2nd June 2021
"The Shenzhen of Tomorrow" - Hai Phong, Vietnam
The Minato Residence
The First 100% Japanese-Invested Condominium Development in Hai Phong
Vietnam’s remarkable economic progress looks set to continue, despite a global slowdown in 2020 due to the Trade War and pandemic. Foreign firms, including those from China, are taking advantage of Vietnam’s attractive business environment. In Hai Phong, Northern Vietnam, investments are accelerating. A long-term, export-drive vision has handed Hai Phong the title of Vietnam’s fastest-growing city as a deep-sea port with the highest GDP growth across the country.
A new middle-class is rising and international businesses are pouring into Hai Phong, a fledging real estate market with extremely tight supply. Asia Bankers Club presents – The Minato Residence, a 100% Japanese-invested residential development by Fujita and Takara Leben. The Minato Residence is one of the first condominium developments in Hai Phong. Prices begin from merely HKD 1M.
Fujita Vice President, Mr. Tatsuji Kamada remarks: “Hongkong investors have been keen on Vietnamese investments. We are happy to announce our partnership with Golden Emperor, Asia Bankers Club and Ashton Hawks who have been highly-experienced in the Vietnamese market. The Minato Residence by Fujita and Takara Leben, which is to launch exclusively in Hong Kong, will be a highlight of the market this year. It is also the first 100% Japanese-invested development in Hai Phong.”
Foreign firms relocate production lines amid Trade War
Vietnam has followed an export-led growth model, combining trade liberalization and foreign direct investments to spur exports. The US-China Trade War and the pandemic has further prompted international firms to relocate their production line to Vietnam. As the country’s 3rd largest city with a population of 2.02 million, Hai Phong has transformed into a major economic player. Multinational electronics company, LG, relocated its production line to Hai Phong in June, while Apple’s assembly partner Pegatron Corp., plans to invest USD $1 billion in the northern port city.
Favorable geographic conditions
Hai Phong has a strategic location to serve as a deep-sea outport for Northern Vietnam and southwestern China. Foreign firms from USA, Korea, Taiwan and Hong Kong have turned to the city for its impeccable connectivity to China. As the only deep-sea port in the region, Hai Phong promises manufacturers a reduced production cost to transport materials and items across borders and countries. The China-Vietnam ‘Two Corridor, One Belt’ initiative places Hai Phong as the spearhead of economic modernization in Northern Vietnam to foster connectivity across Eurasia.
The country’s highest GDP above Hanoi & HCMC
Vietnam’s GDP has rapidly increased in recent years. The International Monetary Fund (IMF) predicts that Vietnam’s GDP will likely surpass Singapore by 2020 to become one of the four largest ASEAN economies along with Thailand, Indonesia and Philippines. Internally, Hai Phong saw a GDP growth of 16.7% in 2019, the highest of the country – doubled that of Hanoi’s 7.5%.
Asia Bankers Club Founder and CEO, Kingston Lai explains: “Vietnam is the ultimate winner of the Trade War. It was the first country to see a V-shaped economic rebound and is predicted to emerge as the leading economy in ASEAN. Hai Phong is the country’s rising power for its strategic location only hours away from China. As foreign investments pour into the city, a tight residential supply will drive Hai Phong’s property market.”
‘China +1’ and resemblance to the Shenzhen success story
Hai Phong is home to 13 industrial zones. Dinh Vu and Deep C are the most comprehensive industrial zones in Hai Phong, covering over 1,000 hectares of logistics and industrial landscapes and infrastructure developments. Hai Phong itself, has stepped up its infrastructure system. Developments include the USD 155 million Cat Bi Airport Terminal 2 expansion, the USD 1 billion deep-sea port expansion, and the Hanoi-Hai Phong Highway, shortening driving time to 1.5 hours to Hanoi and 50 minutes to Ha Long Bay. Trucking time from Ha Long Bay to Mong Cai on the Vietnam-Chinese border will also be reduced. By then, Hai Phong is set to be a major trade gateway to facilitate world-class land, sea, and air transport.
Golden Emperor Director and Partner, Ivan Yam, says, “The rise of Shenzhen during the past four decades is one of the greatest success stories in world economic history. Under the ‘China +1’ strategy, Vietnam is becoming the new face of manufacturing. As a deep-sea port, Hai Phong benefits from continued investments, of which have poured into its industrial parks including the Shenzhen–Haiphong Economic and Trade Cooperation Zone and the Singapore VSIP. The emergence of Hai Phong resembles the success story of Shenzhen, now one of the most lucrative property markets in the region.”
Hai Phong’s first 100% Japanese-invested residence
Asia Bankers Club launches The Minato Residence, a 100% Japanese-developed residential project in Hai Phong. The Minato Residence is situated in Hai Phong CBD, Le Chan, surrounded by an array of entertainment and lifestyle facilities. The development is set to house 462 one- to three-bedroom units and selected terraced units, ranging from 40.9 to 111.3 square meters with basic finishing included. Prices begin from only HKD 1M or HKD 1,500 per square feet. Expected rental yield is projected at 10% per annum.
Ashton Hawks Director, Frederick Ho, explains, “The Minato Residence is situated in the core CBD next to one of the most established landed property developments in Hai Phong. It’s a 15-minute walk to the future Aeon Mall and steps to international schools and a medical centre. It will be a 15-minute drive to FLC Diamond 72 Tower City, the tallest skyscraper in Hai Phong, when it completes. Hai Phong is seeing an extremely tight residential supply. The Minato Residence will not only provide foreign professionals a place to live, but a highly-desirable community for the city’s rising middle-class.”
The exclusive launch of The Minato Residence will take place at the Ritz Carlton Hong Kong on November 21st to 22nd, 2020.
Fujita was established in 1910 as a subsidiary of Daiwa House Group, Japan’s largest developer. Fujita has been listed on the Tokyo Stock Exchange since 1963.
About Takara Leben
Takara Leben is one of the top 10 condominium developers in Japan and was established in 1972. The company was listed on the Tokyo Stock Exchange in 2004.
About Asia Bankers Club
The Asia Bankers Club is an investment club for banking and finance professionals in Asia. With a member base of over 50,000, the Asia Bankers Club organizes events for its members and provides physical assets for investments, such as properties, fine wines, art, timepieces, and collectibles. Our members are from top tier investment, private and consumer banks, asset management companies, private equity firms, hedge funds, and sovereign wealth funds primarily located in key financial centers.