FDI poured into real estate on the rise

16:07 | 15/03/2017 Economy

Foreign direct investment (FDI) in the property market has been on the rise, with nearly US$300 million in January, accounting for nearly 21% of total FDI in Vietnam.

A corner of Phu My Hung Urban Area in District 7, Ho Chi Minh City - (Credit: VNA)

Last year, the sector attracted about US$1.3 billion, making up 10% of total FDI poured into the country. The Vietnam National Real Estate Association has predicted that the market will become busier.

Ho Chi Minh City lured the highest number of FDI projects in the real estate, with investment accounting for 40.9% of the country’s total.

Notably, a joint venture between Japan’s Maeda Group and Thien Duc company of Vietnam invested US$30 million in Waterina Suites high-end apartment project in District 2.

Meanwhile, the Japanese Mitsubishi Group signed a contract with Bitexco to set up a housing development joint venture with an initial capital of about US$290 million. Another giant from Japan, Kajima Group, has also teamed up with Indochina Capital to form a US$1 billion joint venture in ten years with four projects in Hanoi, Da Nang and Ho Chi Minh City.

At the same time, the number of newly-established real estate enterprises has also increased in both quality and quantity.

According to the Business Registration Management Agency, by the end of 2016, 110,000 new enterprises were set up, a rise of 16.2% over the previous year, a record figure so far.

Total capital committed to the market reached VND891.09 trillion, or VND8.09 billion per new firm, up 48.1% year on year. Meanwhile, 26,689 businesses resumed operation, up 43.1%.