With the current economic growth rate, the real estate in the Southwest region is entering the golden period with positive signals.
Holding a very important position in politics, economy, society, security and defense and in trade with ASEAN countries, the Mekong Delta has received priorities from the Government to upgrade infrastructure development and strongly attract domestic and foreign investment capital. Therefore, it is considered to have many internal resources for real estate development in the coming time.
Taking local internal resources into consideration, the first to be mentioned is the Mekong Delta is the largest agricultural producer of Vietnam, which creates jobs for 65% of the population. Prominently, An Giang province is located in the Mekong Delta key economic region, which is considered a rice bowl of the country and a destination with many cultural and historical relics and landscapes.
In FDI attraction, the Southwest region has a lot of growth potential, with Long An province being a leader in FDI attraction. Kien Giang ranked second in this effect, followed by Bac Lieu, Can Tho, Tra Vinh and Ca Mau. Specifically, Kien Giang has many advantages for developing tourism, trade, service and real estate and it advances dynamic urban development as leverage for socioeconomic development.
According to expert investors, the Southwest real estate market is much more vibrant than it was five years ago as it has a large land bank and the price is still low. With solid legal status, affordable prices and attractive discount incentives, property projects have good absorption, with a 2-5% increase in sales in each new phase. Notably, the apartment segment is forecast to thrive in An Giang, Hau Giang and Can Tho.
A boost needed
According to World Bank data, when the quality of transport infrastructure rises by 1%, FDI value per capita will increase by 2.4%. Experts and businesses said that, to optimize and reduce logistics costs for the Mekong Delta region, it is necessary to create a breakthrough in policies and institutions to attract investment capital for the logistics development.
According to information released at the Workshop on "Clearing highways - Promoting Mekong Delta advantages", the Mekong Delta will have 760km of new highways by 2030 and about 420km more after 2030.
Specifically, the region will complete My Thuan-Can Tho Expressway and My Thuan 2 Bridge; complete Can Tho-Ca Mau Highway (109km), Chau Doc - Can Tho - Soc Trang Highway (188km), My An-Cao Lanh Highway (26km), Cao Lanh-An Huu Highway (27km), and Cao Lanh-Lo Te-Rach Soi Highway (80km) in 2021- 2025.
The big concern of investors to invest in central areas is circulation. Therefore, when macro policies, laws and investment packages are initiated, they will make changes in the real estate market.
Based on economic growth, the investment trend in Southwest real estate is moving in the right way. To have a sustainable real estate market, in the coming time, the Southwest region needs more support to accelerate investment capital flows in energy, science and technology, transport infrastructure, environmental improvement and investment for people and businesses.
With the Government's commitments to develop many logistics transport infrastructure projects, the Mekong Delta is likely to make robust economic development including industrial development and real estate development.
An Giang: "Rising star"
In recent years, An Giang has emerged as an attractive real estate investment destination in the Southwest region with many attention-grabbed projects. Lying in the Mekong Delta key economic region and having the largest population in the region, An Giang owns a fairly large area, including many beautiful landscapes, magnificent mountains and rivers.
On public holidays, tourist arrivals to An Giang increase dramatically. During four public holidays celebrating Victory Day and May Day in 2022, an estimated 300,000 domestic and foreign tourists visited this locality, an increase of 51% over the same period in 2021. Most went to Cam Mountain, Tra Su Melaleuca Forest and Ba Chua Xu Temple in Sam Mountain. Thanks to its spiritual tourism, the province has distinctively a high rate of returning visitors and forms a busy trade flow. In order to promote this strength, An Giang needs to have more tourism infrastructure development programs and apply incentive policies to attract tourism investors.
Another advantage of An Giang is the well-connected transport infrastructure, including a traffic route linked to National Highway 91 and the bypass of Long Xuyen City and possibly recently proposed Chau Doc-Can Tho-Soc Trang Expressway. In 2021-2025, the province will focus on investing in key transport infrastructure, especially provincial roads, solve traffic "bottlenecks" and open new expectations for real estate development.
With rapid urbanization, Long Xuyen City of An Giang province was recognized as a first-grade provincial city, and Chau Doc City as a second-grade provincial city which is expected to become first grade by 2025, a move to strengthen the synergy of socioeconomic development.
An Giang is aimed to become a dynamically developing economic center in the Southwest region and become a favored destination of many investors.
Nguyen Tran Vinh Quang
General Director of Nam Mien Tay Real Estate Services Joint Stock Company
Source: Vietnam Business Forum
Vietnamese
October 2024
Hanoi