Real estate has always been one of the economic sectors attracting the most FDI for years. The FIA’s latest report showed that foreign investors registered to invest $28.24 billion in Vietnam in the first 10 months of the year, an increase of 37.4 percent over the same period last year.

Of 19 business fields foreign investors plan to pour money in, real estate ranks third in amount of committed capital with $2.04 billion, accounting for 7.2 percent of total registered capital. 

The first and second positions belong to the manufacturing & processing industry and to the electricity generation & distribution sectors.

Some economists say that foreign investors invested in the real estate sector because they just want to make profits in Vietnam, and don’t intend to do long-term business here. 

Of 19 business fields foreign investors plan to pour money in, real estate ranks third in amount of committed capital with $2.04 billion, accounting for 7.2 percent of total registered capital.

Meanwhile, when attracting FDI, Vietnam not only aims to lure foreign capital, but also hopes that it would receive technology transfer from foreign manufacturers.

Meanwhile, Nguyen Mai, a renowned expert on FDI, has a positive outlook about  investment in the real estate sector, saying that Vietnam has certain benefits from foreign-invested real estate projects.

Foreign real estate developers come to Vietnam mostly to build houses and apartments, offices for leasing and hotels, which serve as infrastructure for economic development, and therefore, such projects are very useful. 

South Korea, Japan, Taiwan and Singapore are among the biggest foreign investors in Vietnam and all of them have investments in real estate projects.

In fact, the foreign capital flow into the sector slowed down when the domestic real estate market froze several years ago. However, foreign investors have come back as the market has warmed up with high demand in the office and apartment market.

The investors also make capital contributions to Vietnamese real estate firms, and take over projects with difficulties because of lack of capital. All these activities bring benefits.

Japanese investors, for example, when buying a stake of Vietnamese companies, pass their experience to Vietnamese companies and join their management boards. 

“Vietnamese can learn from foreign partners how to carry out marketing campaigns, how to attract customers and how to cooperate effectively with banks. All these benefit Vietnamese,” Mai said.

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