Want to be in the loop?
subscribe to
our notification
Business News
VIETNAM REAL ESTATE STILL ATTRACTIVE TO FOREIGN INVESTORS
In 2021, COVID-19 epidemic outbreaks caused considerable impacts on the real estate market across the country. After each occurrence, the property market often oscillated strongly to paint a very colorful picture.
Overcoming hardships in 2021
According to the Ministry of Construction, new supplies on the Vietnamese real estate market fell by half in the first 11 months of 2021, while successful transactions slumped 20% from a year earlier.
Prices of residential land in some localities advanced in the late first quarter and early second quarter, for example in Quoc Oai (up 20%), Ba Vi (45%), Bac Ninh (20%) and Hung Yen (26%). Thanh Hoa, Thu Duc City and other places also witnessed land price hikes in a short time. Seeing this phenomenon, the Government, the Ministry of Construction, and the Ministry of Natural Resources and Environment directed local authorities to deliver timely warning notices and publicize information on land-use planning and land prices to quickly cool down land price increases.
Despite being directly affected by the pandemic, vacation property was dull in the gloomy picture in 2021. According to experts, this segment improved after the prolonged social distancing period and resumed reception of international tourists from November. Industrial real estate stood firm during the pandemic. Even in the fourth quarter, rental prices of industrial real estate looked up.
Notably, some new policies touched the real estate market, such as the Prime Minister’s Decision 27/2021/QD-TTg on reducing land rents in 2021, and the Ministry of Construction’s Circular 09/2021/TT-BXD on implementation of criteria for investor selection in social housing construction investment projects in order to promptly support businesses and investors.
Expectations on early market recovery
Neil MacGregor, Managing Director of Savills Vietnam, said that Vietnam has been an attractive destination for real estate investors in the world. Not only industrial real estate but also residential real estate, holiday real estate and health real estate are magnets for foreign investors.
According to data from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI), as of December 20, 2021, the real estate sector drew a total of US$2.6 billion from foreign investors, becoming the third-largest recipient of FDI funds, accounting for nearly 9%. Typically, Ascott Group Ltd (Capitaland) acquired the 364-apartment Somerset Metropolitan West Hanoi for US$93 million. Aortronic Joint Stock Company, a real estate developer, bought Phu My Industrial Park (Ba Ria-Vung Tau) for about US$30 million. These are the clearest proofs of investment appeal in Vietnam.
Mr. Nguyen Van Khoi, Standing Vice Chairman of the Vietnam Real Estate Association, said that Vietnam's real estate market reportedly has much room for development and is expected to recover soon as demand in many segments is still high. When the Government's support policies are in place, Vietnam's real estate market will surely accelerate and boom.
From a business perspective, Mr. Nguyen Quoc Hiep, President of GP Invest, said that real estate is typically governed by more complicated legal procedures than other sectors as it is regulated by 12 different laws, such as the Law on Land, the Law on Housing and the Law on Real Estate Business. Therefore, in order for Vietnam's real estate market to attract more and more international investors, it is important to have an enabling legal corridor.
According to Mr. Can Van Luc, an economist, the real estate market in 2022 will be like a "bull" in the stock market, which symbolizes an advance and growth. However, it still depends a lot on policies, economic resilience and business capacity.
When the new normal status is in place and the epidemic is controlled, the property market is likely to revive strongly in 2022.
Source: VCCI
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
ONE-TIME OFFER: COMPLEMENTARY CATHAY PACIFIC LOUNGE PASS
Begin your trip on the right note in Cathay Pacific’s first-ever ferry lounge, located at Shenzhen’s Shekou Cruise home port. Situated at the end of the pier, the ferry lounge offers a breathtaking 270-degree view of the sea. You can immerse yourself in sheer luxury and revel in the panoramic beauty. Catch a glimpse of Hong Kong in the distance.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).
![Card image cap](/uploads/news/Investment6.jpg)
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.
![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/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.