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Real estate sector draws foreign investors

Update: November, 08/2014 - 09:29
According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), in the first 10 months of 2014, the real estate sector attracted foreign direct investments (FDI) worth US$1.22 billion or 8.9 per cent of the total amount of FDI in Viet Nam. — Photo vietstock.vn

HA NOI (VNS)— The domestic property market continues to lure foreign investors even though it has yet to fully recover, experts say.

According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), in the first 10 months of 2014, the real estate sector attracted foreign direct investments (FDI) worth US$1.22 billion or 8.9 per cent of the total amount of FDI in Viet Nam.

The sector has the second largest FDI volume in the first 10 months after the processing and manufacturing industry, the agency revealed.

In fact, many existing FDI golf resorts and large urban regional projects that were granted licences with large capital in previous years have yet to be built or have cancelled construction because of numerous difficulties in disbursing investment capital, reported the Sai Gon Dau Tu TaiChinh newspaper.

FDI had yet to be channelled to affordable social housing projects that have high demand in the domestic market. Meanwhile, agriculture, a key economic sector, accounted for 0.5 per cent of total national FDI capital in the past three years, the agency noted.

Phan Huu Thang, former FIA director, said the domestic property market had yet to recover, but foreign investors had found opportunities during difficult times because the property market continued to develop.

Foreign investors placed their money in the domestic property market in preparation for its future recovery, Thang observed.

Pham Sy Liem, deputy chairman of the Viet Nam Federation of Civil Engineering Association, said the state should have a mechanism for granting and revoking investment licenses to ensure efficient property project management.

The State should craft and implement policies urging FDI to co-ordinate whenever investing in capital in sectors, he added.

Hoang Xuan Hoa of the Party Central Committee's Economic Commission said the State should improve FDI quality by refusing to grant investment licenses to projects using old technology and with a negative environmental impact.

For the property sector, the State should encourage investment in projects on urban development, technological infrastructure, social housing development and apartments for low-income citizens, Hoa added. — VNS

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