New foreign direct investment (FDI) approvals in the real estate sector in the first half of this year amounted to nearly US$605 million, well above US$465.5 million in the same period last year, according to the Foreign Investment Agency.
The real estate sector was responsible for 5.3% of total FDI pledges in the first six months. The period saw 25 new projects licensed in the sector.
The largest FDI property project in the January-June period was Midtown capitalized at more than US$225.6 million in HCMC, and registered by an investor from Cayman Islands.
There were a number of merger and acquisition (M&A) and cooperation deals involving foreign firms in the sector. Particularly, Keppel Land, which has developed a range of large projects in Vietnam, signed a conditional investment agreement to acquire a 40% equity interest in Empire City Limited Liability Company.
Empire City is the developer of the US$1.2 billion Empire City complex which is under construction in the Thu Thiem New Urban Area in HCMC’s District 2.
Creed Group, An Gia Investment and Phat Dat Real Estate Development Company inked a deal to spend VND12 trillion (US$500 million plus) on River City comprising 8,000 apartments, retail and other facilities on 11.25 hectares in District 7, HCMC.
Sapphire JSC under Australia’s Sakkara Group is looking to invest in property projects of medium and large scale.
Experts said the real estate market would continue recovering this year with growth of no lower than last year.
In the first six months of this year, FDI approvals for fresh and operational projects totaled US$11.3 billion, a year-on-year spike of 105.4%, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Of the 19 sectors with FDI pledges in the period, the processing and manufacturing sector took the lead with US$8.06 billion registered for 488 new and 405 operational projects, or 71.4% of the total FDI approvals in the first half.
Photo: CBR Investment AG