Monday, 17/06/2024 | 08:56 PM
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Real estate sector enjoys surge from FDI flows

Along with a remarkable rebound, the country’s real estate sector continues to enjoy foreign direct investment (FDI) flows.

According to report from the Foreign Investment Agency under the Ministry of Planning and Investment, the sector has attracted 461.5 million USD in the first five months of 2015.

Data from Ho Chi Minh City ’s Department of Statistics reported that as of May 15, the city’s capital construction investment reached nearly 40 trillion VND (1.9 billion USD); of 11,000 newly established firms, 2,600 work in construction and real estate.

The southern hub’s People’s Committee revealed that from 2011 to 2015, the city had 5,331 FDI projects with total investment capital of 36.65 billion USD, of which the real estate sector accounted for 12.3 billion USD (36.7 percent).

Su Ngoc Khuong, Director for investment of Savills Vietnam , said the FDI flow has created a driving force for growth in other markets such as retail, hospitality and tourism while the country’s real estate sector is receiving the attention of potential foreign investors from the Republic of Korea , Japan , Singapore and Indonesia .

With the revised Land of Housing, which will officially go into effect on July 1, 2015, not only overseas Vietnamese but foreigners also will have chance to own permanent property in the country, he added.

Meanwhile, General Director of Cushmand & Wakefield Vietnam Timothy Horton said the strong FDI inflows into real estate may pose the risk that foreign investors will dominate the market. He added that domestic enterprises in the sector should quickly reform themselves and join hands in order to compete against foreign rivals.

Deputy Director of Him Lam Real Estate Joint Stock Company Ngo Quang Phuc said FDI flows into the sector will increase supply, offering consumers more choices when purchasing property.

The participation of foreign investors will increase project competitiveness and transparency, which will minimize the “bubble” pricing phenomenon in the real estate market in recent years.

Source http://xaydung.gov.vn
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