FDI continues to flow strongly into real estate

DNHN - Among investment sectors, real estate continues to attract significant FDI. This raises the question of why FDI continues to pour into this sector.

In the first half of this year, real estate remained an attractive destination for strong FDI inflows. According to a report from the Ministry of Construction, as of June 20, the amount of FDI poured into this sector had reached USD 1.89 billion, ranking second in total new registered capital.

Simultaneously, the real estate market in the first six months of the year also witnessed a surge in activity. Alongside the completion of 18 commercial housing projects, 23 new projects were licensed, and 984 projects were under implementation, opening new prospects for the sustainable development of this market.

One of the key factors driving the attractiveness of Vietnamese real estate is the impressive economic growth rate. In recent years, Vietnam has achieved stable and high economic growth, with many industries developing strongly. This creates an increasing demand for housing, offices, shopping centers, and other real estate projects.

Additionally, favorable policies and regulations have been adopted by the government to attract FDI into the real estate sector. The government has implemented many incentive policies such as tax exemptions, simplification of investment procedures, and provision of land for real estate projects. This helps reduce investment risks and creates favorable conditions for foreign investors.

Moreover, Vietnam has a large population and is experiencing rapid urbanization. The high demand for housing and urban infrastructure creates significant opportunities for real estate projects. Population growth and urbanization create a potential market for foreign investors interested in Vietnamese real estate.

Furthermore, the signing of free trade agreements has facilitated investment in real estate. By participating in agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), Vietnam has expanded export markets and land ownership rights for foreign investors.

In fact, strong FDI inflows into Vietnam's real estate sector are also driven by interest in liquidity and potential price appreciation of real estate. In some developed markets, investors face difficulties in finding high-liquidity investment opportunities with price appreciation potential. Meanwhile, Vietnamese real estate is still considered a market with growth potential and reliable liquidity. This attracts foreign investors seeking stable returns and long-term price appreciation.

Finally, the development of technology and infrastructure also plays an important role in attracting FDI into real estate. Advances in information and telecommunications technology have provided advanced digital infrastructure for real estate projects. Simultaneously, transportation and other technical infrastructure projects are being developed to facilitate movement and the development of new areas.

In summary, FDI continues to flow strongly into Vietnam's real estate sector due to economic growth, favorable policies, market demand, trade agreements, and technological development. These are the key factors that have created an attractive and stable investment environment for foreign investors. In the future, continuing to push policy reforms and sustainable development will help maintain FDI attraction into the real estate sector, while contributing positively to Vietnam's economic development.

Nghe Nhan