Foreign direct investment (FDI) flows into Vietnam’s real estate sector hit US$345.5 million in February, accounting for 10.1% in total FDI poured into the country, increasing by 12 times year-on-year.
Real estate ranked first among sectors in FDI attraction during the period, with most projects developing industrial park (IP) infrastructure.
An IP project invested by the Vietnam Singapore IP Joint Venture Co., Ltd (VSIP) which covers 1,000 ha in the southern province of Binh Duong, was the biggest among the 11 FDI property projects in Vietnam in the period.
With the project, the third of its kind in Binh Duong, VSIP lifted its total number of IP projects in the country to seven.
Vietnam has attracted considerable FDI in IP infrastructure development and logistics from late 2016 thanks to improved economic growth. The country is said to be one of the most promising markets in Asia Pacific.
Other noteworthy FDI projects in 2016 included a complex of seaports and IPs worth US$315.4 million in the Mac Dynasty Lagoon area, the northern coastal province of Quang Ninh, and an IP project with total capital of US$1 billion by a Thai firm in the central province of Nghe An.
As of December 31, 2016, Vietnam was home to 324 IPs, with 220 operational.
According to Stephen Wyatt, General Director of the Jones Lang Lasalle Vietnam, 2017 will be a big year for Vietnam’s property market.
Vietnam’s property market will be able to witness recoveries in the year thanks to the increase in demand for apartment, office leasing space, hotel, and IP, he said.VNA