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Roundup: Vietnam eyes foreign investment inflow into real estate in 2015

Xinhua, February 6, 2015 Adjust font size:

Thanks to various favorable conditions for the development of real estate sector in Vietnam, many experts agreed that in 2015, the sector will be an attractive investment channel among foreign investors.

Su Ngoc Khuong, a local expert was quoted by Bao Do Thi ( Urbanness News) online newspaper on Friday as saying that the country's real estate market has been seen as reaching its bottom over past time. This also presents an investment opportunity for foreign investors to join Vietnam's real estate market, bringing the remarkable increase in FDI into the sector in Vietnam in 2014.

Real estate ranked second among sectors that lured most foreign direct investment (FDI) after industrial manufacturing and processing last year, according to statistics released late December 2014 by Foreign Investment Agency (FIA) under Vietnam's Ministry of Planning and Investment.

A total of 35 FDI projects worth 2.187 billion U.S. dollars were newly licensed in real estate sector while some 357.4 million U.S. dollars was added to four real estate projects in 2014.

The sector attracted some 2.544 billion U.S. dollars, accounting for 12.6 percent of the country's total FDI in 2014.

In 2013, as much as 951 million U.S. dollars was registered to 25 newly licensed and existing projects, according to FIA.

Echoing Khuong, other experts believed that during 2015, Vietnam will witness a surge of FDI inflow into real estate as the market has been on recovery trend with good growth.

More opportunities will open as Vietnam joins Trans-Pacific Partnership as well as other free trade agreements in the coming time, assessed insiders.

In addition, amended laws on housing and real estate business have loosened regulations, creating more opportunities for foreigners to participate in Vietnam's real estate market.

Nguyen Huu Cuong, chairman of Vietnam's capital Hanoi Real Estate Club emphasized that the amended laws allowed more foreigners to buy and own houses in Vietnam.

This provides a chance for flourishing investment of foreign investors into Vietnam's real estate sector in 2015, Cuong added.

Moreover, real estate is another way to absorb large amount of remittance into Vietnam. Among 10-13 billion U.S. dollars of remittance of Vietnam annually, nearly 20 percent pours into real estate, said the expert.

Nguyen Hong Son, head of valuation and financial advisory of a real estate company forecast that greater capital inflow from both domestic and foreign investors will run into real estate sector in 2015.

According to statistics released by Vietnam's Ministry of Construction in mid-January 2015, the country's real estate inventories saw a decrease of 21.8 percent in 2014 compared to that of the previous year with positive recovery over 2013.

In 2014, the country's real estate sector witnessed uptrend in number of transaction and lower inventories, said the ministry.

As of Dec. 15, 2014, the inventories of real estate market stayed at some 73.889 trillion Vietnamese dong (around 3.46 billion U.S. dollars). Endi