Along with a remarkable rebound, the country’s real estate sector continues to enjoy foreign direct investment (FDI) flows.
Accordingto report from the Foreign Investment Agency under the Ministry ofPlanning and Investment, the sector has attracted 461.5 million USD inthe first five months of 2015.
Data from Ho Chi Minh City’s Department of Statistics reported that as of May 15, the city’scapital construction investment reached nearly 40 trillion VND (1.9billion USD); of 11,000 newly established firms, 2,600 work inconstruction and real estate.
The southern hub’s People’sCommittee revealed that from 2011 to 2015, the city had 5,331 FDIprojects with total investment capital of 36.65 billion USD, of whichthe real estate sector accounted for 12.3 billion USD (36.7 percent).
SuNgoc Khuong, Director for investment of Savills Vietnam , said the FDIflow has created a driving force for growth in other markets such asretail, hospitality and tourism while the country’s real estate sectoris receiving the attention of potential foreign investors from theRepublic of Korea , Japan , Singapore and Indonesia .
Withthe revised Land of Housing, which will officially go into effect onJuly 1, 2015, not only overseas Vietnamese but foreigners also will havechance to own permanent property in the country, he added.
Meanwhile,General Director of Cushmand & Wakefield Vietnam Timothy Hortonsaid the strong FDI inflows into real estate may pose the risk thatforeign investors will dominate the market. He added that domesticenterprises in the sector should quickly reform themselves and joinhands in order to compete against foreign rivals.
DeputyDirector of Him Lam Real Estate Joint Stock Company Ngo Quang Phuc saidFDI flows into the sector will increase supply, offering consumers morechoices when purchasing property.
The participation of foreigninvestors will increase project competitiveness and transparency, whichwill minimize the “bubble” pricing phenomenon in the real estate marketin recent years.-VNA
Accordingto report from the Foreign Investment Agency under the Ministry ofPlanning and Investment, the sector has attracted 461.5 million USD inthe first five months of 2015.
Data from Ho Chi Minh City’s Department of Statistics reported that as of May 15, the city’scapital construction investment reached nearly 40 trillion VND (1.9billion USD); of 11,000 newly established firms, 2,600 work inconstruction and real estate.
The southern hub’s People’sCommittee revealed that from 2011 to 2015, the city had 5,331 FDIprojects with total investment capital of 36.65 billion USD, of whichthe real estate sector accounted for 12.3 billion USD (36.7 percent).
SuNgoc Khuong, Director for investment of Savills Vietnam , said the FDIflow has created a driving force for growth in other markets such asretail, hospitality and tourism while the country’s real estate sectoris receiving the attention of potential foreign investors from theRepublic of Korea , Japan , Singapore and Indonesia .
Withthe revised Land of Housing, which will officially go into effect onJuly 1, 2015, not only overseas Vietnamese but foreigners also will havechance to own permanent property in the country, he added.
Meanwhile,General Director of Cushmand & Wakefield Vietnam Timothy Hortonsaid the strong FDI inflows into real estate may pose the risk thatforeign investors will dominate the market. He added that domesticenterprises in the sector should quickly reform themselves and joinhands in order to compete against foreign rivals.
DeputyDirector of Him Lam Real Estate Joint Stock Company Ngo Quang Phuc saidFDI flows into the sector will increase supply, offering consumers morechoices when purchasing property.
The participation of foreigninvestors will increase project competitiveness and transparency, whichwill minimize the “bubble” pricing phenomenon in the real estate marketin recent years.-VNA
