The real estate sector has accounted for almost one fourth (23 percent) of all foreign investment in Vietnam , with 49.8 billion USD poured into 389 projects by the end of 2012.
Illustrative image (Source: VNA)
With 163 projects worth 12.4 billion USD, Ho Chi Minh City tops the list of localities attracting FDI in property. The city is followed by Hanoi , Ba Ria – Vung Tau, Phu Yen, Binh Duong and Dong Nai.
Singapore is the largest investor in Vietnamese property with 55 projects totalling 8.6 billion USD. The Republic of Korea ranked second with 79 projects worth 6.7 billion USD. Other key players are Malaysia , Brunei and Canada .
According to the Ministry of Planning and Investment, almost all FDI property projects have been implemented in line with registered purposes.
However, in the current freezing real estate market brought about by the economic downturn, a number of foreign investors did not complete their projects as pledged. Several major projects have had their licences withdrawn due to long delay, including the 11.4 billion USD Innovative City project in Phu Yen and the 4.15 billion Dragon Beach bio-tourism Park in Quang Nam .
In addition, legal and administrative bottlenecks also slow down the pace of a number of urban area development projects.
The ministry said that in the coming time, it is necessary to set up a legal foundation for both domestic and foreign property investment in order to attract greater FDI to the sector.
At the same time, it is essential to build effective management mechanisms to prevent foreign investors from registering high-capital projects, then to only invest a small amount with the majority of investment coming from domestic clients.
Source : VNA