Illustrative photo (Source: VNA) Hanoi (VNA) – The real estatesector saw 840 new enterprises established in the first two months of this year,5.3 percent of the country’s total new firms during the period.
Economic growth coupled with high demand forproperty products has drawn capital into the Vietnamese real estate market.
Matthew Powell, director of property companySavills Hanoi, said the market is on foreign investors’ radar.
He added that many of Savills Hanoi’scustomers, particularly those from Japan, the Republic of Korea (RoK), China,Hong Kong and Singapore, have sought information on investment in Vietnam.
He anticipated the market would record morenew transactions this year.
In 2018, foreign direct investment (FDI)poured into property projects exceeded 6.5 billion USD, 21.3 percent of the totalFDI. The figure pushed real estate to the second place in the ranking ofbiggest FDI earners in Vietnam. Most of the capital came from Japan, followedby the RoK, Singapore and Hong Kong.
According to insiders, while foreigncompanies enter the market by buying projects that have already operated forquick profits, domestic firms focus on merger and acquisition deals to developmore projects serving housing, production and investment demand.
The thriving sector has also attractedseveral companies from other sectors. This has led to a high number ofregistered projects but a low construction completion rate due to weakfinancial and management capacity of contractors. Other problems include fraudand soaring land prices.-VNA
VNA
