Vietnam real estate attracts new generation of FDI capital

FDI in real estate has increased sharply thanks to a more transparent investment environment and a new legal framework supporting foreign capital flows.

Real estate ranks second, only after the processing and manufacturing industry, in terms of newly registered FDI capital in Vietnam, continuing to affirm its important position in the structure of foreign capital attraction. Not only newly registered capital, but also capital adjustment, capital contribution and share purchase activities of FDI enterprises have all improved.

By the end of October, there were 2.75 billion USD of newly registered capital and about 1.5 billion USD of disbursed capital from FDI enterprises in real estate. The capital structure has also changed, increasingly flowing into industrial real estate, infrastructure real estate, new urban areas, logistics zones, smart urban areas, etc. This is in line with global trends and reflects the long-term vision of foreign investors.

Experts say one of the driving forces to attract FDI into real estate is investment policies and an improved business environment. Vietnam has implemented many administrative reform measures, digitized procedures, and increased transparency in licensing and land management, reducing costs and risks for foreign investors.

Laws such as the Land Law, the Real Estate Business Law and the Housing Law, which have been recently amended and supplemented, also create more favorable conditions for mergers and acquisitions (M&A), capital contributions and foreign investment in projects.

At the same time, the prospects of infrastructure and urbanization also have a certain impact on attracting foreign capital into real estate. Especially when Vietnam is in a period of strong infrastructure development with a series of transportation projects such as bridges, highways, metro, airports... being implemented synchronously.

This creates a great attraction for industrial real estate, logistics and satellite cities. FDI capital flows not only seek traditional industrial parks but also increasingly invest in “green” industrial parks, logistics zones adjacent to ports, or new urban projects associated with high-end infrastructure.

Source: VTV