return icon

FDI to Vietnam’s real estate rises by over 70% in 2022

Vietnam's real estate market continues to show strong appeal to foreign investors despite global economic difficulties.

The foreign direct investment (FDI) into Vietnam’s real estate market in 2022 rose by over 70% yearly to US$4.45 billion, focusing on industrial and large-scale commercial projects, according to the Ministry of Construction (MoC).

Real estate projects in Hanoi. File photo

The MIC’s report suggested that real estate stands second among sectors with the highest FDI attraction in 2022, which showcases “the strong appeal of the market to foreign investors amid a difficult global economic environment.”

Neil MacGregor, Managing Director of Savills Vietnam, echoed this view by saying foreign investors remain attracted to Vietnam, especially in production, retail, logistics, and real estate.

He expected the attention from foreign investors would help the local real estate accelerate the recovery process this year.

Regarding this sentiment, HSBC in its latest report said Vietnam remains an attractive destination in ASEAN for foreign investors. It referred to the fact that traditional tech giants such as Samsung and LG have announced expansion plans, with an investment worth $2 billion from the former and $4 billion from the latter, to deepen supply chains in Vietnam.

Meanwhile, it has also been reported that Apple will start making MacBooks in Vietnam by mid-2023 with an investment of more than $300 million. The move followed its supplier Foxconn's decision to lease 50.5 hectares of land in Bac Giang last August with an investment of more than $300 million.

Data from the Foreign Investment Agency, under the Ministry of Planning and Investment, revealed that, as of December 20, the total number of valid foreign investment projects in the sector was 1,072, for a combined value of US$ 66.3 billion, representing 15.1% of the total FDI commitments accumulated in the country.

Last year, major real estate projects in the country were the $500-million smart city project in Binh Duong financed by CapitaLand (Singapore) and local infrastructure development Becamex.

Another property developer from Singapore, Keppel Land, signed in 2022 an agreement to acquire a 40% stake worth $119 million in three land plots in Hoai Duc District, Hanoi from Phu Long Real Estate Company. The Singapore-based firm aims to invest in an apartment building project with nearly 1,020 units.

In August 2022, property developer Novaland announced a loan agreement of $100 million from Singapore’s investment fund Credit Opportunities III Pte, along with another investment of $250 million from the Warburg Pincus-led consortium.

"With Southeast Asia among the most attractive region for foreign investors, Vietnam, along with Singapore and Malaysia, whose manufacturing sector is a key growth pillar, is taking the lion’s share in the region," stated HSBC.

Hanoi plans to attract $30-40 billion worth of FDI and disburse 70% of them in 2021-2025. The city is accelerating the construction of new industrial parks and clusters to fulfill the plan of building two to five industrial parks during the period, said Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen.


Source: Hanoi Times


Vietnam needs to learn lessons in developing renewable energy

Dr Le Hai Hung says renewable power plants occupy much land, but environmental concerns remain controversial, and in the next 10 years, it will not be a reliable energy source for business production and people’s daily life.

High-end real estate developers advised to develop social housing

Realtors who specialize in high-end real estate projects should think of adding social housing projects to their business strategies, because the projects ensure sustainability and stability for them.

No time to waste in building the offshore wind industry

Action on accelerating offshore wind power projects is urgently needed if the government is to meet its targets for the decade.

Traditional markets in HCM City deserted, degraded

Many of the traditional markets in Ho Chi Minh City are dilapidated due to a lack of investment in upgrades and are facing the issue of small traders withdrawing due to low customer footfall.

Vietnam targets end of malaria by 2030

Vietnam will provide training to medical staff and apply new techniques in the prevention, detection, and treatment of malaria.

Vietnam auto makers project bumpy years ahead

Car manufacturers are calling for the reinstatement of measures used during the pandemic in order to help boost flagging vehicle sales.

Vietnam’s fintech reaches new heights

VGP - Viet Nam's fintech has reached new heights and the newly introduced regulatory sandbox is further fueling its growth.

Moody’s upgrades ratings of eight Vietnamese banks

VGP - Moody's Investors Service, a leading provider of credit ratings, research, and risk analysis, has raised ratings of eight Vietnamese banks.

MOIT: electricity prices to be set by March 31

The Ministry of Industry and Trade (MOIT) has asked the Electricity of Vietnam (EVN) to negotiate with solar and wind power project developers and reach agreements about electricity prices prior to March 31.

Sapa mother fined for forcing her children to work

A woman in the northern tourist town of Sapa has been fined VND 22 million for forcing her two small children to sell products to tourists in the area.


Vietnam works hard to boost exports to Chinese market

Bamboo Airways wants to add VND10 trillion to charter capital

Bamboo Airways is planning to increase its charter capital by nearly VND10 trillion through a new share issue to restructure its debt and fund its business operations.

Vietnam's first community digital library to open in Quang Nam

The central province of Quang Nam's Tam Ky City’s first community digital library in Vietnam will open soon.

White List of certified websites released

The Authority of Broadcasting and Electronic Information under the Ministry of Information and Communications has announced on its website the White List of certified websites.


Japan invites Vietnam to G7 Summit, says deputy spokeswoman