FDI into real estate sector on the sharp rise
  • | | March 13, 2018 06:44 PM

Foreign direct investment (FDI) into Vietnam’s real estate sector has continued rising, showing positive signs for the sector.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, in the first two months of this year, Vietnam attracted USD312 million investment in the real estate sector, accounting for 9.3% of the country’s total registered FDI during the period.


In the first two months of this year, Vietnam attracted USD312 million investment in the real estate sector

With the figure, real estate stood third among sectors which lured FDI the most between January and February this year.

By the end of 2017, Vietnam attracted a total USD53.1 billion FDI in the property sector, making up 16.7% of the country’s total FDI.

Japan has become the biggest foreign investor in Vietnam’s real estate sector with the participation of its big names such as Mitsubishi, Maeda, Kajima, Sumitomo, Sanyo and the Creed Group.

According to experts, the increased FDI flow shows improvements in the country’s real estate sector since the local government allowed foreigners to own houses in Vietnam. Hotels and luxury property is among the most attractive to foreign investors.

It is expected that a bigger FDI would be invested into Vietnam’s real estate projects in the coming time thanks to more open policies and the country’s tourism potentials.

Nguyen Hoang, R&D director of DKRA Vietnam, said that the real estate market has mostly attracted FDI through M&A activities.

Dr Su Ngoc Khuong, investment director of Savills Vietnam, said “FDI in real estate will help enterprises reduce their dependence on banks.”

Le Hoang Chau, chairman of HCM City Real Estate Association, said that FDI is an important investment channel into the real estate sector; however careful consideration should be given whether to go down that route.

It is more important to see how much of the registered FDI capital could be disbursed, Chau noted, adding that in reality, many investors pledged huge projects which, however, have remained on paper for years.

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