return icon

Vietnam to see new FDI trend in real estate

Investment in real estate sector through capital contribution would avoid risks that might cause to new comers who know little about the market and law.

Vietnam is likely to see waves of foreign direct investment (FDI) into real estate sector in 2020 through capital contribution and share purchase.

Indeed, statistics by the Ministry of Planning and Investment showed that FDI into this sector through capital contribution and share purchase reached a record high of US$1.75 billion in the first ten months 2019, soaring 235% on year.

 Investment through capital contribution becomes more popular in Vietnam

The movement reflects the complementary support which both domestic and foreign firms realize that they can offer to each other, according to Vietnam Briefing.

It can be explained that cooperation with Vietnamese firms through share purchase and capital contribution enables foreign investors to get access to land plots without cumbersome procedures and regulations that the investors themselves sometimes could not manage to overcome.

This means foreign investors become shareholders in the Vietnamese property firm.

Of foreign investors, Chinese ones have managed to seize this opportunity with large investment inflow with five out of seven biggest capital contribution and share repurchase projects as of May 2019 belonging to Chinese investors.

According to VnEconomy, this kind of investment is attributed to three reasons: high demand for real estate in Vietnam; limited number of new real estate projects in need of capital; and challenges caused by rising land prices together with legal loopholes.

In addition, due to the State Bank of Vietnam’s stricter control on bank loans to domestic real estate developers to avoid a market bubble, Vietnamese firms often turn to foreign investors through shares sales and joint ventures as a new funding source.

This trend is likely to continue in 2020 as foreign investors keep an eye on Vietnam’s real estate, making this sector a matter of attention.

In reality, listed property developers namely Vingroup, Novaland, Nam Long, Thuduc House, NBB, among others have cooperated with foreign partners over the past years to develop a number of projects.

The list of domestic property developers partnering with foreign investors has been added with Phat Dat Corporation and TTC Land with Japanese and South Korean partners, respectively.

VnEconomy quoted an executive of a domestic real estate company as saying that the partnership with foreign firms now becomes broader in which foreign investors hold stakes at the local firm and participate in creating strategic plans and developing projects instead of working as consultancy, operator, or capital contributor. Hanoitimes

Linh Pham

Real estate retains second position in FDI attraction

Real estate retains second position in FDI attraction

Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.

FDI inflow makes new 10-year record in 2019

FDI inflow makes new 10-year record in 2019

Total inflows of foreign direct investment (FDI) into Vietnam amounted to 38.02 billion USD this year to December 20, a 10-year high, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.



Vietnamese nationals rescued from Philippine human trafficking ring return home

Nha Trang Sea Festival director dies in accident

A Khanh Hoa Television Station director has died after falling off a scaffold while conducting an inspection of the grandstands of the Nha Trang Sea Festival 2023 on Monday.

Khanh Hoa reclaims resort mansion of late King Bao Dai

Authorities in the central coastal province of Khanh Hoa have just reclaimed a complex of five French style villas which used to host late King Bao Dai and his family during their holidays for better preservation.

Vietnam among top three attractive destinations for RoK visitors

Vietnam is among the top three most favourite tourist destinations for Korean visitors in Asia, according to statistics from KB Kookmin Card of the Republic of Korea (RoK).


Vietnam's GDP growth slows in Q1 ahead of expected recovery

VN received 4.6mil foreign visitors in five months, over half the year’s target

Vietnam welcomed nearly 4.6 million international arrivals in the first five months of 2023, soaring 12.6-fold from the same period last year, according to the latest report from the General Statistics Office (GSO).

Japanese dolls go on display in Da Nang

An exhibition of Japanese dolls celebrating the 50th anniversary of the establishment of diplomatic relations between Japan and Vietnam will open at the central city’s Fine Arts Museum on May 30.

International chess masters to play in Da Nang

The city’s culture and sports department said the tournament will see chess masters playing in a round-robin in four groups, with two top each qualifying in the quarter-finals.

380 new species discoveries in the Greater Mekong region: WWF report

With many of the species already under threat of extinction from human activities, WWF is calling on governments in the region to increase protection for these rare, amazing creatures and their habitats.

VN consumers, businesses urged to join fight against counterfeit sold online

Consumers and businesses are called on to join authorities to curb counterfeit, fake, and smuggled goods on online shopping platforms, particularly as e-commerce has been thriving strongly in Vietnam.

Vietnamese students bag six medals at Asia-Pacific Informatics Olympiad 2023

All six Vietnamese students competing at the Asia-Pacific Informatics Olympiad (APIO) 2023 won medals, including four silvers and two bronzes, the Ministry of Education and Training announced on May 30.

Devalued by billions of dollars, shares face transaction restrictions

VNZ shares of VNG, a tech unicorn, were added to the restricted trading list after the company was late in submitting its financial report. The VNZ price has plummeted by 45 percent from its peak, but is still the highest-priced in the stock market.

Livestock industry's small farms in distress, big farms deep in debt

Having to sell fowl and pigs below production costs, many farmers are crippled with debt. Even big players in the animal husbandry are incurring big losses.

Vietnam posts trade surplus of 9.8 billion USD in five months

Vietnam’s import-export value in the first five months of this year was estimated at 262.54 billion USD, down 14.7% year-on-year, with a trade surplus of 9.8 billion USD, the General Statistics Office (GSO) announced on May 29.

Anh Vien: From champion swimmer to inspirational swimming coach

Now, in a new role akin to a swimming ambassador, Anh Vien is eager to share her knowledge and expertise with children, teenagers, adults, and even older individuals, introducing them to the joy of swimming and fostering a love for the sport.