Vietnam is receiving a considerable amount of FDI that is being pumped into real estate.
A record amount of foreign direct investment has been injected into Vietnamese real estate this year. This is according to the Foreign Investment Agency. A total of USD 345.5 million has been invested, accounting for 10 percent of all FDI. If compared to the same period in 2016, this is a twelvefold increase.
For the same period, from the start of the year until 20 February 2017, 11 new projects received licenses. These projects are the equivalent of USD 309 million illustrating the strength of the market.
Vietnamese real estate is a hot investment option globally at present. Ho Chi Minh City’s buoyant market is catching the eye of international investors keen to profit from its success. This year is expected to remain in an upwards cycle squashing any thoughts that a bubble maybe imminent. A sentiment that is echoed by real estate firm Jones Lang Lasalle Vietnam who expect a record number of transactions for the real estate sector this year.
The huge figures involved in the property sector are propelling the country’s economy. It has been recorded that there is a total value of USD 1.3 billion inventory across the country according to the Housing and Real Estate Market Management Agency, part of the Ministry of Construction. This inventory is focused mainly in Ho Chi Minh City and Hanoi.
