Foreign direct investment capital registered to pour into Vietnam’s real estate last year reached more than 6.3 billion USD, accounting for 16.5% of total FDI capital registered in Vietnam in 2024.
The General Statistics Office’s report said that total foreign direct investment (FDI), including new investment, capital adjustment, capital contribution, share purchase, capital contribution purchase, and registration in Vietnam in 2024 reached 38.23 billion USD, down 3% compared to the previous year.
Of which, total FDI capital in the real estate business sector last year reached more than 6.3 billion USD, up 35% and continued to rank 2nd in the group of sectors attracting the most FDI capital in the year, after the processing and manufacturing industry with nearly 25.58 billion USD in capital attracted.
The report also said that the amount of FDI capital implemented in Vietnam in the whole year of 2024 is estimated at 25.35 billion USD, up more than 9%. Real estate business activities alone accounted for 1.84 billion USD, up 60% compared to 2023.
A recent report by Avison Young Vietnam also stated that FDI capital flows tend to flow more into the real estate sector in the context of global production not fully recovering and major real estate markets in the world are quite gloomy.
According to the market research unit, this shows the attractiveness of Vietnamese real estate in the eyes of foreign investors.
“In addition to positive assessments of policy conditions, investment environment, population or urbanization in Vietnam, investors also see demand exceeding supply in most key segments such as industry and logistics (I&L), housing, offices and retail”, the report by Avison Young Vietnam stated.
According to real estate services firm Cushman & Wakefield, Vietnam is still an emerging market in terms of attracting investment with attractive rates of return. Currently, the profitability of residential real estate segments is about 8-10%/year, higher than the 2-3%/year of some countries in the region.
Ms. Nguyen Le Dung, Head of Brokerage and Investment at Savills Hanoi, said that investors from Singapore, Japan and South Korea are countries with active activities in Vietnam. Meanwhile, investors from the US and European countries are also increasingly interested in the Vietnamese market.
According to Savills experts, FDI capital flows tend to flow into residential real estate. This type continues to attract much attention due to urbanization and increasing demand for housing in major cities in Vietnam. The supply of new projects is recorded at a low level due to legal restrictions, making this segment always receive great attention from foreign investors.
In addition, industrial real estate is also interested thanks to the strong development of the manufacturing industry in Vietnam. The growth of this segment is driven by the presence of many foreign investment funds and investors, focusing on Grade A warehouse and factory projects, meeting high standards and quality in the market.
The commercial real estate segment also attracts investment thanks to the development of the retail and service market. This reflects the increase in demand for growth in parallel with the urban real estate type and is supported by factors such as the shift in people’s consumption habits, with more and more customers prioritizing shopping experiences at shopping centers and closed multi-functional service spaces.
According to this expert’s observation, investors now tend to prioritize private enterprises, thanks to their flexibility and ability to adapt quickly in operation. The scale and total investment of investors are very diverse and will change depending on each development segment.
