Property development sector set for influx of foreign cash
|Last year, foreign direct investments (FDIs) had recovered to gain 54 per cent year-on-year to reach US$21.6 billion, of which $1 billion was from 25 real estate industry projects.— File Photo
HA NOI (VNS)— Viet Nam's real estate industry is expected to attract more foreign investors, even though the domestic economy is forecast to still face challenges this year, according to experts.
Last year, foreign direct investments (FDIs) had recovered to gain 54 per cent year-on-year to reach US$21.6 billion, of which $1 billion was from 25 real estate industry projects.
In January this year, the domestic property market continued its trend of attracting foreign investors and experienced the second-largest FDI of $176 million, which accounted for 45 per cent of the total flow of FDIs to the country.
The nation expects to benefit from many projects worth billions of US dollars this year because at the end of last year, many large groups in the world said they will invest in the property development in Viet Nam, reported Dien dan Dau tu (BizLIVE) online newspaper.
For instance, the Texhong Group from China planned to build an industrial zone in northeastern Quang Ninh Province with a total registered capital of $950 million. Quang Ninh also expects the Amata Group from Thailand to develop a high-tech urban region with a total estimated capital of $2 billion.
The US Rose Rock Group, which specialises in the management, investment and development of luxury properties, has signed a memorandum of understanding to help build a tourism and resort complex in Vung Ro Gulf, with potential capital of $2.5 billion.
In addition, economists stated that Viet Nam can benefit from foreign investors who are moving away from China to countries with a stable government and economy, including Viet Nam, a neighbouring country of China.
The CBRE, one of the foreign property service providers in Viet Nam, noted that FDIs from China will be the largest source of capital for property transactions in Viet Nam this year.
Savills Viet Nam, aother foreign property service provider, also said the company had received many orders from foreign investors in China to invest in property projects in Viet Nam.
Deputy Minister of Construction Nguyen Tran Nam remarked that this year the trend of selling a part or whole property projects will be boosted to attract more investments to the property industry, which is in need of more investments to recover from the prolonged crisis.
Moreover, a part of the stable remittance every year could be put into property projects this year. According to a State Bank of Viet Nam report, the remittances to the country last year reached $11 billion, a marginal increase from 2012. — VNS