Phu My Hung urban area in District 7 of Ho Chi Minh City. (Photo: VNA) Hanoi (VNA) – Real estate attracted 1.94 billion USD in foreign direct investment (FDI) in the first nine months of this year, accounting for about 9.6% of total FDI to Vietnam in the period.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam attracted nearly 20.21 billion USD in foreign direct investment (FDI) from the beginning of this year to September 20, up 7.7% year-on-year,
The manufacturing and processing sector continued leading in FDI attraction, with over 14 billion USD, down 5.9% year-on-year. It was followed by real estate with close to 1.94 billion USD, down 45%, and finance and banking with 1.54 billion USD, a 63.8-fold rise compared to that of the same period last year.
According to experts, amid market difficulties, it was a positive sign as FDI in real estate still accounted for more 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 is making great efforts to improve infrastructure by completing inter-provincial national highways and building and upgrading international airports and deep-water seaports. The development of infrastructure accompanied by many preferential investment policies and reforms of administrative procedures has created investment attraction for the market.
He said investors are interested in the green real estate segment in Vietnam, especially when commitments to environment, society, and governance and green factors in real estate have become an important requirement.
Dr. Dinh Trong Thinh said that now, the real estate market has some motivations to recover. Firstly, the Government has taken drastic measures to solve difficulties in the real estate market including mechanisms, policies, administrative procedures, and access to capital.
Secondly, the real estate market’s restructuring is continued in each segment. Investors are considering focusing resources on feasible projects so 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 the period 2021 - 2030 will help speed up the process of restructuring the market, innovating operations, and enhancing market capacity./.
