Real estate holds 2nd spot in FDI

October 31, 2022 | 18:41
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Although the domestic real estate market has faced certain difficulties in recent years, foreign investors have continuously poured capital into the field.

In the first 10 months of 2022, foreign investors poured $3.87 billion into the real estate sector, bringing it to second position in total foreign direct investment (FDI) in Vietnam.

According to the Ministry of Planning and Investment (MPI), the total FDI newly registered in Vietnam reached more than $22.46 billion, equaling 94.6 per cent over the same period last year.

Real estate holds 2nd spot in FDI
Real estate ranks 2nd in the list of industries attracting FDI in the first 10 months of 2022. Photo: Le Toan

Later this year, Gamuda Land will announce its new project Artisan Park. Strategically located in a prime area right next to the administrative centre of Binh Duong province, surrounded by international-standard educational, medical, sports and commercial facilities, the complex will have 349 high-end commercial townhouses.

Entering the Vietnamese market in 2007, Gamuda Land has created two world-class urban areas: Gamuda City, covering 274 hectares in Hoang Mai district in Hanoi, and Celadon City, with 82ha, in Tan Phu district of Ho Chi Minh City.

Meanwhile, Coteccons, the largest shareholder of Kazakhstan’s Kusto Group in October this year announced that it teamed up with various partners to develop The Emerald 68 Luxury Apartment Project in Binh Duong New City, costing more than $86.9 million.

In July, CapitaLand Development acquired a potential land fund to build a complex in Ho Chi Minh City, estimated at about $720 million. The project has an area of ​​about eight hectares and is expected to provide 1,100 luxury apartments and shophouses to meet the increasing settlement needs of Thu Duc city, which is developed to become an economic and technological centre. The deal is expected to be completed in the fourth quarter of 2023, and is scheduled to be completed in 2027.

The highlight is the investment of $900 million by Lotte E&C to develop a smart urban area "Lotte Eco Smart City Thu Thiem", to add another landmark construction of Korean investors in the Vietnam real estate market.

YSL Group is also implementing an industrial land project with nearly 300ha in Nam Binh Xuyen in Vinh Phuc province. The project is built using green development and high technology, possessing strict requirements on equipment, advanced science and technology.

David Jackson, CEO of Colliers (Vietnam), said Vietnam's economy was demonstrating impressive growth, with a GDP increase of 8.83 per cent in the first nine months of the year, the highest increase in the last decade.

Meanwhile, Winnie Lam, COO of Colliers, said that she had seen much interest among investors almost from all jurisdictions. “Industrial real estate tops the list, and the world is very much in catch-up mode after the temporary stay of most investments in the past two years. All other segments, office, retail, residential and hospitality properties, are at their most active since 2019,” said Lam.

"The recent shackles on the country may put investor confidence on the wane for some foreseeable months into 2023. However, this will be remedied by a more transparent, fair and healthy market in the long run. Smart investors, therefore, shall keep their eyes open to seize rising opportunities to participate in the market," she said.

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Real estate sector attracted 3.5 billion USD in foreign direct investment (FDI) the first nine months of this year, accounting for mearly 19 percent of total FDI that the country lured in the period, coming second among sectors in terms of FDI attraction.

By Bich Ngoc

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