Real estate will attract lucrative foreign direct investments in 2015 with the market recovering and Vietnam set to join the Trans-Pacific Partnership agreement and other free trade pacts.
The Ministry of Planning and Investment's Foreign Investment Agency (FIA) announced this week that as of March 20, there were 475 foreign direct investment (FDI) projects in the real estate sector with a combined capital of 48.4 billion USD.
Singapore took the lead in FDI in Vietnam property with 75 projects and a 10-billion-USD capital, followed by the Republic of Korea with about 82 projects worth nearly 7 billion USD, and British Virgin Islands with 66 projects worth 6.1 billion USD. Other major investors included Malaysia, Canada, Hong Kong and the United States.
In the real estate sector, HCM City received the maximum FDI with more than 190 projects and a 13.4-billion-USD capital, followed by Hanoi with 92 projects valued at 8 billion USD and Ba Ria-Vung Tau with 10 projects worth 6.1 billion USD. The next were Binh Duong, Quang Nam, Dong Nai and Hai Phong provinces.
According to the FIA, 66.5 percent of all FDI projects in the property sector were wholly foreign investments, 30 percent were joint ventures, and the remainder was joint stock companies and business co-operation contracts.
The agency said many economic policies had been more open this year, with the revision of real estate, investment and enterprise laws, and they had enabled more foreign investors to take part in the domestic realty market./.