Real estate attracts the most FDI in January,1.27 billion USD. (Photo: VNA)
Hanoi (VNA)– Real estate has emerged as the biggest recipient of foreign direct investment(FDI) in January while foreigners now also have great demand for property inVietnam, statistics show.
As much as 1.27 billionUSD of FDI was poured into real estate in January, accounting for 53.9% of thetotal registered capital and doubling the figure recorded in the same period lastyear, according to the Foreign Investment Agency (FIA) under the Ministry ofPlanning and Investment.
With this result, real estate ranks first in FDI attraction aftera long time standing at the second place, after the processing - manufacturing sector.
Notably, the FDI flow into Hanoi has continued surging thanks toa new residential area project worth over 662 million USD, the FIA reported.
Besides, there is also great demand for real estate in Vietnamamong foreigners as shown in the Vietnam Institute of Real Estate Studies (VIRES)’srecent survey of 500 large investors from 10 associations of propertybusinesses and investors in such developed real estate markets as the US, the Republicof Korea, and Singapore.
It found that the top reasonfor foreign investors’ interest in Vietnamese real estate is attractive prices.
However, VIRES heldthat the country still needs to further improve the legal framework and accessto information and data to provide the best possible conditions for foreigninvestors in this sector.
About 10.5% of theinterviewed investors assessed the property market and prices in Vietnam asvery attractive, 47.4% said the market and prices are very attractive but improvement is needed in terms of legal, information and data conditions, 21.1% relativelyattractive, and 15.8% moderately attractive. Only 5.3% said the market andprices are not truly attractive.
Among real estatesegments, foreign investors are most attracted to middle- and hi-end apartments.About 57.9% of them said they are interested in buying while 36.8% want to rentthose apartments.
Demand for purchasingand renting tourism and resort property is also relatively high, at 26.3% and31.6%. Only about 5.3% of foreign investors have demand for renting and buying industrialpark real estate and renting commercial offices, the survey found./.
