The registered Foreign Direct Investment (FDI) capital into Vietnam has seen a significant increase in the first month of 2024, with a total of 1.27 billion USD flowing into the real estate sector, doubling the figure from the same period last year.
Foreign tycoons registered to pour 1.27 billion USD into Vietnamese real estate in January. Photo: Quynh Danh.
According to the Foreign Investment Agency of the Ministry of Planning and Investment, as of January 20, the total newly registered, adjusted, and contributed capital for purchasing shares or contributing capital to foreign-invested projects reached 2.36 billion USD, marking a growth of over 40% compared to the same period last year. Despite a decrease in adjusted and contributed capital for purchasing shares, the newly registered capital continued to show strong growth.
Specifically, 190 new projects were granted licenses with a registered capital of over 2 billion USD, a 24% increase in the number of projects and a 67% increase in registered capital compared to the same period in 2023.
Simultaneously, there were 75 projects registering capital adjustment, with a total additional registered capital of over 235 million USD, a 23% decrease compared to the same period.
When considering both newly registered capital and adjusted capital of projects licensed in previous years, the foreign investment in real estate business activities reached 1.25 billion USD, accounting for 55.7% of the total newly registered capital and showing an increase.
In terms of capital contribution, the whole country had 174 instances of foreign investors contributing capital to purchase shares, with a total value of over 116 million USD, a 33% decrease compared to the same period. In this, real estate business activities reached 22 million USD, representing 19% of the capital contribution value.
Therefore, in the first month of 2024, the total foreign investment registered in the real estate business sector in Vietnam reached over 1.27 billion USD, doubling that of January 2023.
According to the Foreign Investment Agency, in January 2024, Vietnam attracted investment from 6 countries. Among them, the United States led with 5.9 million USD, accounting for 36.1% of the total investment; Germany with 5.4 million USD, accounting for 33.2%; Laos with 4.2 million USD, accounting for 26.2%.
Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, stated that Vietnam has become the focus of a significant amount of foreign direct investment.
According to her, in the current global economic context with various fluctuations, a newly emerging country like Vietnam has become a potential market attracting investment. Especially, attractive profit rates in a market are crucial factors in the investment decisions of foreign investors.
Experts at Cushman & Wakefield believe that this is still an opportune time for foreign businesses to strengthen acquisition or collaboration activities, especially for those with strong financial capabilities.
“A large amount of capital from foreign investors will be completed and poured into the Vietnamese real estate market during the period 2024-2026. Many transactions are already in the negotiation process and are quite positive,” Ms. Trang predicted.
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Source: Vietnam Insider