Talking with Vietnam News Agency correspondents in Tokyo, Koizumi highlighted the ambition of numerous companies from Japan, the Republic of Korea, and Taiwan (China) seeking to expand operations in Vietnam. They are mostly small and medium-sized enterprises (SMEs) operating in the apparel and footwear industries that often face difficulties in securing long-term leases for land and factories due to high rental costs.

Japanese real estate investment expert Koizumi Kenichi

He said the changes to land ownership rights in Vietnam's Land Law will incentivize more companies to explore purchasing land and building their own facilities instead of incurring rental expenses.

According to him, they will change the way foreign investors view land use rights in Vietnam. If global developers and investors in the U.S., Europe and Southeast Asia incorporate Vietnamese real estate into their property portfolios, it could lead to a revival in property sales across the country. Additionally, allowing individual and high-net-worth investors to purchase land could spark interest in acquiring property in Vietnamese resort areas, such as those on Phu Quoc island.

As a long-time investor in stocks and other assets in Vietnam, he said the amended law will significantly improve Vietnam's investment environment and expand the foothold of foreign investors.

The Japanese investors may consider purchasing land directly as corporate entities in the future to ensure their long-term operations, he said.

Source: VNA