12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
FDI to Vietnam’s real estate rises by over 70% in 2022
Ngoc Mai 16:26, 2023/02/02
Vietnam's real estate market continues to show strong appeal to foreign investors despite global economic difficulties.

The foreign direct investment (FDI) into Vietnam’s real estate market in 2022 rose by over 70% yearly to US$4.45 billion, focusing on industrial and large-scale commercial projects, according to the Ministry of Construction (MoC).

 Real estate projects in Hanoi. File photo

The MIC’s report suggested that real estate stands second among sectors with the highest FDI attraction in 2022, which showcases “the strong appeal of the market to foreign investors amid a difficult global economic environment.”

Neil MacGregor, Managing Director of Savills Vietnam, echoed this view by saying foreign investors remain attracted to Vietnam, especially in production, retail, logistics, and real estate.

He expected the attention from foreign investors would help the local real estate accelerate the recovery process this year.

Regarding this sentiment, HSBC in its latest report said Vietnam remains an attractive destination in ASEAN for foreign investors. It referred to the fact that traditional tech giants such as Samsung and LG have announced expansion plans, with an investment worth $2 billion from the former and $4 billion from the latter, to deepen supply chains in Vietnam.

Meanwhile, it has also been reported that Apple will start making MacBooks in Vietnam by mid-2023 with an investment of more than $300 million. The move followed its supplier Foxconn's decision to lease 50.5 hectares of land in Bac Giang last August with an investment of more than $300 million.

Data from the Foreign Investment Agency, under the Ministry of Planning and Investment, revealed that, as of December 20, the total number of valid foreign investment projects in the sector was 1,072, for a combined value of US$ 66.3 billion, representing 15.1% of the total FDI commitments accumulated in the country.

Last year, major real estate projects in the country were the $500-million smart city project in Binh Duong financed by CapitaLand (Singapore) and local infrastructure development Becamex.

Another property developer from Singapore, Keppel Land, signed in 2022 an agreement to acquire a 40% stake worth $119 million in three land plots in Hoai Duc District, Hanoi from Phu Long Real Estate Company. The Singapore-based firm aims to invest in an apartment building project with nearly 1,020 units.

In August 2022, property developer Novaland announced a loan agreement of $100 million from Singapore’s investment fund Credit Opportunities III Pte, along with another investment of $250 million from the Warburg Pincus-led consortium.

"With Southeast Asia among the most attractive region for foreign investors, Vietnam, along with Singapore and Malaysia, whose manufacturing sector is a key growth pillar, is taking the lion’s share in the region," stated HSBC.

Hanoi plans to attract $30-40 billion worth of FDI and disburse 70% of them in 2021-2025. The city is accelerating the construction of new industrial parks and clusters to fulfill the plan of building two to five industrial parks during the period, said Vice Chairman of the Hanoi People's Committee Nguyen Manh Quyen.

TAG: Vietnam FDI Vietnam real estate
Other news
21:38, 2023/38/23
Vietnam ready upgrade US ties on 10th anniversary of comprehensive partnership
The US was the largest export market to Vietnam in 2022 with Vietnamese exports to the former reaching US$100 billion.
11:37, 2023/37/22
Largest-ever US business delegation seeks investment opportunities in Vietnam
The fact that the visit to Vietnam this time has the largest number of US companies ever indicates a shift in the investment wave to Vietnam and other ASEAN countries.
15:32, 2023/32/09
China's Sunny Group plans US$2.5 billion investment in Vietnam
The Vietnamese Government will ensure favorable conditions for Sunny Group to succeed in their investment and business operations in the country.
21:51, 2023/51/06
$8 billion to be pumped into Vietnam’s Central Coast
Seven international partners will support the investment in infrastructure, transport, urban development, and climate response.
16:26, 2023/26/02
FDI to Vietnam’s real estate rises by over 70% in 2022
Vietnam's real estate market continues to show strong appeal to foreign investors despite global economic difficulties.
21:36, 2023/36/12
Laos vows to facilitate Vietnam's investors
The Government of Laos pledged to amend the law to facilitate the investment of Vietnamese companies that have poured more than US$5.34 billion in the neighboring country so far.