HÀ NỘI – The property market of Việt Nam is attractive to foreign investments due to the country’s rapid ubanisation, open policies and improved investment climate, experts said.

Foreign Investment Agency statistics show that nearly US$300 million worth of foreign direct investment (FDI) was poured into the property market in January, accounting for roughly 20 per cent of the total FDI attraction.

Nguyễn Mại, chairman of the Việt Nam Association of Foreign Investment Enterprises, said that the Việt Nam real estate market appeals to foreign investors due to two factors:

The first one is the growing middle class, which is expected to reach 33 million by 2020 from 12 million in 2012. A series of policies targeted to improve the investment climate and allowing foreigners to own real estate assets in Việt Nam also consolidated confidence, Mại said, adding that investments in property assets promises higher returns in Việt Nam than in many other countries.

Mại said that the low- and middle- income housing market is catching the eyes of foreign investors due to land use incentives and credit. “This is a good sign,” he said.

According to Phan Hữu Thắng, former Director the Foreign Investment Agency, many foreign investors and investment funds are eyeing opportunities in the realty market of the country of 90 million population.

“Opening-up policies together with rapid ubanisation are turning Việt Nam’s realty market into a destination,” Thắng said.

However, Thắng noted that attention must be paid to attracting investors of adequate capacity to implement projects, calling this essential to prevent stagnation, which has caused significant losses.

In 2016, foreign investors poured a total of $1.3 billion into the realty market. - VNS