Want to be in the loop?
subscribe to
our notification
Business News
AROUND $370 MILLION IN FDI INFLOWS FLOOD THE REAL ESTATE SECTOR
Foreign capital is pouring swiftly into the real estate market despite the depressing internal environment.
As of February 20, according to the Ministry of Planning and Investment, the real estate sector placed second among businesses and areas that are attracting foreign investment with the total investment capital of almost $396.9 million, representing more than 12.8 per cent of the total. Compared to 2022, this figure climbed more than threefold.
Several industry professionals believe that industrial real estate will be the brightest light in the nation's real estate market in 2023. According to Trang Bui, general director of Cushman & Wakefield Vietnam, the country is the top market for industrial real estate investments.
According to her, Vietnam's location between China and Singapore and bordering the East Sea – one of the world's most important marine trading zones – gives it a strategic advantage.
Vietnam is also the gateway to Laos, northeastern Cambodia, Thailand, and southwest China, and its location at the junction of global marine and aviation routes facilitates trade with both neighbouring and distant nations.
Around 40 per cent of cargo travelling from the Indian Ocean to the Pacific will transit the East Sea en route to China, Japan, South Korea, and the United States.
Economist and Associate Professor Dr. Dinh Trong Thinh determines that Vietnam's real estate still has deficiencies in some areas. Thus, there are still several aspects that would benefit from international investment. Specifically, infrastructure is the component that helps Vietnam to lure foreign investment in general, and the real estate industry in particular.
The tourism and resort real estate sectors follow. Although Vietnam has developed a number of attractive tourist and resort locations over time, unfortunately, the optimal method for managing the firms and the substantial client base has not yet been established.
"If international companies invest, it will increase the number of tourists visiting Vietnam. In addition, there are relatively few items in the low-cost commercial housing market since investment is primarily concentrated on high-quality products," stated Thinh.
According to the General Statistical Office, the number of newly founded real estate enterprises in the first two months of 2023 was just 550, a 62.4 per cent decrease from the same time in the previous year.
Additionally, 235 businesses were closed, an increase of roughly 20 per cent over the same time frame.
There were 608 real estate businesses that resumed operations, a decrease of 18.8 per cent.
Source: VIR
Related News
SPECIAL INVESTMENT PROCEDURE: A GAME CHANGER FOR HIGH-TECH PROJECTS IN VIET NAM
Viet Nam is poised for a regulatory shift with the upcoming implementation of a special investment procedure starting earlier next year. Starting from January 15, 2025, investors will be able to enroll for investment under special procedures as outlined in the Draft Decree detailing the Investment Law.
CLEAR LEGAL FRAMEWORK NEEDED TO UNLOCK DIGITAL ASSET POTENTIAL
The past decade has seen remarkable advancements in technology worldwide, particularly in digital assets such as blockchain, cryptocurrencies, asset tokenization and decentralized finance (DeFi). Once unfamiliar, digital assets have now become integral to the global financial system. Leading nations in this field not only to drive innovation but also establish a strategic edge in the global economy.
VIETNAM TO RANK AMONG TOP 15 LARGEST ECONOMIES IN ASIA BY 2025
Based on data from the International Monetary Fund (IMF), Seasia Stats predicts that Vietnam’s economy will reach $506 billion in 2025, earning it a place in the top 15 largest economies in Asia. “Vietnam is rapidly developing thanks to its manufacturing boom and strong foreign investment inflows,” Seasia Stats noted.
PM ORDERS SWIFT RESOLUTION OF CHALLENGES FOR RENEWABLE ENERGY PROJECTS
Prime Minister Phạm Minh Chính has laid stress on the need to complete the resolution of obstacles for renewable projects by February 2025 to prevent wastefulness, contributing to ensuring electricity for development.
VIETNAM'S GDP GROWTH WILL LEAD THE REGION IN 2025
A report published by Oxford Economics on December 16 noted that Vietnam's economy has been the region's outperformer in 2024, with full-year growth likely at 6.7 per cent on-year. The country is expected to continue to outperform its peers next year, growing by 6.5 per cent.
HANOI'S ECONOMY CONTINUES TO SUSTAIN GROWTH
Speaking at the opening session of the 20th meeting of Hanoi People’s Council on December 4, Deputy Chairman of Hanoi People’s Committee Ha Minh Hai reported that the capital’s economy has maintained high growth, with regional GDP rising by 6.12 per cent in the first nine months of the year, and expected to exceed 6.5 per cent for the full year.