Phu My Hung urban area in District 7 of Ho Chi Minh City. (Photo: VNA) Hanoi (VNA) – Real estate attracted 1.94 billion USDin foreign direct investment (FDI) in the first nine months of this year, accounting forabout 9.6% of total FDI to Vietnam in the period.
According to the Foreign Investment Agency under the Ministry ofPlanning and Investment, Vietnam attracted nearly 20.21 billion USD in foreigndirect investment (FDI) from the beginning of this year to September 20, up7.7% year-on-year,
The manufacturing and processing sector continued leading in FDIattraction, with over 14 billion USD, down 5.9% year-on-year. It was followed by realestate with close to 1.94 billion USD, down 45%, and finance and banking with1.54 billion USD, a 63.8-fold rise compared to that of the same period lastyear.
According to experts, amid marketdifficulties, it was a positive sign as FDI in real estate still accounted formore than 9.6% of total registered investment capital. From June 2023 to now,real estate has regained the 2nd position in FDI attraction.
Matthew Powell, Director of Savills Hanoi, said Vietnam ismaking great efforts to improve infrastructure by completinginter-provincial national highways and building and upgrading internationalairports and deep-water seaports. The development of infrastructure accompaniedby many preferential investment policies and reforms of administrativeprocedures has created investment attraction for the market.
He said investors are interested in the green real estate segment inVietnam, especially when commitments to environment, society, and governanceand green factors in real estate have become an important requirement.
Dr. Dinh Trong Thinh said that now, the realestate market has some motivations to recover. Firstly, the Government has taken drastic measures to solve difficulties in the real estate marketincluding mechanisms, policies, administrative procedures, and access tocapital.
Secondly, the real estate market’s restructuring is continued ineach segment. Investors are considering focusing resources on feasible projectsso that they can have products offered to the market and get a quick return on investment capital.
In addition, the Government’s project to build at least 1 million social housing apartments for low-income earners and workers in theperiod 2021 - 2030 will help speed up the process of restructuring the market,innovating operations, and enhancing market capacity./.
