Analysis of the Vietnamese commercial real estate market : Strategic investment implications for Evergreen Properties of Michigan, Inc.
Bui, Thao (2013)
Lahden ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201303062981
https://urn.fi/URN:NBN:fi:amk-201303062981
Tiivistelmä
In the last decade, Vietnam has emerged as one of the fastest growing economies in the world. The Vietnamese commercial real estate industry is among markets attracting a major share of foreign investment. Consequently, a medium-sized real estate company in the U.S. raised its interest in the new market and assigned the author to do initial market research.
This research aims at assisting the case company in answering the question of whether investment in Vietnam should be added to its growth strategies. In order to achieve this purpose, the case company requested the author to focus on different aspects such as: relevant information about Vietnam as a target country, characteristics of the Vietnamese commercial real estate industry, and strategic investment implications in light of the case company’s current situation. A combination of theories is adopted to facilitate the process of gathering the requested information. This process involves the external analysis of Vietnam and the Vietnamese commercial real estate industry, the internal analysis of the case company, and strategy formulation with international entry mode selection.
An inductive approach is employed in parallel with a qualitative research method in this thesis. Data is collected from various sources, including: books and journals in the theoretical framework, and legal documents, newspapers, published real estate reports, personal observations, and the company’s unpublished reports in the empirical study.
The analyses reveal that the Vietnamese commercial real estate market has massive potential for the case company but is a risky market with some of the fundamental problems of a new market, such as lack of transparency and inefficient legal frameworks. Overall, the author highly recommends that the case company invest in Vietnam’s commercial real estate market, especially in Ho Chi Minh City, utilizing joint venture as the mode of entry with a focus on retail and office properties. Further research is strongly advised for deeper knowledge of the market once the case company determines to internationalize to Vietnam.
This research aims at assisting the case company in answering the question of whether investment in Vietnam should be added to its growth strategies. In order to achieve this purpose, the case company requested the author to focus on different aspects such as: relevant information about Vietnam as a target country, characteristics of the Vietnamese commercial real estate industry, and strategic investment implications in light of the case company’s current situation. A combination of theories is adopted to facilitate the process of gathering the requested information. This process involves the external analysis of Vietnam and the Vietnamese commercial real estate industry, the internal analysis of the case company, and strategy formulation with international entry mode selection.
An inductive approach is employed in parallel with a qualitative research method in this thesis. Data is collected from various sources, including: books and journals in the theoretical framework, and legal documents, newspapers, published real estate reports, personal observations, and the company’s unpublished reports in the empirical study.
The analyses reveal that the Vietnamese commercial real estate market has massive potential for the case company but is a risky market with some of the fundamental problems of a new market, such as lack of transparency and inefficient legal frameworks. Overall, the author highly recommends that the case company invest in Vietnam’s commercial real estate market, especially in Ho Chi Minh City, utilizing joint venture as the mode of entry with a focus on retail and office properties. Further research is strongly advised for deeper knowledge of the market once the case company determines to internationalize to Vietnam.