Hanoi (VNA) – Although the real estate sector hassuffered a fall in foreign direct investment (FDI) attraction, experts are stilloptimistic about its prospects, especially the industrial segment which is described as a bright spot.

According to the Foreign Investment Agency under theMinistry of Planning and Investment (MPI), Vietnam drew nearly 10.86 billionUSD of foreign direct investment (FDI) as of May 20.

Among the 18 sectors receiving FDI, manufacturing-processingattracted the highest amount at 6.64 billion USD, accounting for61.2% of the total. It was followed by finance-banking with 1.53 billion USD,making up 14.1% of the total.

Meanwhile, after a long time occupying the second position,the real estate sector dropped to the third position with 1.16billion USD, down 61.3% compared to the nearly 3 billion USD in the same periodlast year.

Experts attributed the situation to the existing problems ofVietnam’s real estate sectors such as a shortage in land reserve and supply,and obstacles in legal procedures.

In the context, industrial property has been a rare silver lining of the cloud with great development potential and opportunities in short, middle andlong terms.

In reality, Vietnam has been an attractive destination formanufacturers. The multiple-fold increase in FDI inflows from foreign groupsover the past decade has been a clear evidence, building strong confidenceamong international investors.

MPI Deputy Minister Tran Quoc Phuong said that in recentyears, FDI poured into industrial parks and economic zones has accounted forabout 35-40% of the total added FDI of the country.

The Vietnam Association of Realtors (VAR) held that the changesof the economy as well as the new demands from development are requiring clearand strong policy directions to support investors and boost the market developmentto match the potential.

VAR Chairman Nguyen Van Dinh underlined the need for openand transparent information of industrial park planning in regions andlocalities, enabling investors to seek opportunities.

He also pointed to the need for stronger investment ininfrastructure system, especially in transport.

Alongside, the simplification of procedures in businesslicencing and the settlement of obstacles in land-related procedures are also anurgent need, said Dinh.

Therefore, he held that despite the drop in FDI poured into thereal estate sector, there is a high hope for investment in the industry thanks toinvestors’ great interest in the Vietnamese market.

From a different point of view, an expert from Cushman &Wakefield (C&W) cited data showing that investment funds have just markedtheir presence in Vietnam in the recent five years. Previously, althoughregistered FDI inflows into real estate were quite high, the capital disbursed was low. Therefore, C&W commented that Vietnam is considered anopportunistic investment market, not an investment market through stable cashflow.

In the context that capital poured into real estate islimited from domestic bank credit, FDI inflows are becoming a timely and valuablesupport for project developers, creating many opportunities and values forbusinesses, experts asserted./.