Foreign Investors Find Vietnamese Real Estate Attractive

As per insider reports, the Vietnamese real estate market has continued to allure foreign investors and investment funds despite facing competition from domestic firms.

Foreign Investors See Promise in the Vietnamese Real Estate Sector

Recently released by CBRE Vietnam, the 2023 Asia-Pacific Investor Intentions Survey revealed that Ho Chi Minh City and Hanoi are among the top 10 sought-after destinations for trans-border investment. In an unprecedented achievement, Ho Chi Minh City secured the third spot on the list, surpassing Australia.

Investors from Asian countries and territories, namely Hong Kong, Singapore, China, South Korea, and Japan, showed the most significant interest in Vietnam.

Singaporean firms in Vietnam carried out several large-scale deals at the start of 2023.

In February, Keppel Land, a property developer with over 20 projects worth $3.5 billion globally, inked a memorandum of understanding with Vietnam's Khang Dien Group to collaborate on sustainable urban development projects and residential area construction in Ho Chi Minh City.

CEO Louis Lim expressed his enthusiasm for Vietnam, one of Keppel Land's significant markets with substantial long-term potential, and he affirmed the company's commitment to enhancing its presence in the country.

Similarly, Sembcorp Development has partnered with Becamex IDC to build five environmentally friendly, intelligent, and sustainable industrial parks in Vietnam over the next three years. The total investment in this project is expected to be around $1 billion. These industrial parks will be constructed with a focus on green, innovative, and sustainable features, incorporating advanced technologies in management.

According to the PropertyGuru Group's report, "Vietnam Real Estate: Perspectives from China and Southeast Asian Countries," Vietnam's economic growth has been made possible by its open monetary policy and integration into global supply chains. A robust supply chain plays a crucial role in the country's financial strength and the appeal of its real estate sector to foreign investors.

The report suggested that the completion and expansion of Vietnam's transport infrastructure, including seaports, highways, high-speed railways, and airports, would make the country's real estate sector even more appealing to foreign investors, both in terms of direct and indirect investment.

In 2022, the real estate sector garnered the second-largest foreign direct investment (FDI) amount, per the Foreign Investment Department under the Ministry of Industry and Trade. The sector secured over $4.45 billion in FDI, accounting for 16.1% of Vietnam's overall FDI influx.

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