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Property

9M FDI in real estate hits $1 billion

Released at: 09:06, 27/09/2016

9M FDI in real estate hits $1 billion

Photo: Viet Tuan

Sector second behind manufacturing and processing as FDI down year-on-year in first nine months.

by Ngoc Chi

The latest report from the Foreign Investment Agency (FIA) shows that real estate attracted $1 billion in FDI in the first nine months of this year, ranking it second behind manufacturing and processing.

There have been 1,820 newly-licensed projects so far this year with total capital of $11.02 billion, up 1.1 per cent year-on-year, while 851 projects registered to add a total of $5.3 billion in capital, down 13.9 per cent.

Total capital therefore stands at $16.4 billion for the first nine months, down 4.2 per cent year-on-year and against the trend in earlier months.

Foreign investors invested in 19 sectors. Manufacturing and processing led the way with 767 new projects and 608 projects adding capital. Total capital reached $12.15 billion, accounting for 73.9 per cent of all FDI.

Real estate was second, with 34 new projects and total new capital and added capital of $1 billion, accounting for 6.1 per cent of the total.

Sixty-five countries and territories poured investment capital in Vietnam. South Korea was at the top of the list with $5.58 billion, followed by Singapore with $1.84 billion and Japan with $1.7 billion.

Foreign investors invested in 54 cities and provinces. Northern Hai Phong city attracted the most, with 37 new projects and 28 adding capital to the tune of $2.74 billion, followed by Hanoi and southern Dong Nai province with $1.97 billion and $1.89 billion, respectively.

2016 has been spoken of as a promising year for Vietnam’s real estate market as it enters into a solid recovery phase following improved macro-economic conditions, Savills wrote in a March report. 

Almost all asset classes have rebounded, most notably the residential sector, due to revised monetary policy and expectations over foreign trade agreements Vietnam signed last year.

Mr. Matthew Powell, Director of Savills Hanoi, was optimistic. “We can see the momentum of 2015 being carried into 2016,” he said. “Residential developers are now more focused on design, landscape, and facilities while management services and higher quality projects provide more confidence to buyers.”

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