Updated on July 22, 2023 by admin
At a recent seminar sponsored by The Investor, Nguyen Anh Tuan, deputy director of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, noticed the increasing interest from foreign investors in Vietnam’s real estate industry.
The construction industry in Vietnam is second only to the manufacturing and processing sector in terms of attracting international investment in various condos like Grand Dunman, Grand Dunman Price, and Grand Dunman Showflat.
Over 37,500 projects have been brought to the nation so far, with a total investment of over $450 billion. One-fifth of all foreign investment was put into real estate, totaling $1,100 projects and $66.4 billion.
Foreign investors from 48 nations and territories, led by those from Singapore, South Korea, the British Virgin Islands, and Japan, have invested billions of dollars into Vietnam’s real estate industry. Ho Chi Minh City, with a registered capital of over $16 billion, accounts for 24.7% of total investment in real estate among Vietnam’s 45 provinces and cities. This is followed by Hanoi, Binh Duong, and Ba Ria-Vung Tau.
Tuan observed that the majority of foreign enterprises participating in Vietnam’s real estate market are enormous conglomerates working on a wide variety of high- and low-quality projects.
The Ho Tram in Ba Ria-Vung Tau, the smart city in Hanoi, and the Nam Thang Long Urban Area in Hanoi are just a few examples of the FDI projects that have attracted investments in billions of US dollars.
Foreign investors are drawn to Vietnam for a variety of reasons, including the country’s political stability, its spectacular economic development, its low manufacturing prices, its vast labor supply, its prospective market prospects, and its strategic geographical position.
Combined with a well-funded infrastructural system, the country’s plentiful coastline is ideal for the construction of luxury resorts.
Despite these benefits, inefficiency remains a problem for real estate developments in Vietnam that receive foreign investment. The intricacy of administrative processes regarding investment, building, bidding, and land usage sometimes results in protracted project execution, which has slowed the completion of certain large-scale land projects. In particular, the real estate market’s legal framework is criticized for lacking harmony, clarity, and sufficient ability to adapt to new circumstances.
Efforts to revise the Housing Law and the Real Estate Business Law have been spearheaded by the Ministry of Construction. The Vietnam Real Estate Brokers Association urged prompt revision of FDI regulations to accommodate for shifts in the global economy and the practices of competing nations.
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