FDI structure invested in real estate in Vietnam in 2018

Economy, real estate many countries reversed

Japan, with low savings interest rates, has led Japanese companies and people to seek investment opportunities in other potential markets in Asia, especially in Southeast Asia.

Of the US $ 760 million of newly registered and additionally registered foreign direct investment (FDI) poured into Vietnam in January 1-1919, investors from Japan accounted for more than half of this figure.

According to statistics, among 19 sectors that Japan invested in Vietnam, real estate ranked 3rd in terms of capital size. Notably, the largest registered investment capital in the field of real estate in 2018 in Vietnam worth more than US $ 4.1 billion also belonged to Japanese investors. Bloomberg said that Japan is at the forefront of infrastructure investment in Vietnam.

Meanwhile, Singapore from a country attracting strong real estate investment, is currently witnessing a significant plunge.

The reason is that the government has raised the land tax and tightened the lending limit for the purchase and sale of properties, significantly affecting the liquidity of individual real estate.

Facing this situation, similar to Japan, many investors of the lion island nation have diverted and chose to pour money to invest in potential “neighboring” markets, including Vietnam.

In addition, foreign direct investment (FDI) may be poured into Vietnam more due to the effects of Sino-US trade tensions.

It can be seen that the “gloomy” situation in the investment channels of Japan, Singapore, and China is an advantage for Vietnam on the race to attract investment from other countries.

The domestic statistics show that Vietnam has its own strong attraction. Foreign direct investment (FDI) inflows into Vietnam’s real estate in 2018 amounted to 6.6 billion USD, accounting for 18.6% of the total registered investment capital – according to statistics of the Department of Water Investment outside (Ministry of Planning and Investment).

And as of March 20, 2019, real estate FDI inflows reached US $ 778.2 million, an impressive increase compared to the same period in 2018 of US $ 486 million.

Investment trends in city gateway locations

Ho Chi Minh City ranks first in the implementation of major real estate projects of the country. In particular, the Eastern gateway area will continue to lead the city real estate market, while attracting a large number of domestic and international investors thanks to the abundant infrastructure and land fund.

Particularly District 9 (in the East) is becoming the focus of investors, thanks not too far from the center, less traffic jams; There are many important transport projects to help trade and travel convenient.

In particular, this area is also focused on infrastructure investment, with the Ben Thanh – Suoi Tien Metro line about to be completed to help people move from District 9 to the city center in only 15 – 20 minutes.

Due to the advantages of location and transportation, plus spacious land bank, District 9 along with District 2 and Thu Duc are oriented to become a future creative city with the ambition to be the “silicon valley”. first of Vietnam. The above development directions are also leverage to help this area attract strong investment.

Mr. Terry C. (Japanese nationality) said he had visited Vietnam three times, during this trip, his purpose was to explore the market, help the company expand operations into Vietnam to reduce spending. Rising labor costs from China.

Mr. Terry said: “During my stay in Vietnam, I learned a lot about the real estate market here. Besides looking for a suitable office location, I am also considering investment plans. to District 9 because the real estate here is constantly increasing in value. ”

According to observers, the District 9 becoming a “Creative City” also means that it will attract a large number of experts, intellectuals, young families to rent or buy houses to live permanently, forming a potential community, which has led to the development of a range of other services and industries.

Mr. Terry C. (Japanese nationality) considers District 9 as the ideal place to work and live

Understanding this, many real estate investors have quickly welcomed opportunities, invested in developing unique projects, promising to contribute to making District 9 real estate more attractive and vibrant.

According to some recent leaked information, Vingroup will soon officially launch the Vinhomes branded mega city project in the heart of District 9 in Q2 / 2019.

This event promises to make a big impression on the market, in the context that Ho Chi Minh City has been in short supply since mid-2018.

Source: nhadattuoitre