Real estate attracted the third-largest amount of FDI flowing into Vietnam during 2015.
The latest figures from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment reveal that in the fourth quarter real estate remained among the leading sectors in terms of foreign direct investment (FDI) attraction, with total capital of $2.32 billion.
During the closing months of the year 29 projects were newly-registered in real estate and ten projects given permission to increase their capital. The capital of $2.32 billion accounted for 11.5 per cent of the total investment capital coming to Vietnam this year and ranks real estate third in attracting FDI.
FDI into real estate has been on the rise in recent times. The majority of capital in foreign property projects, however, has been mobilized inside Vietnam. The amount of foreign capital is therefore less than committed. While this is not in violation of the law it will have a negative effect on the aim of bringing in external resources to the country.
The flow of foreign investment in property should be directed to projects such as hotels, resorts and urban areas, while projects in general that apply green technology should be prioritized
Most experts believe foreign capital will continue to flow in increasing amounts into the real estate sector in the future, with the emergence of a number of billion dollar projects