IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v94y2020ics0264837719305344.html
   My bibliography  Save this article

International Real Estate Investment and Urban Development: An Analysis of Korean Activities in Hanoi, Vietnam

Author

Listed:
  • Kim, Hyung Min

Abstract

Foreign Direct Investment (FDI) has been recognised as a major influence upon urban development within emerging economies. As the focus of production shifted toward higher skills and advanced technologies, expatriate high-skilled employees of the Multinational Enterprises (MNEs) began to play a significant role in FDI projects and recipient cities begin to experience urban development associated with residential development and community services for the settlement of these expatriate staff. This research reports on the experience of Korean investment in real estate following earlier projects in manufacturing activity in the Hanoi Capital Region. Korean investors are currently the largest FDI source in Vietnam and Hanoi has been favoured by them. The purpose of this research is to examine that the urban impact of manufacturing FDI on a recipient city is magnified by its connections with Real estate FDI (RFDI) in a way that it spurs (1) intensified real estate development, (2) the creation of new urban cores, and (3) new commuting patterns. The clustering of Korea-specific residential development and service functions is a contribution to change in Hanoi. The Korean-built housing complexes have transplanted Korean-style housing design into gated communities and the residents continue their Korean life-styles with easy access to language-specific community facilities. This research sheds light on the coalescent nature of RFDI with overall FDI via flows of MNEs and expatriate staff that can generate direct and indirect spatial impacts at project, city and regional scales.

Suggested Citation

  • Kim, Hyung Min, 2020. "International Real Estate Investment and Urban Development: An Analysis of Korean Activities in Hanoi, Vietnam," Land Use Policy, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719305344
    DOI: 10.1016/j.landusepol.2020.104486
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719305344
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.landusepol.2020.104486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dallas Rogers & Chyi Lin Lee & Ding Yan, 2015. "The Politics of Foreign Investment in Australian Housing: Chinese Investors, Translocal Sales Agents and Local Resistance," Housing Studies, Taylor & Francis Journals, vol. 30(5), pages 730-748, July.
    2. C.F. Sirmans & Elaine Worzala, 2003. "International Direct Real Estate Investment: A Review of the Literature," Urban Studies, Urban Studies Journal Limited, vol. 40(5-6), pages 1081-1114, May.
    3. Thomas Bauer & Gil Epstein & Ira Gang, 2005. "Enclaves, language, and the location choice of migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 649-662, November.
    4. Hyung Min Kim, 2017. "Ethnic connections, foreign housing investment and locality: a case study of Seoul," International Journal of Housing Policy, Taylor & Francis Journals, vol. 17(1), pages 120-144, January.
    5. Henry Wai-chung Yeung, 2009. "Regional Development and the Competitive Dynamics of Global Production Networks: An East Asian Perspective," Regional Studies, Taylor & Francis Journals, vol. 43(3), pages 325-351.
    6. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    7. Chris Hamnett & Jonathan Reades, 2019. "Mind the gap: implications of overseas investment for regional house price divergence in Britain," Housing Studies, Taylor & Francis Journals, vol. 34(3), pages 388-406, March.
    8. Andrew Cook, 2010. "The Expatriate Real Estate Complex: Creative Destruction and the Production of Luxury in Post‐Socialist Prague," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(3), pages 611-628, September.
    9. Hyung Min Kim & Kevin O’Connor, 2019. "Foreign direct investment flows and urban dynamics in a developing country: a case study of Korean activities in Suzhou, China," International Planning Studies, Taylor & Francis Journals, vol. 24(2), pages 125-139, April.
    10. Llerena Guiu Searle, 2014. "Conflict and Commensuration: Contested Market Making in India's Private Real Estate Development Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(1), pages 60-78, January.
    11. Henry Wai-chung Yeung & Neil Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Taylor & Francis Journals, vol. 91(1), pages 29-58, January.
    12. C.P. Pow, 2017. "Courting the ‘rich and restless’: globalisation of real estate and the new spatial fixities of the super-rich in Singapore," International Journal of Housing Policy, Taylor & Francis Journals, vol. 17(1), pages 56-74, January.
    13. Henry Wai-chung Yeung & Neil M. Coe, 2015. "Toward a Dynamic Theory of Global Production Networks," Economic Geography, Clark University, vol. 91(1), pages 29-58, January.
    14. Annette M. Kim, 2012. "Seeds of Reform: Lessons from Vietnam about Informality and Institutional Change," International Economic Journal, Taylor & Francis Journals, vol. 26(3), pages 391-406, September.
    15. Kim, Annette M., 2007. "North versus South: The Impact of Social Norms in the Market Pricing of Private Property Rights in Vietnam," World Development, Elsevier, vol. 35(12), pages 2079-2095, December.
    16. Peter Hall, 2009. "Looking Backward, Looking Forward: The City Region of the Mid-21st Century," Regional Studies, Taylor & Francis Journals, vol. 43(6), pages 803-817.
    17. Hyung Min Kim, 2017. "Ethnic connections, foreign housing investment and locality: a case study of Seoul," European Journal of Housing Policy, Taylor and Francis Journals, vol. 17(1), pages 120-144, January.
    18. Alan J. Ziobrowski & Richard Curcio, 1991. "Diversification Benefits of U.S. Real Estate to Foreign Investors," Journal of Real Estate Research, American Real Estate Society, vol. 6(2), pages 119-142.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O'Connor, Kevin & Fuellhart, Kurt & Kim, Hyung Min, 2020. "Economic influences on air transport in Vietnam 2006–2019," Journal of Transport Geography, Elsevier, vol. 86(C).
    2. Lisha He & Mia M Bennett & Ronghao Jiang, 2022. "The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks," Environment and Planning A, , vol. 54(4), pages 653-675, June.
    3. Han, Yang & Zhang, Haotian & Zhao, Yong, 2021. "Structural evolution of real estate industry in China: 2002-2017," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 45-56.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gong, Qiang & Wang, Kun & Fan, Xingli & Fu, Xiaowen & Xiao, Yi-bin, 2018. "International trade drivers and freight network analysis - The case of the Chinese air cargo sector," Journal of Transport Geography, Elsevier, vol. 71(C), pages 253-262.
    2. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    3. Fuenfschilling, Lea & Binz, Christian, 2018. "Global socio-technical regimes," Research Policy, Elsevier, vol. 47(4), pages 735-749.
    4. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    5. Lisha He & Mia M Bennett & Ronghao Jiang, 2022. "The uneven geography of real estate investment by Mainland Chinese state-owned and private enterprises in the U.S.: Local market conditions, migration, and ethnic networks," Environment and Planning A, , vol. 54(4), pages 653-675, June.
    6. Neilson, Jeffrey & Dwiartama, Angga & Fold, Niels & Permadi, Dikdik, 2020. "Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector," World Development, Elsevier, vol. 135(C).
    7. Giorgos Galanis & Ashok Kumar, 2018. "A dynamic spatial model of global governance structures," Working Papers PKWP1804, Post Keynesian Economics Society (PKES).
    8. Hila Zaban, 2020. "The real estate foothold in the Holy Land: Transnational gentrification in Jerusalem," Urban Studies, Urban Studies Journal Limited, vol. 57(15), pages 3116-3134, November.
    9. Rikap, Cecilia, 2022. "Becoming an intellectual monopoly by relying on the national innovation system: the State Grid Corporation of China's experience," Research Policy, Elsevier, vol. 51(4).
    10. Rikap, Cecilia & Flacher, David, 2020. "Who collects intellectual rents from knowledge and innovation hubs? questioning the sustainability of the singapore model," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 59-73.
    11. Verbeke, Alain & Hutzschenreuter, Thomas & Pyasi, Nishant, 2021. "The dark side of B2B relationships in GVCs – Micro-foundational influences and strategic governance tools," Journal of Business Research, Elsevier, vol. 135(C), pages 816-828.
    12. Pipkin, Seth & Fuentes, Alberto, 2017. "Spurred to Upgrade: A Review of Triggers and Consequences of Industrial Upgrading in the Global Value Chain Literature," World Development, Elsevier, vol. 98(C), pages 536-554.
    13. Dennis Arnold & Martin Hess, 2017. "Governmentalizing Gramsci: Topologies of power and passive revolution in Cambodia’s garment production network," Environment and Planning A, , vol. 49(10), pages 2183-2202, October.
    14. Oya, Carlos & Schaefer, Florian, 2021. "The politics of labour relations in global production networks: Collective action, industrial parks, and local conflict in the Ethiopian apparel sector," World Development, Elsevier, vol. 146(C).
    15. Iliopoulos, Panagiotis (Takis), 2022. "A quantitative analysis of governance structures in the world economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 599(C).
    16. Kwame Addae‐Dapaah & Wilfred Tan Yong Hwee, 2009. "The unsung impact of currency risk on the performance of international real property investment," Review of Financial Economics, John Wiley & Sons, vol. 18(1), pages 56-65, January.
    17. Hamilton-Hart, Natasha & Stringer, Christina, 2016. "Upgrading and exploitation in the fishing industry: Contributions of value chain analysis," Marine Policy, Elsevier, vol. 63(C), pages 166-171.
    18. Kim, Jinhee & Lee, Keun, 2022. "Local–global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    19. Huiwen Gong & Robert Hassink & Cassandra Wang, 2021. "Strategic coupling and regional resilience in times of uncertainty: the industrial chain chief model in Zhejiang, China," PEGIS geo-disc-2021_06, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    20. Magnani, Giovanna & Zucchella, Antonella & Strange, Roger, 2019. "The dynamics of outsourcing relationships in global value chains: Perspectives from MNEs and their suppliers," Journal of Business Research, Elsevier, vol. 103(C), pages 581-595.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:94:y:2020:i:c:s0264837719305344. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.