Vietnamese real estate continues to attract foreign investors, although the ongoing the COVID-19 pandemic did cause the total volume to decline year-on-year. Overseas firms invested an estimated USD1.6 billion in Vietnam property during the first three quarters of this year.
The industrial property segment continues to be the most in demand from foreign investors with new industrial zones established and key industrial projects beginning operations this year. A report in Voice of Vietnam noted that manufacturing projects in the northern provinces of Quang Ninh and Bac Giang were popular with firms from Singapore and Hong Kong.
Savills added that foreign investors from Japan, South Korea and Singapore are investing in Vietnamese real estate as it aligns with their strategy of expanding and diversifying investments with an eye on tapping into emerging markets or frontier markets.
Continued foreign investment into the Vietnam property sector is also a byproduct of the country’s political stability, positive economic growth and stable inflation among other factors Economist Dinh Trong Thinh told the website.
He also cited Vietnam’s continued urbanization, rapid increase in urban population and rising per capita income as reasons why real estate in the country is popular among international investors.
Meanwhile, A Ministry of Construction representative told Viet Nam News that solid fundamentals are currently in place which will allow the property sector to flourish in 2021. The source added industrial real estate is already at pre-pandemic levels and some developers in this sector brought in record profits last year.
That industry will benefit even further with the European Union-Vietnam Free Trade Agreement (EVFTA) coming into effect. Several large multinational corporations already have plans to relocate to Vietnam in the coming months.
During the first three quarters of 2020, a total of USD2.87 billion of foreign Vietnamese real estate investment was made. The decline this year was attributed to issues potential investors were having in organizing fact-finding tours that would allow them to make buying decisions.
