FDI INTO REAL ESTATE SECTOR SURGES IN Q1

An aerial view of a residential area in HCMC - PHOTO: LE VU

HCMC – New foreign direct investment (FDI) approvals in Vietnam’s real estate sector totaled nearly US$10.98 billion in the first quarter of this year, up by 34.7% versus the year-ago period.

FDI disbursements reached an estimated US$4.96 billion between January and March, an uptick of 7.2%, showed data from the Ministry of Finance.

Newly registered capital surged by 49.2% to US$7.11 billion, while additional capital pledges rose by 4.2% to US$1.68 billion. Capital contributions and share purchases totaled US$2.19 billion, marking a 25.6% increase.

The real estate sector ranked second with more than US$2.39 billion in newly pledged investment, accounting for 21.8% of the total and rising 44.1% year-on-year.

The Ministry of Construction said Vietnam’s real estate sector is drawing foreign investment due to its strategic location, young workforce, low costs, and improved investment climate with incentives and streamlined procedures.

As of February 28, outstanding loans to the real estate sector had totaled over VND1.48 quadrillion, up about 25% year-on-year and 2% from the fourth quarter of 2024, according to a Ministry of Construction report citing data from the State Bank of Vietnam (SBV).

Real estate lending saw positive developments as the central bank accelerated disbursements from a VND145-trillion credit package for social housing and encouraged loans for projects targeting real housing demand.

The overall credit growth target for 2025 is set at around 16%, equivalent to an additional VND2.5 quadrillion for the economy.

To achieve the 8% growth target this year, the SBV will continue to implement a flexible monetary policy in coordination with other policy measures. Real estate lending will remain tightly controlled to ensure system stability and mitigate risks.

Source: The Saigon Times