The Vietnamese real estate sector has attracted a total foreign direct investment (FDI) of USD701 million in the first half of this year, up 16% on-year.

The Vietnamese real estate sector has attracted a total foreign direct investment of USD701 million in the first half of this year

According to the Ministry of Planning and Investment, the property sector was the fifth most popular area for investment for FDI between January and June this year. 

The ministry reported that, of the sum, USD461.7 million came from the 39 newly-licensed real estate projects, while the rest from the capital rise of existing projects.

By June 20 this year, Vietnam licensed 618 property projects valued at USD50.99 billion, just behind the manufacturing sector.

In the first six months of 2017, up to 2,279 real estate companies were licensed, up 68.3% against the same period of last year. Their total registered capital also increased by 42.2% on-year.

Experts said that foreign investors have shown greater interest in Vietnam’s property projects as the sector was forecast to be transparent and open. Particularly, the government has further simplified administrative procedures and tightened policies on land planning.

Meanwhile, mergers and acquisitions in the local real estate market are forecasted to jump in 2017 as foreign investors look for local partners, accelerated urbanisation and an expanding middle-class population with higher incomes.

dtinews