Vietnam has to date attracted 37,500 foreign direct investment (FDI) projects worth nearly 450 billion USD, including 1,100 projects in real estate with a total capital of 66.4 billion USD, heard an international workshop in Hanoi on July 13.

Speaking at the workshop on development potential of Vietnam’s real estate market organised by Nha dau tu (Investor) magazine, Nguyen Anh Tuan, deputy head of the Foreign Investment Agency under the Ministry of Planning and Investment, said real estate ranks second in FDI attraction, only after processing and manufacturing.

Among the 48 countries and territories investing in Vietnam’s real estate market, Singapore takes the lead, followed by the Republic of Korea (RoK) and Japan, he added.

Foreign investments have flown into 45 cities and provinces, of which HCM City accounts for a lion’s share with 16 billion USD(24.7%), followed by Hanoi, and the southern provinces of Binh Duong and Ba Ria-Vung Tau.

Tuan noted that most foreign investors in real estate are large-scale firms, and many projects are worth up to billions of US dollars, explaining that Vietnam has advantages in terms of political stability, high economic growth, competitive production cost, abundant workforce, favourable geographical location, open, transparent investment environment, and upgraded infrastructure, among others.

The official noted that over the past 35 years, foreign investors have contributed to standardising the Vietnamese real estate market, and building facilities that meet regional and international standards.

Apart from industrial real estate, other segments like housing and resort have also become a magnet to foreign investors, he added.

Tuan also pointed to issues that are hindering FDI projects like the complicated legal system and administrative procedures and tightened credits and government bond issuance, which he said need to be fixed in the time ahead.

Joseph Low, president of Keppel Land Vietnam, suggested Vietnam ensure land supply amidst its rapid urbanisation and the growing middle class, and optimise land in central areas, towards a sustainable real estate sector.

VNA