Hanoi (VNA) – The Vietnamese realestate market has remained attractive to foreign investors and investment fundsdespite difficulties countering domestic firms, according to insiders.

The 2023 Asia-PacificInvestor Intentions Survey released recently by CBRE Vietnam showed that Ho Chi Minh Cityand Hanoi are among top 10 most attractive destinations for trans-border investment.Particularly, for the first time, Ho Chi Minh City ranked third in the list, even aboveAustralia.

Vietnam drew greatest attention from investorsfrom Asian countries and territories, including Hong Kong, Singapore, China,the Republic of Korea and Japan.

With a forecast urbanisation rate of 42% in2025, Vietnam has high potential in real estate market development. With morepeople rising to the middle class, the country has become a magnet for realestate investment.

At the beginning of 2023, Singaporean firmsconducted a number of large-scale deals in Vietnam.

Keppel Land, a real estate developer thatis running more than 20 projects worth 3.5 billion USD around the world, signeda memorandum of understanding with Khang Dien Group of Vietnam to cooperate in residentialarea building and sustainable urban development projects in Ho Chi Minh City inFebruary.

Keppel Land CEO Louis Lim said that thefirm is keen on strengthening its presence in Vietnam, one of its major marketswith great long-term potential.

Meanwhile, Sembcorp Development has alsoreached a deal with Becamex IDC on partnership in developing five green, smartand sustainable industrial parks in Vietnam in the next three years with totalinvestment of about 1 billion USD. These industrial parks will be built to meetgreen, smart and sustainable criteria, using high technologies in management.

The report “VietnamReal Estate: Perspectives from China and Southeast Asian Countries” byPropertyGuru Group said Vietnam’s open economic policy and integration into globalsupply chains have made growth possible. Therefore, a resilient supply chain iskey to Vietnam’s economic strength and increasing the attractiveness of realestate to foreign investors.

If Vietnam’s transportinfrastructure of seaports, highways, high-speed railways and airports isexpanded and completed, real estate in Vietnam will be a more attractivedestination for foreign capital, both direct and indirect investment, thereport said.

According to the Foreign InvestmentDepartment under the Ministry of Industry and Trade, the real estate sectordrew the second largest amount of foreign direct investment among all sectorsin 2022, attracting more than 4.45 billion USD, accounting for 16.1% of thecountry’s total./.