Japan’s Nishi-Nippon Railroad, widely known as Nishitetsu, plans to develop 22,000 housing units in Vietnam by 2035 via a partnership with local developer Nam Long Investment Corporation (HoSE: NLG).
The railway operator last week said it has acquired a 49% stake in Nam Long ADC, a subsidiary focused on low- and middle-income residential projects. As part of the deal, Nishitetsu will dispatch executives to participate in management.
The move comes as the Japanese firm seeks to expand its residential development footprint in Southeast Asia, betting on sustained population growth and rising incomes across the region.
Executives of Nam Long and Nishi-Nippon Railroad sign a strategic partnership deal on April 24, 2026. Photo courtesy of NLG.
The two companies have previously collaborated on housing projects in the outskirts of Ho Chi Minh City. Under the expanded partnership, they plan to broaden development into suburban areas of Hanoi and Danang city – an economic hub in central Vietnam.
The focus will remain on affordable housing segments, with indicative pricing around VND1.2 billion ($45,600) for a condominium unit and roughly VND2.5 billion ($94,990) for a detached home.
“We have worked with Nam Long Group on a project-by-project basis,” said Taro Koyama. “We will collaborate more closely going forward.”
Nam Long ADC chairman Chu Chee Kwang highlighted robust demand for affordable housing, estimating Vietnam needs about 100,000 new housing units annually.
The partnership reflects a broader trend of foreign developers targeting Vietnam’s mid-income segment, where supply remains constrained despite rapid urbanization.
Nishitetsu entered overseas real estate development in 2015 and has since expanded into markets including the Philippines and Indonesia. In 2025, the company also participated in a rental office project in India, underscoring its push to diversify beyond its domestic rail and property businesses.
According to the Ministry of Construction, new affordable housing supply reached only four projects totalling nearly 580 units in the first quarter of 2026.