Despite a downturn in the domestic market, foreign direct investment (FDI) in the real estate sector maintained its second-highest position last year.
Joyoung Universal Group, a developer with over 50 real estate projects in Taiwan, entered the Vietnamese real estate market through a strategic shareholding contract with Tin Hung Investment on January 15.
In the final days of 2023, Malaysian real estate giant SkyWorld Development Berhad announced plans to construct apartments in Ho Chi Minh City through its subsidiary, SkyWorld Vietnam. The company invested $14.6 million to acquire all shares of Thuan Thanh Real Estate Trading and Production for a 24-storey project in District 8.
SkyWorld founder Ng Thien Phing emphasized Vietnam as the group’s top priority for investment, marking their first international joint venture.
In November, the People’s Committee of Binh Duong province approved the transfer of Binh Duong Urban Service-Industrial area to CapitaLand unit Sycamore Co., Ltd. for over $242 million. This project encompasses 462 low-rise villas and approximately 3,300 apartments.
CapitaLand also revealed Lumi Hanoi in November, a project with an estimated gross development value of $760 million, set to begin construction in early 2024, featuring 4,000 luxury apartments.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, as of December 20, total registered foreign capital in Vietnam reached nearly $36.6 billion, a 32 percent increase compared to the same period last year.
The real estate business ranked second in terms of industry, attracting nearly $4.67 billion, constituting over 12.7 percent of the total registered capital, reflecting a 4.8 percent increase.
Presently, nearly 50 countries and territories invest in Vietnam’s real estate sector, with leaders such as Singapore, South Korea, and Japan.
Faced with the surge in foreign capital inflows, VNDirect experts believe that the positive change is driven by foreign businesses anticipating recovery demand in developing countries amid cooling inflation and reduced inventories.
Meanwhile, the Wealth Report 2023 by Knight Frank highlighted Vietnam among the top five real estate investment destinations for Singapore’s super-rich, particularly those with a net worth of $30 million or more. Ho Chi Minh City ranks third in affordable luxury apartments worldwide, following Sao Paulo and Cape Town.
