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News Release

Vietnam

Vietnam Market Weekly Highlight W1 2016

Foreign direct investment in the local real estate sector is expected to rise in 2016 given the positive property development outlook.


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More foreign investors eye real estate market

Foreign direct investment in the local real estate sector is expected to rise in 2016 given the positive property development outlook. David Blackhall, managing director of VinaCapital Real Estate, said that, “Since early 2015, Vietnam has been on the radar of foreign investors in general, particularly for real estate investment opportunities. Recent real estate transactions show that the majority of foreign companies investing significant capital in Vietnam are based in Asian countries such as Japan, South Korea, the Philippines, Singapore, Hong Kong, and Malaysia.”



Vietnam property market poised for solid 2016

The Vietnamese property market is entering 2016 after witnessing recoveries of firms in 2015, driven by macroeconomic improvements and policies of openness. Vietnam has come through an extended period of consolidation, and looks poised to lead the regional real estate markets over the next two to three years. The construction ministry’s statistics showed that the number of successful transactions in the first 11 months of 2015 increased by about 80 percent year-on-year, with 17,750 transactions in Hanoi and 17,050 in Ho Chi Minh City.



Buy-to-let sector reaps rich dividends

The buy-to-let trend has been sweeping across major cities in Vietnam, offering high yields and a stable investment strategy for buyers. In HCMC, properties at a variety of projects in districts 2 and 7 are being snapped up by leasers. Meanwhile, foreigner immigration has led to a surge in projects that boast an infrastructure system containing features such as healthcare centres, spas, schools, trading centres, and leisure facilities. In Hanoi, the most desirable areas for foreign leasers are still around West Lake and in the central business districts (CBD), while domestic leasers tend to focus on non-CBD.



Vietnam welcomes record high FDI

Foreign capital flowing into Viet Nam reached a record high last year, promising more economic growth but more competition for domestic companies. According to the General Statistics Office, there were over 2,000 FDI projects with total capital of USD15.6 billion, along with another 814 projects expanding their investment to USD 7.2 billion by the end of 2015, a year-on-year increase of 12.5%. One of the most significant FDI projects was the South Korean-based Samsung Electronics HCM City CE Complex.



Vietnam lists 17 sectors open for foreign investment

The Vietnamese government has published a list of 17 business sectors that are open to foreign investors, with some conditions, in a bid to improve the investment environment following this year's record inflow of foreign capital. Until now, Vietnam - often criticised for a lack of transparency in investment regulations - had not fully specified the conditions applied for foreign investors after having eased the foreign ownership cap in many listed firms. Based on government data, Vietnam received an estimated USD14.5 billion FDI disbursements in 2015, a record and 17.4 per cent up from the previous year.



Transport Ministry to complete many key projects in 1Q16

The Ministry of Transport looks set to put into use 14 important projects and break ground for 10 others in the first quarter of this year. The road and bridges to be opened to traffic from January to March this year include the upgraded section of a road network in the Greater Mekong Subregion in Vietnam’s northern province of Thanh Hoa, Tan Phong Bridge in Nam Dinh Province, and the National Highway 61 section from Cai Tu to Go Quao in the Mekong Delta province of Kien Giang.

 

Gamuda sets new standard in capital city

Nestled in the southern gateway of Hanoi, Gamuda City, developed by Gamuda Land Vietnam, has become the prime choice for many homebuyers in the capital. In December 2015, Gamuda Land Vietnam offered leases in their Le PARC prime commercial area. Covering more than 20,000 square metres, this is the first retail project Gamuda Land Vietnam has developed in Hanoi, and one of the four main components of the mega investment project Gamuda City, which is scheduled to begin operations from March 2016.



Facing budget hurdle, Vietnam turns to private investors for transport projects

Prime Minister Nguyen Tan Dung has ordered the transport ministry to create more favorable policies to attract private investment into public infrastructure projects, saying the government's financial resources are limited. The country will need a total of around VND1,000 trillion (USD44.52 billion) for transport projects in the period. The government will be able to raise less than 29 percent of that cost estimate, the Ministry of Transport said in a report in July.

 
 
 
 
 
 
 
 
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