Illustrative image (Photo: VNA)

HCM City (VNA) – Foreign direct investment (FDI) in the property market has been on the rise, with nearly 300 million USD in January, accounting for nearly 21 percent of total FDI in Vietnam.

Last year, the sector attracted about 1.3 billion USD, making up 10 percent of total FDI poured into the country. The Vietnam National Real Estate Association has predicted that the market will become busier.

Ho Chi Minh City lured the highest number of FDI projects in the real estate, with investment accounting for 40.9 percent of the country’s total.

Notably, a joint venture between Japan’s Maeda Group and Thien Duc company of Vietnam invested 30 million USD in Waterina Suites high-end apartment project in District 2.

Meanwhile, the Japanese Mitsubishi Group signed a contract with Bitexco to set up a housing development joint venture with an initial capital of about 290 million USD. Another giant from Japan, Kajima Group, has also teamed up with Indochina Capital to form a 1 billion USD joint venture in 10 years with four projects in Hanoi, Da Nang and Ho Chi Minh City.

At the same time, the number of newly-established real estate enterprises has also increased in both quality and quantity.

According to the Business Registration Management Agency, by the end of 2016, 110,000 new enterprises were set up, a rise of 16.2 percent over the previous year, a record figure so far.

Total capital committed to the market reached 891.09 trillion VND, or 8.09 billion VND per new firm, up 48.1 percent year on year. Meanwhile, 26,689 businesses resumed operation, up 43.1 percent.-VNA