My Dinh II residential area in Nam Tu Liem district, Hanoi (Photo: VNA)
Hanoi (VNA) – The growing foreign direct investment(FDI) in Vietnamese property has shown investors’ greater expectations of themarket, insiders said.
Foreign investors poured 20.33 billion USD intoVietnam between January and June, up 5.7 percent from a year earlier. Realestate received 5.54 billion USD or 27.2 percent of the capital, becoming thesecond biggest sector in FDI attraction, according to the Foreign InvestmentAgency under the Ministry of Planning and Investment.
Property experts said the FDI growth indicatespositive signs in the market. About a decade ago, although the FDI capitalchannelled into real estate was also considerable, it accounted for only some10 percent of the total in Vietnam.
The rise of foreign investment is expected tohelp standardise the property market and improve the standing of Vietnamesereal estate. In the short term, property supply will become more abundant anddiverse.
Notably, in the first half of 2018, the HanoiPeople’s Committee granted an investment certificate for Japan’s Sumitomo Groupand its Vietnamese partners to carry out a smart city building project worth4.13 billion USD in Dong Anh district. The Republic of Korea’s Lotte Group alsopledged to invest 600 million USD in a shopping, office and hotel complex inHanoi.
Nguyen Hoai An, Director of the CBRE HanoiBranch, said the higher FDI poured into real estate proves that investors are particularlyinterested in the Vietnamese market, which has been much more open toforeigners in recent years.
The rapid increase of foreign visitors to thecountry has also helped its property become more popular. Particularly, throughinitial public offerings and bond auctions, Vietnam has appealed more attentionfrom international investors.
An said that global investors began payingattention to Vietnamese property about 10 years ago, but they mainly pouredcapital into casino projects then.
Now, they have switched their focus to housingand consumption property, which is the long-term demand in the market. This isalso a difference in the flow of FDI into Vietnamese real estate in 2018, sheadded.-VNA
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My Dinh II residential area in Nam Tu Liem district, Hanoi (Photo: VNA) 
