Foreign investment in real estate sector in HCMC spikes after years of dormancy
VietNamNet Bridge – New World, Diamond Plaza and other imposing construction works are considered symbols of a dynamic HCMC. They were all all developed by foreign investors.
According to the Foreign Investment Agency (FIA), in the first four months of 2018 alone, Vietnam licensed 883 foreign invested projects with total investment capital of $3.55 billion. Of this, $807.5 million worth of capital was registered to develop real estate projects.
To date, the real estate sector had attracted $51.3 billion worth of FDI.
In mid-April, at a working session with HCMC Mayor Nguyen Thanh Phong, CEO of Lotte Asset Development Lee Kwang Young showed Lotte’s determination to develop Thu Thiem Eco Smart City in Thu Thiem new urban area in district 2.
Analysts say that Vietnam’s and HCMC’s real estate markets have been developing in a stable way in recent years, especially after the real estate crash in 2007.
The stable development of the market is partially attributed to the presence of FDI capital.
In the last two years, in the context of the strong discovery of the real estate market, many projects kicked off again after a long period of hibernation.
Su Ngoc Khuong from Savills Vietnam commented that unlike previous years, when foreign capital flowed to Vietnam under FDI, the capital now enters Vietnam through M&A deals.
The new capital flow goes directly to projects, and the projects are implemented soon after the M&A deals.