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
![Card image cap](/uploads/news/bn-01.jpg)
VIETNAM INTENSIFIES E-COMMERCE TAX SCRUTINY
The department plans to offer guidance for and hold direct dialogues with e-commerce taxpayers to ensure compliance. Efforts will also include updating the e-commerce database, conducting risk analysis, and leveraging artificial intelligence (AI) to manage data and issue alerts.
![Card image cap](/uploads/news/eco2.jpg)
FOOTWEAR EXPORTS SEEN REACHING US$27 BILLION THIS YEAR
This optimistic forecast reflects the industry’s efforts to expand and diversify its markets. Lefaso indicated that Vietnam’s footwear sector will concentrate on traditional markets like the U.S. and the European Union, alongside markets with free trade agreements to maximize opportunities.
![Card image cap](/uploads/news/Security.jpg)
2025 PIVOTAL FOR STOCK MARKET UPGRADE EFFORT
The Ministry of Finance (MoF) is expected to soon publish the entire content of the draft circular amending and supplementing four circulars on transactions, registration, depository, and clearing, as well as operations of securities companies and information disclosure. This move, along with feedback and explanations, aims to meet the criteria for upgrading Vietnam’s stock market.
![Card image cap](/uploads/news/Eco3%20%281%29.jpg)
CAPITAL FLOWS STRONGLY INTO INDUSTRIAL REAL ESTATE
Industrial real estate has had easier access to bank credit since July, when the State Bank of Vietnam (SBV) reduced the credit risk coefficient for industrial real estate from 200 per cent to 160 per cent, encouraging commercial banks to lend to more projects in the segment.
![Card image cap](/uploads/news/Eco4.jpg)
GDP GROWTH REACHES 6.42 PC IN FIRST HALF
Vietnam's economy grew by 6.42 pc in the first six months of 2024, slightly lower than the figure of 6.58 pc in the same time of 2022 within the 2020-2024 period.
![Card image cap](/uploads/news/FDI.jpg)
FDI INFLOW INTO VIETNAM REACHES NEARLY 15.2 BILLION USD
Vietnam attracted nearly 15.2 billion USD in foreign direct investment (FDI) in the first six months of this year, a year-on-year increase of 13.1 per cent, according to the General Statistics Office.