TOKYO -- Kajima will begin developing real estate in the burgeoning Vietnamese market, aiming to distinguish itself from other Japanese companies by offering services ranging from planning and design to contracting.
In October, Kajima will establish a joint venture with Hanoi-based Indochina Capital. The new company, ICC-Kajima Development, will focus on such operations as real estate development and investment in Hanoi, Ho Chi Minh City and Danang. Kajima already develops property in four Southeast Asian countries, including Indonesia.
The projects planned are midsize, ranging from 2 billion yen to 10 billion yen ($19.5 million to $97.7 million) each. They would consist mainly of midrise buildings such as hotels for the middle class, apartments with services, and office buildings. The company has also acquired a 13-floor mixed-use facility in Danang to gain local real estate and operating know-how.
Kajima has been expanding its Vietnam business via contract work since it constructed a hotel in 1994. The company established Kajima Vietnam in Ho Chi Minh City this April, as it anticipates increased demand for factory construction with the growth of the Vietnamese economy.
Many other Japanese real estate developers have also entered Vietnam. Kajima looks to highlight its group's ability to take on construction, hoping to set itself apart from others.