Business

FDI hoped to help realty market develop sustainably in long term

Vietnam’s real estate sector last year attracted an additional 1.85 billion USD in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of 4.45 billion USD, accounting for 16.1% of the total FDI poured into the country, according to the Ministry of Construction.
FDI hoped to help realty market develop sustainably in long term ảnh 1The real estate sector was at second position in FDI attraction in Vietnam last year. (Photo: baodautu.vn)

Hanoi (VNA) – Vietnam’s real estate sector last year attracted anadditional 1.85 billion USD in foreign direct investment (FDI), retaining itssecond place among industries drawing FDI with combined investment of 4.45billion USD, accounting for 16.1% of the total FDI poured into the country,according to the Ministry of Construction.

TheMinistry of Construction said the FDI inflows in the real estate sector mainlyfocused on industrial real estate and some big projects. 

In thedifficult context of the market, FDI is a reliable source of capital fordomestic real estate enterprises, helping to promote the sustainable growth ofthe market in the long term.

TroyGriffiths, Deputy Managing Director of Savills Vietnam, said that theVietnamese realty market remains attractive to investors despite fluctuationsof the world economy.

With alarge working-age population and many attractive policies, Vietnam is stillattractive, he said, adding that the country has a property market withpositive growth, suitable for doing business and investing for a long timethanks to low risks and an inflation rate that is kept at a safe level.

FDI hoped to help realty market develop sustainably in long term ảnh 2Phu My Hung Urban Area in Ho Chi Minh City. (Photo: VNA)

Accordingto the General Statistics Office, from the beginning of this year to January20, 2023, the total registered FDI capital in Vietnam reached 1.69 billion USD.

Thesectors related to wholesale, retail, and repair of automobiles, motorcycles,motorbikes, and motor vehicles attracted most of the sum with 651.9 millionUSD, accounting for 54.1% of the total newly registered capital. 

It wasfollowed by the processing and manufacturing industry which attracted 351.2million USD, accounting for 29.1%.

Thereal estate sector lost its second position in FDI attraction in the firstmonth of this year.

However,experts explained that the first month of this year coincided with the longLunar New Year (Tet) Festival and it was just a "warm-up" time forthe real market.

So,the FDI inflows into the real estate sector is expected to increase in thefollowing months./.

VNA
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