Vietnams real estate still a magnet to foreign investors

HANOI, 14th July, 2022 (WAM) -- Foreign direct investment (FDI) in Vietnam continuously increased in the first half of this year, especially in the real estate sector that attracted US$3.15 billion, making up 22.5 percent of the total registered capital.

The Vietnam News Agency (VNA), quoted property consultant Savills Vietnam as saying that two-thirds of the enterprises engaging in the Vietnamese real estate are large-scale, noting that the FDI flow into Vietnam is expected to further rise in the time ahead as foreign firms are confident in the market.

Vietnam is one of the best performers in the COVID-19 fight with a high vaccination coverage, and has emerged as a growing market with young, dynamic workforce, making the country competitive in FDI attraction.

According to the Ministry of Planning and Investment (MPI), as of 20th June, foreign investors have poured US$15.27 billion of investment in Vietnam, equivalent to 97.4% of the amount recorded in the same period last year.

Meanwhile, the disbursement of FDI in the period rose 6.8% year on year to US$9.24 billion.

Among the 18 sectors attracting FDI, manufacturing-processing lured the highest amount at US$6.98 billion, accounting for 45.7% of the total investment, followed by power production and distribution with US$5.34 billion, making up nearly 35% of the total investment.

Singapore leads the 80 countries and territories investing in Vietnam with a total investment of US$5.64 billion, followed by Japan with US$2.44 billion, and the Republic of Korea with US$2.05 billion.

As of 20th June, the country had hosted 33,787 FDI projects worth US$397.89 billion totally, of which US$241.1 billion or 60% had been disbursed.