In January, Vietnam’s real estate business activities sector registered a total of US$1.02 billion in new foreign direct investment (FDI), according to data from Vietnam’s Ministry of Planning and Investment. This represents an increase of US$333.76 million compared to December, which saw US$683.3 million invested.
The real estate sector accounted for 23.46 percent of total FDI in January, up from 9.98 percent in December.
Of note, Vietnam’s real estate industry has been one of the key drivers of the country’s economic development, fueled by rapid urbanisation, rising middle-class incomes, and expanding infrastructure.
The industry spans a wide range of sectors, including residential, commercial, industrial, and retail real estate. Major cities like Hanoi, Ho Chi Minh City, and Da Nang have witnessed substantial growth in both residential and commercial property markets, with significant investments in high-end apartments, office spaces, and mixed-use developments. The demand for affordable housing has surged alongside a growing urban population, while luxury real estate projects have become more prevalent, catering to both domestic and international buyers.
Foreign direct investment (FDI) has played a crucial role in shaping the industry, with international developers like CapitaLand, Keppel Land, and Lotte contributing to high-profile projects across the country. These investments have helped to modernise the sector and elevate the overall quality of developments.
Despite this, the market faces challenges, including rising construction costs, regulatory complexities, and the potential oversupply of luxury properties in certain areas. Additionally, the COVID-19 pandemic caused a temporary slowdown in some segments, particularly the commercial and hospitality sectors from which the industry is still struggling to recover.
See also: Real Estate Industry in Vietnam