Although under great pressure from Covid-19, Vietnam’s foreign investment capital (FDI) continued to grow in the first 6 months of 2022 and real estate took second place. This shows that the real estate market in Vietnam is growing steadily and is still an attractive piece of cake for foreign companies.
This is a statement from Savills Vietnam in the latest report on the prospect of attracting foreign direct investment in the real estate sector.
Mr. Do Duy Thanh, Manager of Savill’s Hanoi Investment Advisory Department, considered that real estate has always been an important economic sector with stable and sustainable growth in Vietnam. Not only industrial real estate, but also homes, resorts, healthcare… are also magnets to attract foreign investors.
The real estate market in Vietnam is still attractive for the influx of FDI. Photo: VD
With favorable investment conditions, Savills believes the real estate market will inevitably become an attractive piece of cake for foreign companies. Of which two-thirds of FDI participating in the real estate sector in Vietnam are large-scale enterprises with increasingly diversified and better quality forms, especially industrial real estate attracts more and more capital.
According to this unit, the increasing number of middle and upper class customers, coupled with the rapid urbanization process in major cities, will continue to drive housing demand in Vietnam. In addition, despite being the hardest hit by the pandemic, resort real estate is still a segment where savvy investors can look for opportunities to enter the market, especially in Phu Quoc, Nha Trang, Phan Thiet…
In addition, the emergence of the healthcare real estate segment, which is still very new in Vietnam, will also be a great opportunity for investors with vision and the ability to seize opportunities.
In addition, foreign investors also pay special attention to residential and office real estate. This trend stems from an increasing demand from customers, while the price is still reasonable when comparing major cities like Hanoi and Ho Chi Minh City with neighboring markets like Singapore, Shanghai, Shenzhen…
In addition to opportunities, Savills also pointed out that the influx of FDI into the real estate market also faces many difficulties and challenges. In particular, the amount of FDI registered in the market year after year was not actually paid out as promised, due to many factors related to the legal system surrounding the project development process. This leads to a delay in implementation. A new type of real estate, for example, is attracting a lot of investor attention, such as condotels and officetels, but the legal regulation for this type of real estate has not yet been fully and timely issued.
In order to solve the above problems, many foreign investors entering the market will often want to cooperate in the form of a joint venture with Vietnamese investors for assistance in the process of legal process for project development. But the two companies do not always have a common voice.
This unit said that a more macro problem is that good quality projects are gradually becoming scarcer and less public at the moment. Therefore, ensuring the legal process and progress during project development should be a top priority.
As far as the management office is concerned, the legal requirements for new types of real estate should be reviewed, and foreign investment policy should also be timely adapted and kept up to date with the fluctuations of the global economy. In addition, the quality of traffic and infrastructure must also be aimed at improvement.
@ Saigon Times
