The partnership between PVI AM and SK Capital marks a significant milestone in the development of specialised real estate investment solutions, while also opening doors for investors to access Vietnam’s dynamic property market.

The two entities will collaborate to introduce new investment products, including Real Estate Investment Trusts , real estate securities, and other flexible investment structures. This collaboration promises sustainable asset growth opportunities by leveraging the immense potential of Vietnam’s real estate sector.

By leveraging their respective expertise, PVI AM and SK Capital aim to deliver structured investment products that optimise risk-adjusted returns and meet the evolving demands of sophisticated investors.

At the signing ceremony, Trinh Quynh Giao, CEO of PVI AM said, “The synergy between PVI AM’s asset management expertise and SonKim Group’s proven track record in real estate development will create compelling investment opportunities tailored to high-end investors.”

“We expect this collaboration will bring forth investment products that are not only sustainable and transparent but also capable of generating long-term value for our investors.”

Nguyen Hoang Tuan, chairman of SonKim Group, and Jens Holger Wohlthat, chairman of the Board of Directors at PVI Holdings

James Kershek, CEO of SonKim Capital, also expressed his enthusiasm, saying, “SonKim Capital is thrilled to join in this partnership with PVI Asset Management. SonKim Group has long established itself as a premier real estate developer in Vietnam while delivering impressive investment returns to its investors. Now it is time to extend these services to the broader market through this partnership to deliver new and innovative investment solutions.”

PVI AM is a asset management company under PVI Holdings, a leading non-life insurance and financial investment company in Vietnam. PVI AM specialises in providing professional investment solutions for institutional and individual investors, managing a diversified portfolio that includes fixed-income, equities, and alternative investments. With total assets under management and investment advisory exceeding VND16 trillion ($626 million), PVI AM is committed to delivering sustainable value and innovative investment strategies.

SonKim Group, a leading professional real estate developer in Vietnam, is known for high-end projects such as The Metropole Thu Thiem, The 9 Stellars, Serenity Sky Villas, Gateway Thao Dien, Nassim, and JW Marriott Cam Ranh.

In addition to real estate development, SonKim Group also owns and operates retail businesses including GS25 – a lifestyle convenient store platform, fashion brands such as Vera and Jockey, and the ON25 e-commerce platform. Leveraging its extensive capabilities in real estate development and property management, SonKim Group is now expanding into the development of investment products and services tailored for a broader market.

SonKim Capital, a business unit under SonKim Group, specialises in capital raising and creating investment products across industry sectors by extending SonKim Group’s proven internal capabilities in real estate development, retail, and property management to the broader market.

Some domestic companies are looking to produce new rail carriages

The National Assembly Standing Committee on March 10 discussed draft amendments to the railway regulations, with supporting policies that are expected to help increase private participation in the industry, improve operation quality, reduce financial pressure on the state, and ensure control over public assets.

The draft adds several regulations to maximise the mobilisation of resources for railway infrastructure development, in which the state budget plays a leading role. It will encourage organisations and individuals to participate in investing in railway infrastructure through many different models, such as build-transfer, build-operate-transfer, leasing, and more.

It also supplements regulations on using land near railway stations to maximise resources for developing railway infrastructure and specifying responsibilities.

Another notable point is regulation on leasing and transferring for a limited period and the right to operate railway infrastructure assets invested in by the state.

Deputy Minister of Construction Nguyen Danh Huy said, “The objective of the draft is to continue institutionalising the Party and state’s policies and guidelines on railway development; solving existing institutional shortcomings and inadequacies, creating new momentum, and encouraging the competitiveness of railway transport.”

The amendment focuses on five important innovations to create a legal corridor for railway development: infrastructure development, infrastructure management and operation, railway transport activities, connections, and industrial and personnel development.

In a study of almost 30 public-private partnership (PPP) railway infrastructure projects worldwide, very few were successful due to large investment capital requirements and difficulties in getting capital return, Huy said.

“Meanwhile, private participation in transport operation, transport services, and value-added service business at stations and around stations have proved effective. Therefore, the draft should have special policies to lure private investment,” he added.

Experts have said that some specific amendments should be added to increase feasibility and enable investors. Prof. Dr. Bui Xuan Phong, former chairman of the Vietnam Railway Transport and Economics Association, said, “It is necessary to propose specific solutions and incentive policies to remove obstacles and accelerate investment in urban railway systems, while ensuring capital support for railway investment, and urban railways in particular.”

Senior railway expert Nguyen Ngoc Dong added that countries around the world mainly invest in high-speed railways for passenger transport, while freight transport is also being exploited in some countries, but not widely.

“High-speed rail investment around the world is mostly in the form of public investment. A few routes are invested in the form of PPP but still need large state support such as support for construction costs or in the form of state payment for operating and maintenance costs to reduce revenue risks for investors,” he said.

He suggested that it was necessary to supplement the draft law with regulations on the role of the state in mobilising resources to prioritise investment in developing high-speed railways, and the responsibility of localities participating in high-speed railway projects.

According to the Vietnam Railway Authority, a number of foreign-invested enterprises and domestic ones are interested in the industry. For instance, last week, a delegation of Chinese businesses worked with the authority on the possibilities of cooperating in railway projects.

Tran Thien Canh, director of the Vietnam Railway Authority, told VIR, “These businesses are interested in the Lao Cai to Haiphong railway, Hanoi to Dong Dang, and others. We are discussing on how we will cooperate.”

The 390-km Lao Cai-Haiphong railway plans to have a total capital of $8.37 billion, connecting nine cities and provinces including the capital of Hanoi. The plan is for it to be completed by 2030.

Also in early March, China Railway Second Bureau worked with authorities in the Central Highlands province of Lam Dong on restoring the historic Dalat-Thap Cham railway, which was constructed between 1908 and 1932 and was known as the world’s first mountain railway.

Guan Huapinh, deputy general director of China Railway Second Bureau, said that the group has carried out many railway and transport projects in 50 countries and territories, and expressed interest in the restoration. “We hope Lam Dong will provide information on the planning related to the railway. After that, we will prepare a feasibility report and make the next steps,” he said.

In 2024, Vietnam Railways received many international business delegations seeking cooperation opportunities in the industry, including operation, maintenance and implementation of railway projects, including the Trans-Asian Railway. They also included Indonesian Railways.

Seeing the potential, domestic private investors are looking to get involved. Specifically, Hoa Phat Steel and THACO are preparing to join the North-South high-speed railway by producing both rails and carriages.

Hoa Phat is prioritising the completion and operation of the Hoa Phat Dung Quat 2 iron and steel complex to ensure stability and will continue to invest in developing high-quality steel products in Dung Quat Economic Zone, aiming to be self-sufficient to supply key projects, of which priority has been given to the North-South high-speed railway.

Meanwhile, THACO has invested heavily, developing an advanced electrical equipment factory, a modern auto glass factory, and a precision mechanical factory to meet domestic and export demand, as well as plans to build high-speed rail carriages.