|A drawing of Sora Garden 1 in Binh Duong Province. Becamex Tokyu began work on the US$1.2 billion project in March this year, marking the first time a Japanese firm has been involved in a Vietnamese urban development. — Photo vov.vn
HA NOI (VNS)— Foreign direct investment (FDI) into the country's real estate sector ranked second in the first quarter of 2014, proving that foreign investors have developed renewed interest in the property market.
According to statistics revealed by the Ministry of Planning and Investment's Foreign Investment Agency, the nation approved five FDI projects in the sector with a total registered capital amounting to over US$288 million. The figure constituted 8.6 per cent of the total US$2 billion pledged FDI capital during the period.
Of note, Hong Kong investor, SunWah Viet Nam Estate Limited Company invested over US$200 million in the condo building project in HCM City, thereby boosting investment capital in the sector. This has been the largest FDI project in the sector since last year.
Last year, even though there were no major property projects, yet the total FDI in the sector reached US$900 million.
During the 2009-2013 period, the country welcomed Japanese Tokyu Garden City project in the southern Binh Duong Province with a total investment capital of US$1.2 billion, which was granted licence in 2012.
Experts have forecast that the market will receive more large-scale FDI property projects this year.
Timothy Horton, the general director of the property advisory firm, Cushman &Wakefield Viet Nam informed Viet Nam Investment Review that international investors who had been closely tracking the country's market in 2008-2009 had made a comeback. Asian investors, such as Japan, China, Taiwan, and Hong Kong have shown keen interest in the market.
He noted that the company had been working closely with investors and businesses from China as they considered real estate prices in Viet Nam to be cheaper than that in China.
Sharing the same viewpoint, Troy Griiffiths, the deputy general director of Savills Viet Nam, remarked that from the beginning of the year, the company has received a large number of orders from Chinese businesses for buying real estate projects in Viet Nam.
Sharing the ideas, Marc Townsend, CBRE's general director, stated that foreign investors from Japan and Russia contributed to the country's property market in 2013. This year, Chinese investors had penetrated the market.
He explained that the property market in Viet Nam has certain advantages in comparison to other countries in the region, thereby offering price advantage to international investors.
He added that foreign investors were keen on investing in hotels, resorts, and entertainment areas in Viet Nam. — VNS