Nearly 450 billion USD of FDI poured into Vietnam

Nguyen Anh Tuan, Deputy Director of the Foreign Investment Department, Ministry of Planning and Investment at the international conference "Potential for development of the real estate market in Vietnam", chaired by the Ministry of Construction and coordinated with Investor Magazine this morning (July 13).

Mr. Tuan said the real estate sector is one of the fields that attract many foreign investors in Vietnam. Over the past 35 years, with the participation of foreign investors, the real estate sector in Vietnam has made important developments. Besides adding important capital to the economy, the participation of foreign investors in the real estate sector has contributed to standardizing the real estate market in Vietnam...

Up to now, the country has attracted more than 37,500 projects with a total investment capital of nearly 450 billion USD, of which 1,100 projects have been invested in real estate with total investment capital of 66.4 billion USD, accounting for 15% of total investment capital. Real estate is the second sector in attracting investment, after the manufacturing and processing industry.

Of which, 48 countries/territories have invested in the real estate business, led by Singapore, followed by South Korea, British Virgin Islands and Japan. Locally, there are 45 provinces/cities that have invested FDI in the real estate sector, of which Ho Chi Minh City has invested in real estate. Ho Chi Minh City leads the country with a total registered investment capital of over 16 billion USD, accounting for 24.7% of total investment capital, followed by Hanoi, Binh Duong and Ba Ria Vung Tau.

In terms of project scale, the majority of FDI enterprises participating in the real estate sector in Vietnam are large-scale enterprises, with increasingly diversified and better quality forms. Many FDI projects invest in real estate with scale up to billions of USD such as: Ho Tram Co., Ltd in Ba Ria Vung Tau; smart city in Hanoi; Nam Thang Long Urban Area, Hanoi, Nam Hoi An Development Company Limited in Quang Nam...

According to Mr. Tuan, attracting many FDI projects in the real estate sector helps diversify types of real estate in Vietnam. In recent years, industrial real estate, residential and high-class apartment buildings, resort real estate, healthcare real estate... have increased markedly besides traditional types such as residential real estate.

Ong Nguyen Anh Tuan, Deputy Director of Foreign Investment Department.

However, Mr. Tuan said that besides these advantages, a number of foreign-invested real estate projects are still inefficient, large-scale projects but slow in implementation as well as problems related to social order. In addition, the legal system on the real estate market is not synchronized, clear and complicated, and it is not timely revised; administrative procedures related to investment, construction, bidding, especially land are extremely complicated, leading to prolonged implementation of investment projects; Real estate credit and corporate bond issuance are under strict control... all of these factors will affect the development of the real estate sector in the coming time.

Towards green and sustainable real estate

With the policy of attracting foreign investment selectively, prioritizing projects with high added value, positive spillover effects, creating good linkages between the foreign investment sector and the domestic sector; projects that bring efficiency and make substantial contributions to the economy, in the coming time, attracting foreign investment in the real estate sector in the coming time should aim to ensure the elements of green transformation, environmental friendliness, towards the development of smart urban areas; Smart city, industrial real estate towards ecological transformation model…

In order to select quality FDI investors in the real estate business, the Deputy Director of the Foreign Investment Department said that Vietnam needs to focus on solving a number of issues as follows.

It is necessary to continue to review and complete legal regulations on the real estate market, especially new types of real estate (smart cities, resort real estate, real estate combined with health care, condotels, officetels...) in line with international practices.

At the same time, actively attract investment selectively, targeting investors with good financial capacity, with solutions associated with the model of green and sustainable economic transformation; at the same time, uphold the responsibility of investors towards the environment and society during the investment process in Vietnam.

In addition, urgently and flexibly and synchronously administer monetary policy tools to meet the needs of credit capital flows for real estate market development. Creating conditions for businesses, home buyers and investors to quickly access credit capital. Reducing loan interest rates, supporting the real estate market.

Meeting actual requirements, continuing to improve and improve the quality of infrastructure in general and transport infrastructure in particular to create a foundation for the development of the real estate market. Continue to improve an attractive, competitive and open business investment environment, promptly remove difficulties and obstacles in policies to create the most favorable conditions for investors, especially for large land-use projects but slow to implement.