FDI inflow promises bright prospect for property sector

19/03/2019, 10:57

The flow of foreign direct investment (FDI) into property in the first months of 2019 promises to bring many new opportunities for the real estate market.

The D’Capitale apartment blocks on Tran Duy Hung street in Hanoi

(Photo: VNA)

In January and February, foreign investors poured money into 18 fields, with processing and manufacturing attracting 6.93 billion USD, or 81.8 percent of total registered capital. Property ranked second with 478 million USD, 5.6 percent of the total.

The Ho Chi Minh City Real Estate Association said in recent years, property has been among the top magnets for FDI, which has become a very important source of funding as capital flow from domestic banks has slowed in recent years.

Chairman of the association Le Hoang Chau said FDI is not only an additional source of funding for the real estate market, it also creates many opportunities and value for property firms.

Economist Nguyen Tri Hieu said over the last three years, FDI inflow into Vietnamese real estate has been increasing. Investors from Singapore, Japan and the Republic of Korea have paid attention to downtown areas of big cities or areas near important transport facilities like metros or elevated railways.

Several bottlenecks in terms of legal procedures have been removed, boosting the market’s investment attraction. Additionally, many businesses have reformed to be listed on the stock market and partner with foreign investment funds to carry out projects.

Insiders said foreign investors in Vietnam’s property market can be divided into two groups. The first one is interested in money-making real estate like office buildings, shopping malls, serviced apartments and hotels in downtown areas, while the second focuses on housing.

Jones Lang LaSalle (JLL) Vietnam said there is an FDI wave worth hundreds of millions of USD ready to flow into the country’s property sector.

The real estate services firm said the country welcomed 15.5 million foreign visitors in 2018 and targets the number at 20 million in 2020. Additionally, Vietnam is also stepping up infrastructure development, including 2,000km of new expressways, metro systems in Hanoi and HCM City and airports.

Therefore, it is not a surprising thing investors and property developers are ready to pour money into this fast-growing market, JLL noted.

Experts expect the local property sector will continue recording growth in almost all segments, with industrial real estate the hottest in 2019, driven by the relocation of factories from China and the positive impacts of trade agreements.

Source: VNA


Related articles

(0) Comments
Focus
Rural tourism is on the rise
BTO- Last Saturday, I went to Cam Binh Beach (Tan Phuoc commune, La Gi town) at the Anh Chau couple's invitation. This is not the first time I have been to La Gi or Cam Binh Beach, but it has been more than 5 years since I had the chance to return, partly due to COVID-19 and not having any related work. Cam Binh Beach is now very different from previous years because of the scene of bustling tourism.
Do not miss
  • Rural tourism is on the rise
    17 minute ago LANDSCAPES
    BTO- Last Saturday, I went to Cam Binh Beach (Tan Phuoc commune, La Gi town) at the Anh Chau couple's invitation. This is not the first time I have been to La Gi or Cam Binh Beach, but it has been more than 5 years since I had the chance...
  • Binh Thuan welcomes nearly 8 mln tourist arrivals
    20 minute ago Travel
    BTO - In October, Binh Thuan tourist destination has welcomed over 800,000 visitors, an increase of 2.89% compared to the previous month and nearly 15% compared to the same period in 2023. Specifically, there were about 25,900 international...
  • ‏"El Pulga" was not on the list‏
    14 yesterday Sports
    ‏90% of football players at this age have to retire due to the rule of time; however, ‏‏ ‏‏Lionel Messi still surprises the soccer world with his super performances. But somehow, "El Pulga" was not included on the 2024 Ballon d'Or nominees...
  • The "Big Four" era has passed
    15 yesterday Sports
    BTO - After Carlos Alcaraz beat Jannik Sinner in the China Open final, two ATP 500 records from 2009 were reset. This breathtaking competition between two young players makes the "Big Four" become a past.
  • Farewell “Rafa”
    15 yesterday Sports
    BTO- Recently, Rafael Nadal officially announced his upcoming retirement after his final match at the Davis Cup in Malaga this November. Rafael's announcement left sorrows for tennis fans since the world will officially no longer witness...
  • Binh Thuan Rice: Towards the Gia An Rice Brand
    15 yesterday Business
    BTO - With proactive efforts in seeking new high-yield rice varieties and pioneering the application of scientific and technical advancements in production, the Gia An Agricultural Service Cooperative, located in Gia An commune, Tan...
  • Convergence of Binh Thuan Specialties at the Southern Region Exhibition
    20 yesterday Business
    BTO - From October 10 to 16, the 2024 Southern Region Exhibition of Typical Rural Industrial Products takes place in Phu Quoc City. The event is organized by the Local Industry Department (Ministry of Industry and Trade) in collaboration...
  • Binh Thuan heads towards digitalization for Tourism Development
    20 yesterday Travel
    BTO - Although Binh Thuan possesses the features to develop tourism, in the new context, these are not enough. Hence, Binh Thuan has been gradually implementing digital transformation in the province's "green economy" sector intending...
  • Nole's “nemesis”
    20 yesterday Sports
    BTO - The Shanghai Masters 2024 final ended with the victory of the current world No. 1. This is Sinner's second victory over Djokovic in 2024. Sinner also defeated his senior in the Australian Open semifinals this year. Although Djokovic...
  • Binh Thuan Agriculture to embrace Digital Transformation and Green Transition
    21 yesterday Business
    BTO - Currently, agricultural production in Vietnam, particularly in Binh Thuan, is facing direct challenges from extreme climate impacts. Therefore, it is imperative that we take action to reduce greenhouse gas emissions in alignment...
  • Toothless Lions
    23 yesterday Sports
    For the past ten years, theEnglandteam could not be completed without the name Harry Kane on the squad. Harry's presence guarantees a positive result for the "Three Lions" in every match; therefore, one day the "Three Lions" will be...
  • Stumbling the champions
    26 yesterday Sports
    Lionel Messi could be on the pitch (since winning the Copa America 2024) in the match against Venezuela in the 2026 World Cup qualifiers in South America, which will occur at 04:00 on October 11. However, with the home advantage, Venezuela...
  • Phan Thiet Smart City Operation Center (IOC): The “Digital Brain” of a Smart City
    26 yesterday Society
    BTO - In the journey towards establishing a smart city, the operation of the Smart City Operation Center (IOC) in Phan Thiet is regarded as a significant milestone. The IOC is likened to the “digital brain” of the city, capable of integrating...
  • Unstoppable "Nole"
    26 yesterday Sports
    Young talented Italian, Flavio Cobolli faced Novak Djokovic in the third round of the 2024 Shanghai Mastersfull of youth energy, hoping to pass a long-standing statue of thetennis field. Still, everything was just "fantasy" for the...
  • A legendary retirement in football
    27 yesterday Sports
    In 2024, world football witnessed many farewells. They were Tony Kross of Germany, Pepe of Portugal, Di Maria of Argentina, Griezmann of France...; and this time, a Spanish player - Andres Iniesta. He officially announced his retirement...
  • Djokovic “Age is just a number”
    29 yesterday Sports
    On October 5, the Shanghai Masters witnessed the top 4 seeds Sinner, Zverev, Alcaraz and Djokovic all play. The match between Djokovic and Michelsen was extremely tense with two tie-breaks. However, Michelsen’s youth still could not...
  • Suspect for Snatching a Foreign Tourist’s Handbag promptly arrested
    one month ago NEWS
    BTO - On October 4, the Investigation Police Agency of Phan Thiet City issued a decision to temporarily detain the suspect V.T.T (born in 1997, residing in Luong Son Town, Bac Binh District) to investigate the act of “robbery and theft.”
  • The “Phoenix” has returned
    one month ago Sports
    In 2023, Quang Hai - the "brightest" star of Vietnamese football returned after an unsuccessful period playing for a French team, Pau FC. Just 1 year later, another star returned to Vietnam with a less than enthusiastic vibe after more...
  • Recognize Golden Linga  as a national treasure and celebrate Kate Festival 2024
    one month ago Culture
    BTO- On October 2 morning, at the Po Sah Inư Tower relic, Phan Thiet City, the ceremony to announce Binh Thuan Golden Linga as a national treasure following the Prime Minister's decision and celebrate the Kate Festival 2024.
  • Binh Thuan had a good effect on international friends
    one month ago Sports
    After five days of competition, the 76th World Individual Carom 3-Cushion Billiards Championship ended with a dramatic and fascinating final match between the two players Cho Myung-Woo (5th world rankings) and Tran Thanh Luc (21st world...
POWERED BY ONECMS - A PRODUCT OF NEKO
FDI inflow promises bright prospect for property sector