Want to be in the loop?
subscribe to
our notification
Business News
HOUSING PROJECTS TURN ATTRACTIVE TO FOREIGN BUYERS
The figure is well above 250 house transactions with foreign involvement in the country from 2008 to July 2015 when Vietnam adopted a pilot plan to sell houses to certain groups of foreigners and overseas Vietnamese.
HoREA said the number of overseas Vietnamese owning homes in the country has also edged up thanks to the revised housing law, which makes it easier for overseas Vietnamese to own homes and obtain land-use right certificates.
In addition to more money from foreign homebuyers, the property market has lured more bank loans, foreign direct investment (FDI) capital and incoming remittances.
A recent report of HoREA on the property market showed bank loans for the market alone grew some 18% last year, well above 15% in 2014.
HCMC, the biggest real estate market in Vietnam, saw credit for real estate projects amounting to VND140 trillion (US$6.2 billion) in 2015, accounting for 12.3% of total outstanding loans.
According to statistics of the State Bank of Vietnam (SBV) and the Ministry of Construction, credit for the property market made up 23.5% of total outstanding loans in 2010, 11% in 2011, 14% in 2012 and 14.7% in 2013 and 15.2% in 2014.
Average credit growth in the real estate market stood at 14-15% per annum in the 2012-2014 period, and the percentage last year was the highest in five years.
New policies of the Government and the SBV supported the recovery of the real estate sector. Many banks joined hands with realty developers to fund their projects and support homebuyers, HoREA said in its report.
Incoming remittances in HCMC totaled US$5.5 billion last year, equivalent to 38.69% of Vietnam’s total. Of the amount, around 21.6% went to the property market.
Of US$22.76-billion FDI approvals in Vietnam in 2015, some US$2.32 billion flowed into projects in the real estate sector, which was ranked third in terms of attractiveness for foreign investors. HCMC’s property market alone lured some US$1.3 billion in FDI in the same year.
A number of foreign firms have invested in property projects in Vietnam by acquiring shares of developers, contributing capital and lending.
Source: VNEP
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.