Business News

Under the decision, organisations, units, businesses, households, and individuals that lease land and water areas from the State in the city will enjoy a 30 per cent reduction in rent. This regulation does not apply for land and water area rents owed in the years before 2022.

“Industrial real estate is an area with great promise, and a growing number of investors are entering this arena. However, we have a severe lack of units specialised in the administration and operation of industrial zones (IZs),” said Nguyen Dinh Nam, founder and general director of IPA Vietnam Corporation.

The demand for industrial land for rent in Vietnam will remain high this year thanks to policies promoting investment in the country, experts said. Due to short supply, rental prices for industrial land are expected to continue to rise by an average of 8-20% year-on-year in 2023, depending on the region, according to a report by the SSI Securities Corporation.

The real estate sector ranked second in the list of industries attracting FDI in 2022, with more than US$4.45 billion, accounting for 16.1% of total registered investment capital. According to the Foreign Investment Agency, Ministry of Planning and Investment, in the past year, foreign investors poured funds into 19 industries out of a total of 21 national economic sectors.

The real estate market is falling short of funding when banks and corporate bonds are simultaneously tightened, leaving companies unable to respond to sudden changes that result in a halt to a lot of projects. Clearing this "bottleneck" is a big concern of authorities, investors and people because this is a key market that plays an important role in attracting resources and developing many other industries and fields.

According to the Ministry of Planning and Investment, foreign direct investment (FDI) last year reached its highest level in the past five years at $22.4 billion, up 13.5 per cent over the previous year. Among those, real estate took the second-highest position with 16 per cent.

According to data from batdongsan.com, the investor sentiment index for the start of 2023 is 36 points, a significant decrease from 47 and 40 points in the first and second halves of 2022, respectively. The category in which real estate purchasers' and sellers' enthusiasm decreased the most was real estate loan interest rates.

After a lengthy period of inactivity, the real estate market in and around Ho Chi Minh City is resuming deals, mostly in new full-scale developments. Property prices in the central district of Ho Chi Minh City have risen to such an extent that many young people are choosing to purchase homes in the suburbs, where costs are more affordable.