In its report on reality and measures to develop the sector to People’s Committee in Ho Chi Minh City, the Ho Chi Minh City Real Estate Association (HoREA) said that foreign direct investment (FDI) enterprises tend to spend more on buying houses in HCMC.
The first five months of the year saw FDI capital pouring a total of US$216.3 million into the real estate sector. As of late 2017, some 7,372 FDI projects had been approved with total registered capital of US$45 billion in the city; most FDI capital come from Japan, South Korea, Singapore, the US and China.
HoREA said that more joint-venture realty estate companies have powerful resources thanks to FDI capital such as Phu My Hung Corporation.
Nam Long company cooperates with two Japanese investors, Hankyu Realty and Nishi Nippon Railroad or Tien Phuoc, Tran Thai companies with Singaporean company Keppel Land.
Not only FDI capital but also remittances to HCMC flow into realty estate sector. Overseas remittance to HCMC accounts for half of overall overseas remittance to the country averagely of $10 billion annually or HCMC receives remittance of roughly $5 billion. Twenty-one percent of $5 billion pours into property sector.
HoREA said massive flows of FDI capital into realty estate sector were due to Vietnamese government’s new policies on property investment which allows foreign investors can invest the sector like local peers and foreign investors can acquire stakes in the equitization of State-owned enterprises.