Over the past 11 months, investment in real estate market in Ho Chi Minh City has reached over 984 million USD, tripling compared to the same period of last year and accounted for 50.8% of total foreign direct investment (FDI) in the area.
Speaking numbers
According to Mr. Su Ngoc Anh, Director of Ho Chi Minh City Department of Planning and Investment, in the past 11 months, Ho Chi Minh City has granted certificates of investment registration for 757 foreign investment projects in the city, with a total investment of $ 1.94 billion. There are 203 projects adjusted for capital increase, with a total investment of $ 0.9 billion. In addition, the City has also approved 2,031 cases of foreign investors carrying out procedures to contribute capital, purchase shares, buy back capital contributions from domestic enterprises, with registered capital of VND2.64 billion USD.
The total capital attracted in the form of certificates of registration of investment and capital attraction through the form of capital contribution, purchase of shares of domestic enterprises in the first 11 months of HCM City reached 5.57 billion USD, up 96.6% over the same period in 2016.
In particular, the sector attracting the most FDI is real estate, with $ 984.4 million, increases 3 times as much as over the same period last year and accounting for 50.8% of total FDI. FDI inflows were highest in South Korea ($ 1.03 billion); followed by the United States ($ 253.04 million), Japan ($ 141.92 million) ...
"In the first 11 months of 2016, FDI inflows into the real estate sector in Ho Chi Minh City reached only 328.1 million USD, 11 months this year, FDI in this field has tripled and this is the highest increase in 10 years, "said Ngoc Anh said.
FDI in real estate sector increased sharply due to attracting many big projects in the year. This is the deal of Nishi Nippon and Hankyu (Japan) in cooperation with Nam Long to implement the project of Mizuki Park residential area with the area of 26 ha in Binh Chanh district with total investment of 351 million USD. Then, Son Kim Investment and Development Group (Son Kim Land) successfully called 100 million USD from Japanese investors to develop real estate projects in Ho Chi Minh City. Keppel Company (Singapore) continues to pour capital into developing projects in District 7, District 2.
In addition, Maeda Joint Venture (a company from Japan) and Thien Duc Company cooperate to develop Waterina Project in District 2.
Similarly, Mitsubishi Corporation signed with Bitexco to establish a joint venture to develop a housing project with a total investment of $ 290 million. Another giant is Kajima (also of Japan) and Indochina Capital has launched a joint venture with a capital of US $ 1 billion to invest in the real estate market in Vietnam in the next 10 years.
FDI attraction in 2018
Marc Townsend, Managing Director of CBRE Vietnam, said that the interest of foreign investors in the real estate market in Ho Chi Minh City is very good. Very big. The preference of these investors is to seek opportunities to develop housing projects that are well connected to the city center or those that have been put into operation, which can bring about stable cash flow.
"The majority of foreign investors do not make the decision quickly, but spend a lot of time researching and researching the market before deciding on investment. Many investors said that from 2017 onwards is a good time to invest, so have done big deals as last, "said Marc Townsend.
According to CBRE, the real estate market in HCM City is very attractive to foreign investors because of the rapid urbanization, young population, stable economic and integration, the middle class is increasingly while the market is increasingly transparent.
At present, foreign investors can easily access real estate market information, legal framework, project licensing procedures.
In the publication The impact on the future of the real estate market of Savills has announced that HCM City is ranked third in the world for real estate rents, ranked fifth in the world. investment potential and 2nd in terms of development potential.
The above information is considered as a positive signal to attract foreign investors in 2018. Especially, Troy Griffiths, deputy managing director of Savills Vietnam, Hochiminh City has entered the top markets with the best performance in the world with the high position has shown the market recover quickly and sustainably. This assessment is based on the beliefs of investors and the people, as well as the policies of the City to stimulate the market.
"This has helped Ho Chi Minh City to surpass all of the cities surveyed across the globe, becoming the number one choice for investors looking to buy office, retail and residential properties. "said Troy Griffiths.
(Source:baodautu.vn)
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