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The main reason for the strong growth of FDI in the real estate market Vietnam.

Monday - 25/06/2018 01:14
According to HoREA, FDI, one of the measures of integration of the economy, the real estate market. In particular, the real estate market often occupies the third position in attracting FDI capital, at the same time, adding important capital to business in the trend of commercial banks are gradually limited real estate credit .
According to the Hochiminh City Real Estate Association's five-month report, foreign investment in real estate has been on the rise in recent years. Specifically, in HCMC, in 2015, reached 1.497 billion (accounting for 53.3%); in 2016, there is a decline, only reached $ 1 billion; in 2017, strongly up to USD 1.01 billion; in the first five months of 2018, reaching $ 216.3 million.
 
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Real Estate Market - Image: Collection


By 2017, the city has 7,372 valid FDI projects with a total investment of nearly $ 45 billion. FDI inflows to the real estate market are from Japan, Korea, Singapore, Hong Kong, Taiwan, the United States and China.

Typical in Ho Chi Minh City is Phu My Hung Joint Venture Company; Nam Long cooperates with Hankyu Hanshin Toho Group, and Nishi Nippon Railroad (Japan); Tien Phuoc Company, Tran Thai in cooperation with Keppel Land (Singapore); Tien Phat cooperates with Sanyo Home (Japan); An Gia Company cooperated with Creed Group (Japan); Phuc Khang cooperates with Mitsubishi Corporation (Japan), and Genesis Global Capital (Singapore); CII cooperates with Hongkong Land; Son Kim Land in collaboration with Hankyu Hanshin; Capitaland, VinaCapital, Lotte, Dragon Capital ...

In particular, the remittance source sent to the country annually is at about $ 10 billion, of which, HCMC accounts for about 50%, and about 21% of investment in real estate. In 2017, there were 11 real estate companies on the stock exchange. Over the first 5 months of 2018, there were 4 companies listed as Vinhomes of Vingroup, Net Land, Van Phu Invest, Dat Phuong. Expected from now until the end of the year will be more real estate companies on the stock market such as Hung Thinh Construction, Cenland, MBland, Hai Phat ... This is a suitable and effective direction to affirm the prestige trademark. To facilitate the mobilization of capital sources at home and abroad, to gradually reduce the dependence on bank credit capital.

According to the HoREA report, there are two main reasons for the strong growth of FDI in the real estate market.

First, the state has changed policies and laws on investment, real estate business, housing; has allowed foreign investors to invest in real estate business similar to domestic investors;

Secondly, our country maintains stable political and economic growth, many Vietnamese enterprises have the capacity and prestige of the brand, especially the middle class is growing strongly, is expected to account for 50% population over the next 10 years. These factors make the property market more attractive and accessible

Source: Cophieuviet.com

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