Vietnam, Tokyu has formed a joint venture with Becamex IDC Corp. to build urban development projects in Binh Duong New City in the southern province of Binh Duong.
Based on its track record, Tokyu will collaborate with RC Real Estate Development and Finance Corporation (REFICO) and others to build an office building in Ho Chi Minh City.
The office building will be located near Ba Son Station on Metro Line No. 1 (Ben Thanh-Suoi Tien), the municipal city's first urban railway project. As one of the few Grade A office buildings in Ho Chi Minh City, the project will contribute to the development of a new international commercial hub.
As a Japanese public financial institution, JBIC will continue to provide financial support for Japanese companies' overseas business expansion.
According to a report by Savills Vietnam, the Grade A-Suburban office segment in Ho Chi Minh City showed robust performance in the second quarter of 2024. Rents increased to VND815,000 ($32.22) per square metre per month (up 2 per cent on-quarter, 8 per cent on-year) with occupancy rising to 84 per cent. The market continues to attract strong interest from foreign and local sectors, driven by upcoming grades B and C projects and positive economic growth indicators.
The report shows that Ho Chi Minh City anticipates over 179,949sq.m of new supply by 2026, emphasising sustainable grades A and B developments. Economic growth and a steady influx of new businesses are expected to sustain office market demand.
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By Thanh Van
