The real estate sector in Vietnam is the second-biggest recipient of foreign direct investment (FDI) in the last two years after the manufacturing and processing industries, according to Regina Lim, JLL Singapore’s National Director for Advisory and Research for Capital Markets.

Interest in the Vietnamese property market has gradually been recovered since 2013 thanks to higher confidence in the national economy.

Vietnam's real estate sector attracted up to USD11 billion in FDI in the first nine months of this year, up 12% on-year.

Vietnam is among the fastest growing countries in Southeast Asia with some 60% of its 90 million population under 35 years old, which is one of the conditions for the country's economic development.

Manufacturing and services have seen a considerable growth over the past two decades and are expected to continue rising in the next ten years. Higher economic growth and lower inflation rates make Vietnam more attractive to foreign investors, particularly in property, Lim said.

According to Lim, interest in the Vietnamese property market has gradually been recovered since 2013 thanks to higher confidence in the national economy.

Furthermore, regulatory changes implemented in July last year have made it easier and safer for foreigners to own property, stimulating stronger residential sales in 2015 and the first half of 2016.

In June 2015, the government eliminated the 49% limit on foreign ownership in many listed companies, which helps to boost investment inflows and providing a good opportunity for foreign developers to take on a majority stake in residential projects in partnership with local groups.

Lim forecasted that Vietnam’s residential supply is expected to grow by 74% over the next three years but was confident the market will be able to absorb the increase.

Dtinews