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Vietnam experiences continued growth

Two large developers have begun plans to invest millions into Vietnam.

One of the largest developers in Vietnam, Keppel Land, has drawn up plans for a major expansion in Ho Chi Minh City. This proposed development will expand the mixed-use facility within the Saigon Centre.

With phase 1 of the Saigon Centre completed in 1996, the 25 story building which includes 3 levels of retail space, 11 levels of office space and 11 levels for apartments and parking, the Saigon Centre has been very successful. All of the office and retail spaces are leased with rare vacancies. The apartment levels are just as successful and considered to be some of the most sought after rental properties because of the location. The Saigon Centre itself represents cooperation between both Vietnam and Singapore based developers. While plans for expanding the Saigon Centre are only in their conceptual phase, there is no doubt that development will more forward because of the attention the Vietnamese property market has been garnering as of late.

CapitaLand is the other large developer locking their sights in Vietnam. Considered to be the largest propety developer in Southeast Asia, CapitaLand is planning on setting up a US$300 million fund for Vietnamese real estate investment. The company sites Vietnam's strong economic growth and urbanisation projects as the reasons for investing in the country. Currently CapitaLand expects their residential properties to more then double from 2,800 to 6,000 within the next 3 years.

There is more good news on the horizon for investors in the Vietnamese property markets. Changi Airports International has forged an agreement with the Vietnamese Airport Authority to invest, create and run a new International Airport in the city of Hue.