Rising FDI to real estate to continue given legal changes.
Vietnam’s property market attracted $1.82 billion in FDI to 18 new projects and seven existing projects that raised their registered capital in the first eight months of the year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI).
The figure accounts for 13.7 per cent of the total FDI of $7.87 billion in the period, putting real estate in second place in terms of attraction.
In the first eight months only two FDI projects in the country had total investment of more than $1 billion, with Samsung Display leading the way by increasing its total investment to $3 billion. The second project was a real estate project in Ho Chi Minh City by a joint venture between Tien Phuoc Real Estate JSC and the Tran Thai Real Estate Co. from Vietnam and the UK’s Denver Power Ltd.
Experts forecast that FDI going to the property sector would surge by year’s-end thanks to the amended Law on Housing and Law on Real Estate Trading, which allow foreigners and overseas Vietnamese to own houses in Vietnam with 50-year leaseholds.