Updated at Friday, 17 Mar 2017, 17:48
Foreign direct investment (FDI) flows into Vietnam’s real estate sector hit 345.5 million USD in February, making up over 10 percent in total FDI poured into the country, increasing by 12 times year-on-year.
A project invested by the Vietnam Singapore IP Joint Venture Co., Ltd which covers 1,000 ha in the southern province of Binh Duong, was the biggest among the 11 FDI property projects in Vietnam in February.
Vietnam has attracted considerable FDI in IP infrastructure development and logistics from late 2016 thank to improved economic growth. The country is considered as one of the most promising markets in Asia Pacific.
As of December 31, 2016, Vietnam was home to 324 IPs, with 220 operational.
Vietnam’s property market will be able to witness recoveries in the year thanks to the increase in demand for apartment, office leasing space, hotel, and IP.
Real estate ranked first among sectors in FDI attraction during the period, with most projects developing industrial park infrastructure.
FDI in the property market has been increasing with nearly 300 million USD in January, accounting for nearly 21 percent of total FDI in Vietnam.
The real estate sector attracted about 1.3 billion USD, accounting for 10 percent of total FDI poured into the country. The Vietnam National Real Estate Association has predicted that the market will become busier.
HCM City drew the highest number of FDI projects in the real estate, with investment accounting for 40.9 percent of the country’s total.
Particularly, a joint venture between Japan’s Maeda Group and Thien Duc company of Vietnam invested 30 million USD in Waterina Suites high-end apartment project in District 2.
Meanwhile, the Japanese Mitsubishi Group signed a contract with Bitexco to establich a housing development joint venture with an initial capital of about 290 million USD.
Another giant from Japan, Kajima Group, has also teamed up with Indochina Capital to form a 1 billion USD joint venture in 10 years with four projects in Hanoi, Da Nang and HCM City.
In addition, the number of newly-established real estate companies has also increased in both quality and quantity.
According to the Business Registration Management Agency, by the end of the previous year, 110,000 new enterprises were set up, a rise of over 16 percent over the same period of 2016, a record figure so far.
Total capital committed to the market reached 891.09 trillion VND, or 8.09 billion VND per new firm, up 48.1 percent year on year. Meanwhile, 26,689 businesses resumed operation, up 43.1 percent.
(Source: The Hanoitimes)