Will investors be attracted to Vietnamese Real Estate Investment Fund?

Japan Asia Securities plans to sell from mid-April what it claims to be Japan's first publicly traded investment trust fund products that invest in planned real estate development projects in Vietnam, informed sources said.

The Tokyo-based brokerage house expects brisk demand for investment in Vietnam, which is regarded as a promising emerging economy following the so-called BRIC economies of Brazil, Russia, India and China.

A Hong Kong firm will undertake management of the investment trust fund with advice from a Japanese real estate company that has ties with some Vietnamese firms.

A minimum investment amount is expected to be set at one million yen, with an investment period of three years, which may be extended by two years.

On the back of an inflow of overseas capital, demand for the development of real estate such as hotels, offices and housing is increasing rapidly in Vietnam, according to the sources.

Japan Asia Securities plans to attract investors through its Vietnam investment seminars and Internet advertising.

Does Japan Asia’s move show that the foreign investment flow into Vietnam is set to continue?