Sector follows only industry and manufacturing with more than 10% of total.
In the first five months of the year foreign direct investment (FDI) into real estate stood at $461.5 million, or 10.7 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.
“We have continued to see a more stable increase in FDI, of around 7.1 per cent year-over-year in Quarter 1, 2015, which is a great achievement,” said Mr. Timothy Horton, General Manager of Cushman & Wakefield in Vietnam.
There were some notable projects with major investment belonging to foreign developers in the early months of the year, including the $102.3 million Hilton Hotel in Hai Phong, the $50 million Oriental Sea Villas and Hotel project in Da Nang, and the $1.6 billion Amata City Ha Long Industrial Estate in Quang Ninh, among others.
However, Mr. Horton added that he is always skeptical of registered FDI in times when there is positive sentiment in the market. “I prefer to rely more firmly on disbursed FDI, which is a true reflection of the capital going to work,” he told VET.
Growth will continue to be stable throughout the balance of the year, on the back of a strong manufacturing sector. “There is a great deal of positive sentiment in the real estate market again, which I hope is sustainably nurtured throughout the country rather than creating a potential bubble like we saw in 2009,” Mr. Horton said.