$2.4 BILLION FOREIGN INVESTMENT REGISTERED IN REAL ESTATE IN FIRST EIGHT MONTHS

More than $2.4 billion of foreign investment was newly registered in the real estate sector in the first eight months, over five times higher than the same period last year, and accounting for nearly 20 per cent of the total $12 billion newly registered capital.

According to the General Statistics Office, as of August 31, the total foreign direct investment (FDI) registered in Vietnam reached $20.52 billion, an increase of more than 8 per cent over the same period last year.

The newly registered capital came from 2,247 licensed projects, totalling nearly $12 billion, representing an 8.5 per cent increase in the number of projects and a 27 per cent rise in registered capital compared to the same period last year.

Including both newly registered and adjusted capital, FDI in real estate business amounted to $2.55 billion, 3.7 times higher than the same period last year, accounting for 14.4 per cent of total newly registered capital.

In addition, capital contributions and share purchases by foreign investors in real estate business reached nearly $812 million, accounting for 29 per cent of total investment in this form.

Savills Vietnam recently named three outstanding real estate merger and acquisition deals in Vietnam in Q2.

The most valuable deal was Kim Oanh Group (Vietnam) cooperating with NTT Urban Development, Sumitomo Forestry, Kumagai Gumi Co Ltd (Japan) to develop The One World, a 50-hectare residential area in Binh Duong province. The project has a total investment of more than $1 billion including shophouses, townhouses, compound villas and apartments.

Next is a deal for Electronic Tripod Vietnam belonging to Tripod Technology Group (Taiwan) to acquire an 18-hectare industrial land plot in Chau Duc district of Ba Ria-Vung Tau from Sonadezi. Tripod Vietnam will deploy the construction of Electronic Tripod Vietnam Factory with an investment capital of $250 million.

Third is Nishi Nippon Railroad (Japan) acquiring 25 per cent of the shares in the 45.5-hectare Paragon Dai Phuoc project located in Dong Nai province from Nam Long Group for about $26 million.

According to Savills Vietnam, amid weak global purchasing power, geopolitical tensions and inflationary pressures, economic challenges are likely to continue in Q4 of this year, but positive FDI and infrastructure investment domestically will be a positive trend.

Source: VIR