Real estate in Vietnam attractive to FDI, foreigners

Real estate has emerged as the biggest recipient of foreign direct investment (FDI) in January while foreigners now also have great demand for property in Vietnam, statistics show.

Real estate in Vietnam attractive to FDI, foreigners -0
Real estate attracts the most FDI in January, 1.27 billion USD. (Photo: VNA)

As much as 1.27 billion USD of FDI was poured into real estate in January, accounting for 53.9% of the total registered capital and doubling the figure recorded in the same period last year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

With this result, real estate ranks first in FDI attraction after a long time standing at the second place, after the processing - manufacturing sector.

Notably, the FDI flow into Hanoi has continued surging thanks to a new residential area project worth over 662 million USD, the FIA reported.

Besides, there is also great demand for real estate in Vietnam among foreigners as shown in the Vietnam Institute of Real Estate Studies (VIRES)’s recent survey of 500 large investors from 10 associations of property businesses and investors in such developed real estate markets as the US, the Republic of Korea, and Singapore.

It found that the top reason for foreign investors’ interest in Vietnamese real estate is attractive prices.

However, VIRES held that the country still needs to further improve the legal framework and access to information and data to provide the best possible conditions for foreign investors in this sector.

About 10.5% of the interviewed investors assessed the property market and prices in Vietnam as very attractive, 47.4% said the market and prices are very attractive but improvement is needed in terms of legal, information and data conditions, 21.1% relatively attractive, and 15.8% moderately attractive. Only 5.3% said the market and prices are not truly attractive.

Among real estate segments, foreign investors are most attracted to middle- and hi-end apartments. About 57.9% of them said they are interested in buying while 36.8% want to rent those apartments.

Demand for purchasing and renting tourism and resort property is also relatively high, at 26.3% and 31.6%. Only about 5.3% of foreign investors have demand for renting and buying industrial park real estate and renting commercial offices, the survey found.

Economy

Da Nang strengthens cooperative ties with Thai localities
Economy

Da Nang strengthens cooperative ties with Thai localities

Vice Chairwoman of the People's Committee of the central city of Da Nang Nguyen Thi Anh Thi on September 26 hosted a Thai delegation led by Thai Consul General in Ho Chi Minh City Wiraka Moodhitaporn, and Khon Kaen Deputy Governor Siriwat Pinijpanich, who are in the city to attend the "Meet Thailand in Da Nang" conference.

UN Special Rapporteur highly values Vietnam's progress
Economy

UN Special Rapporteur highly values Vietnam's progress

United Nations (UN) Special Rapporteur on the right to development Surya Deva had a dialogue in Geneva on September 18 with countries on his activities over the past year, during which he highly valued the Vietnamese Government's multidimensional poverty reduction approach.

Australian plums to be available in Vietnam
Economy

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.

Vinamarine prohibits profiteering in emergency situations
Economy

Vinamarine prohibits profiteering in emergency situations

The Vietnam Maritime Administration (Vinamarine) under the Ministry of Transport strictly prohibits all acts of taking advantage of emergency situations, storms and floods to raise service prices inconsistent with fluctuations in total costs compared to normal conditions for profiteering.