Illustrative Image (Source: VNA) HCM City (VNA) – The Prime Minister’s approval of a proposal on Vietnam’s smart citydevelopment to 2025 with a vision to 2030 will strongly affect the market andform a smart property trend, held experts at a conference in Ho Chi Minh Cityon August 11.
President of theVietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said that recently,foreign investors have made strong investment in domestic real estate marketdue to their strength in capital, technology and management capacity.
However, he held thatdomestic firms have advantages in understanding the local law and culture,suggesting that foreign and domestic businesses should cooperate for mutualdevelopment.
Smart real estate isnot a playground for short-term business, he stressed.
Representatives fromthe Housing and Property Market Management Agency under the Ministry ofConstruction asserted that smart city is a development trend of the real estatemarket in the future with the formation of online trading floors as well as theapplication of automation inside apartments.
Ngo Dong Hai, deputyhead of the Party Central Committee’s Economic Commission said that in the riseof the fourth industrial revolution, the majority of Vietnam’s smart cities areyoung urban areas in scale and development level.
Hai said that the demandof people has become increasingly diverse, thus businesses should thoroughlygrasp their needs.
He highlighted theneed for combination of FDI firms’ strength in capital, technology andmanagement capacity with the law and culture understanding of domesticenterprises in the formation and development of smart urban areas, houses andresidential areas as well as the solving of traffic, energy and environmentproblems.
Nguyen Hoang Minh,Vice Director of the State Bank of Vietnam’s Ho Chi Minh City branch noted thatby the end of July this year, the banking sector has lent 208 trillion VND to thereal estate sector.
In the recent fiveyears, real estate credit expanded 11.5 percent each year, he said, adding thatremittance and FDI poured to the sector have also reduced pressures for banks.
In the recent threeyears, foreign remittance sent to Ho Chi Minh City was 5-5.5 billion USD eachyear, of which, 21 percent was invested in real estate.
Phan Truong Son, headof the Housing and Property Market Office of Ho Chi Minh City revealed that inthe next 10-15 years, the city will focus on developing smart urban areas andgreen architecture adaptable to climate change, while the social housing andapartment buildings will continue to be expanded.-VNA
VNA
