In the first five months of this year, foreign investors injected nearly 1.98 billion USD into the real estate business, marking a staggering 70% increase compared to the same period last year.
Data released by the Ministry of Planning and Investment on May 27 underscores the continued robustness of foreign direct investment (FDI) in Vietnam. Over the five-month period, the total registered capital reached 11 billion USD, reflecting a 2% growth from the previous year. Notably, newly registered capital surged by 50%, reaching an impressive 7.94 billion USD. The number of new projects also saw a significant uptick, totaling nearly 1,230.
Moreover, disbursed capital maintained a positive trajectory, exceeding 8.25 billion USD during these five months—an impressive 7.8% increase year-on-year.
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Foreign investors have diversified their interests across 17 out of 21 national economic sectors. Leading the pack is the processing and manufacturing industry, which attracted over 7.43 billion USD—constituting 67.1% of the total registered investment capital and representing an 11.9% growth over the same period.
The real estate sector secured the second spot, signaling a positive trend with an influx of nearly 1.98 billion USD. This accounts for 18% of the total registered investment capital and represents a remarkable 70% surge compared to the corresponding period in 2023. Other notable industries include wholesale and retail, as well as transportation and warehousing.
The surge in foreign capital into real estate aligns with the market’s evident signs of improvement. Experts predict that the real estate landscape in 2024-2025will continue to thrive, especially as inflation remains under control and interest rates remain low.
Additionally, legal challenges are gradually being addressed. The government’s proposal to expedite the implementation of the Law on Land, Housing, and Real Estate Business by five months promises further stability. Simultaneously, public investment and infrastructure development initiatives are poised to propel the real estate market forward.
During this period, several large-scale projects in energy (including battery production, photovoltaic cells, and silicon bars), component manufacturing, electronic products, and high-value-added goods have been newly invested in and launched, contributing to the capital expansion.
In terms of investment partners, 78 countries and territories have participated in Vietnam’s growth story during the first five months of the year. Singaporeremains at the forefront, with a total investment capital exceeding 3.25 billion USD—a remarkable 28.2% increase year-on-year.
The top investment partners during this period are predominantly traditional allies of Vietnam from the Asian region. The combined markets of Singapore, Hong Kong, Japan, mainland China, and Korea account for 73% of new investment projects and a substantial 74% of the country’s total registered investment capital.
The Foreign Investment Department highlights that foreign capital continues to concentrate in localities with strategic advantages, including robust infrastructure, skilled human resources, and streamlined administrative procedures. Notable cities such as Hanoi, Ho Chi Minh City, Bac Giang, Quang Ninh, and Hai Phong remain focal points. In fact, the top 10 localities collectively host nearly 75% of new projects and contribute significantly to the nationwide investment capital.
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Source: Vietnam Insider