A view of the Vietnam-Singapore Industrial Park (VSIP) Bac Ninh (Photo: VNA) According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), Vietnam drew nearly 10.86 billion USD of foreign direct investment (FDI) as of May 20.
Among the 18 sectors receiving FDI, manufacturing-processing attracted the highest amount at 6.64 billion USD, accounting for 61.2% of the total. It was followed by finance-banking with 1.53 billion USD, making up 14.1% of the total.
Meanwhile, after a long time occupying the second position, the real estate sector dropped to the third position with 1.16 billion USD, down 61.3% compared to the nearly 3 billion USD in the same period last year.
Experts attributed the situation to the existing problems of Vietnam’s real estate sectors such as a shortage in land reserve and supply, and obstacles in legal procedures.
In the context, industrial property has been a rare silver lining of the cloud with great development potential and opportunities in short, middle and long terms.
In reality, Vietnam has been an attractive destination for manufacturers. The multiple-fold increase in FDI inflows from foreign groups over the past decade has been a clear evidence, building strong confidence among international investors.
MPI Deputy Minister Tran Quoc Phuong said that in recent years, FDI poured into industrial parks and economic zones has accounted for about 35-40% of the total added FDI of the country.
The Vietnam Association of Realtors (VAR) held that the changes of the economy as well as the new demands from development are requiring clear and strong policy directions to support investors and boost the market development to match the potential.
VAR Chairman Nguyen Van Dinh underlined the need for open and transparent information of industrial park planning in regions and localities, enabling investors to seek opportunities.
He also pointed to the need for stronger investment in infrastructure system, especially in transport.
Alongside, the simplification of procedures in business licencing and the settlement of obstacles in land-related procedures are also an urgent need, said Dinh.
Neil MacGregor, Managing Director of Savills Vietnam, said that macro signs have still shown the attractiveness of the Vietnamese market despite fluctuations in the world economy. Investors from many major markets in the world have made clear their interest in the Vietnamese market in many areas, especially production, retail, logistics, office and housing, he said.
Therefore, he held that despite the drop in FDI poured into the real estate sector, there is a high hope for investment in the industry thanks to investors’ great interest in the Vietnamese market.
From a different point of view, an expert from Cushman & Wakefield (C&W) cited data showing that investment funds have just marked their presence in Vietnam in the recent five years. Previously, although registered FDI inflows into real estate were quite high, the capital disbursed was low. Therefore, C&W commented that Vietnam is considered an opportunistic investment market, not an investment market through stable cash flow.
In the context that capital poured into real estate is limited from domestic bank credit, FDI inflows are becoming a timely and valuable support for project developers, creating many opportunities and values for businesses, experts asserted./.
VNA
