Investment News

Real estate FDI promotes sustainable growth in the long-term market


The Ministry of Construction cited data reported by the Foreign Investment Department (Ministry of Planning and Investment), announcing that foreign capital (FDI) to invest in the real estate sector in the whole year of 2022 has increased by 1.85 billion VND. USD, an increase of more than 70% compared to the whole year of 2021 and holding the 2nd position in the fields of FDI attraction in 2022 with a total investment of more than 4.45 billion USD, accounting for 16.1%.


Phu My Hung urban area, District 7. Illustration: Quang Nhut/VNA

According to the Ministry of Construction, FDI into the real estate sector mainly focuses on the industrial real estate market and some large real estate projects. In the difficult context of the real estate market, FDI is a reliable source of capital for domestic real estate enterprises, helping to promote the sustainable growth of the market in the long term.

Looking at the results of attracting FDI into the real estate sector in 2022, Mr. Troy Griffiths - Deputy General Director of Savills Vietnam said that the Vietnamese market still has a strong attraction for real estate investors. despite the world economic context with many fluctuations.

"They see this as an attractive place to do business with a large working-age population and many attractive policies. Vietnam is a market with positive growth, suitable for doing business and continuing to invest. for a long time with low risks and the inflation rate is kept at a safe level" - Mr. Troy Griffiths commented.

However, in the report on socio-economic situation in January 2023 published by the General Statistics Office (Ministry of Planning and Investment), from the beginning of the year to January 20, 2023, the total registered FDI capital into Vietnam (including newly registered capital, adjusted registered capital and value of capital contribution and share purchase by foreign investors) reached USD 1.69 billion, down 19.8% over the same period last year. last year.

Notably, as of January 2023, among newly licensed FDI projects, those related to the wholesale and retail sectors, and repair of automobiles, motorcycles, motorbikes and motor vehicles. Others have the largest proportion of registered capital, reaching 651.9 million USD, accounting for 54.1% of total newly registered capital. Following is the processing and manufacturing industry with 351.2 million USD, accounting for 29.1%; the remaining industries reached 201.9 million USD, accounting for 16.8%.

In 2022, attracting FDI into the real estate sector will always keep the second position in general FDI attraction. But in the first month of 2023, the real estate sector has temporarily not maintained the No. 2 position in the table of attracting new investment. However, because the first month of the year coincides with the long Tet holiday and is only a "warm-up" time, this number is expected to increase and regain the ranking for real estate in the coming months.

Experts share the same opinion, although the total registered FDI capital into Vietnam in January 2023 decreased by nearly 20% compared to the same period in 2022, there is a positive point that in January 2023 there were 153 projects approved. newly licensed capital, with a total registered capital of 1.2 billion USD, up 48.5% in number of projects and 3.1 times in registered capital over the same period last year.

The result of attracting new projects in January 2023 is still considered a positive signal, opening opportunities for Vietnam in 2023 when many forecasts show that Vietnam can attract from 36-38 billion USD.