TOKYO -- Japan hopes to pave the way for its companies in Vietnam and other Asian markets by exporting techniques for real estate appraisal, creating opportunities by fostering urbanization and financial industries.
Vietnam's northern coastal city of Haiphong will consider introducing the methods this summer with specialists commissioned by Japan's land ministry. Property prices have seemingly been growing as the city urbanizes, but land prices provided by the Vietnamese government do not fully reflect actual market values, leaving the country without a benchmark to use in business.
The Japanese government looks to provide Vietnam with expertise on how to determine its official land prices, a basic guideline for real estate transactions, for free. It will offer calculation methods and help build information technology systems for computing prevailing prices. Appraisals, registration and other tasks will be covered as well.
The land ministry aims to stir more opportunities for Japanese companies. The initiative is expected to benefit a wide variety of businesses, including real estate developers, construction companies, systems developers and financial institutions that provide mortgages. Japan plans to expand it to Bac Giang Province in north Vietnam and Dong Nai Province in the south during fiscal 2019 and reach other countries as well.
Asia's market for infrastructure development is growing as economies develop in the region. Japan aims to get ahead of rivals like South Korea in laying the groundwork for business.