Property's FDI inflows have decreased by 61%
Foreign direct investment (FDI) in Vietnam’s property sector dropped by 61% YoY to $1.16bn in the first five months of the year, due to a stagnant market and significant job losses in the industry.
The property sector accounted for 10.7% of the total FDI, ranking third behind manufacturing and finance-banking, falling from second place in Q1. The number of newly registered real estate businesses also fell by 61% YoY to 1,744 in the same period, while over 550 companies were dissolved, a 30% increase.
Legal issues and disagreements over acquisition prices were cited as the main reasons for the decline in FDI, according to a report from Savills Vietnam at the end of last year.