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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
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