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Real estate market: Magnet for foreign investment

The real estate market is still the magnet for foreign direct investment with total registered capital of nearly US$2 billion in 2012, doubling the previous year’s figure, according to the General Statistics Office.

The figure accounts for 14.2% of the total FDI inflow despite the frozen status of the market.

Japanese investors took the lead in the market. Earlier on November 21, Becamex Tokyu, a joint venture between Japan-based Tokyu group and Viet Nam-based Becamex IDC launched a project capitalized at US$1.2 billion.

Mr. Toshiyuki Hoshino, General Director of Becamex Tokyu, said “many foreign investors have fled but we commit to long-term operations.”

He believed that the recovery possibility of Viet Nam’s real estate market is so clear thanks to its high birth rate and quick urbanization.

Meanwhile, Singaporean investors also show their determination to hold on to the market. Keppel Land company has poured capital to 18 projects worth US$2 billion.

President Linson Lim of Keppel Land said “I believe in the long-term potential of the Vietnamese market and we will introduce our new products during the 2013-2015 period.”

Similarly, Malaysia’s Gamuda Land and Viet Nam’s Sacomreal on October 10 this year launched the project “Celadon City”.

General Director Chow Chee Fan of the Malaysian company said before investing in Viet Nam, his company anticipated difficulties but Viet Nam still provides opportunities for investors with strong financial power and long-term vision.

“We believe in the thriving of Viet Nam’s future real estate market, especially urban complexes," he added./.

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