Viet Nam's real estate remains attractive to foreign capital flows
VGP – Positive indicators in terms of economic growth and COVID-19 resilience have made the image of Viet Nam more and more attractive in the eyes of foreign investors.
Data from the General Statistics Office showed that in the first quarter of 2021, Viet Nam’s foreign direct investment (FDI) disbursement was estimated at US$4.1 billion, up 6.5% over the same period last year.
Of the figure, real estate business reported US$597.7 million, accounting for 14.6%. In Ho Chi Minh City alone, seven new FDI projects were licensed with a registered capital of US$117.4 million.
In 2020, FDI pledges were made to 19 industries and fields in the Southeast Asian country, in which real estate came third with a registered value of nearly US$4.2 billion, higher than the 2019 figure of US$3.88 billion.
According to experts, Viet Nam’s real estate market has been attractive to foreign investors thanks to the nation’s good pandemic control, political stability and stable macroeconomic growth.
“Viet Nam will become a new destination replacing many global real estate supply sources,” said Dr. Le Duy Binh, Economic Expert and Managing Director of Economica Viet Nam at a recent seminar.
In the context of the COVID-19 pandemic affecting all areas of life, Viet Nam is one of the few countries that still maintains positive growth and meets all the factors to accelerate when the disease is under control. This is a great opportunity for Viet Nam’s real estate market when it manages to clear supply sources and attract foreign investment.
Assoc. Prof. Dr. Tran Kim Chung, Deputy Director of the Central Institute for Economic Management (CIEM), said that Viet Nam has applied sound policies to cope with the pandemic and manage economic activities over the past year, bringing about positive results.
Viet Nam is being located in the growth zone of the world with a stable economy. The Government’s determination to disburse investment capital is a huge boost to economic development.
Extremely favorable international relations with free trade agreements (FTAs) have affirmed Viet Nam’s position from being a latecomer in the WTO to becoming a frontrunner imposing the game for the new world. Export-import and production results are very positive.
“These are very favorable conditions for economic development in general and real estate in particular in 2021,” Chung said, adding that the health of Viet Nam’s economy and real estate market is being rated between A and A+.