FDI hoped to help realty market develop sustainably in long term
Vietnam’s real estate sector last year attracted an additional 1.85 billion USD in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of 4.45 billion USD, accounting for 16.1% of the total FDI poured into the country, according to the Ministry of Construction.
The Ministry of Construction said the FDI inflows in the real estate sector mainly focused on industrial real estate and some big projects.
In the difficult context of the market, FDI is a reliable source of capital for domestic real estate enterprises, helping to promote the sustainable growth of the market in the long term.
Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that the Vietnamese realty market remains attractive to investors despite fluctuations of the world economy.
With a large working-age population and many attractive policies, Vietnam is still attractive, he said, adding that the country has a property market with positive growth, suitable for doing business and investing for a long time thanks to low risks and an inflation rate that is kept at a safe level.
According to the General Statistics Office, from the beginning of this year to January 20, 2023, the total registered FDI capital in Vietnam reached 1.69 billion USD.
The sectors related to wholesale, retail, and repair of automobiles, motorcycles, motorbikes, and motor vehicles attracted most of the sum with 651.9 million USD, accounting for 54.1% of the total newly registered capital.
It was followed by the processing and manufacturing industry which attracted 351.2 million USD, accounting for 29.1%.
The real estate sector lost its second position in FDI attraction in the first month of this year.
However, experts explained that the first month of this year coincided with the long Lunar New Year (Tet) Festival and it was just a "warm-up" time for the real market.
So, the FDI inflows into the real estate sector is expected to increase in the following months./. VNA