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Foreign direct investment in real estate down 45 percent year-on-year

FDI in the real estate sector reached US$1.94 billion in the first nine months of 2023, down 45 percent year-on-year, Vietnam Plus is reporting.

Why it matters: The real estate sector has hit hard this year on the back of bond frauds and several high-profile arrests in the sector. This has been exacerbated by a credit crunch at the end of last year that saw cash flows in the sector freeze up, the carry-over effects of which have made it difficult for real estate firms to meet minimum risk requirements to borrow from banks. Furthermore, demand is well down as a result of a number of projects now on hold due to said capital challenges which has seen a drop in consumer confidence. There has been speculation throughout the year that this would see strong growth in mergers and acquisitions from foreign sources, but these latest figures would suggest this has not been the case. 

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