Investment represented nearly 20% of all FDI from January to July.
In the first seven months of the year foreign direct investment (FDI) into real estate stood at $1.69 billion, or 19.3 per cent of all FDI, according to the Foreign Investment Agency (FIA).
Real estate ranked second in terms of sectors attracting FDI, behind industry and manufacturing.
In the first seven months there were 15 new projects in the real estate sector and seven existing projects with additional capital.
In Ho Chi Minh City most FDI went to the real estate sector in the first seven months, with four projects and $1.31 billion, according to a recent report from Ho Chi Minh City General Statistics Office.
According to insiders, FDI in the real estate sector in the remaining months of the year may increase further as the market is seeing a positive impact from the new Law on Housing and the Law on Real Estate Business, which came into effect on July 1. The new laws’ impact is expected to be significant and will mark an important step towards opening up Vietnam’s real estate market to overseas investment.
There have been a number of foreign investors pouring large amounts of capital into the domestic property market recently. Among others, Japan’s Creed Group, who specializes in principal investment and property development, signed a strategic cooperation agreement on July 26 with An Gia Investment and committed to invest $200 million in the Vietnamese partner. Previously, the US investment fund Global Emerging Markets (GEM) announced a $20 million investment in the Hoang Quan Group, to develop social housing projects in Vietnam.