The Hanoitimes - Vietnam has been extremely one of the most attractive destination for Asian investors, especially those from Japan, the Republic of Korea and Singapore in the recent 10 years, according to CB Richard Ellis (CBRE) Director of Research, Consulting and Asset Management Services Nguyen Hoai An.
The Overseas Investment Agency under the Ministry of Planning and Investment said that the real estate sector lured the second largest volume of foreign direct investment with 34 new projects worth 1 billion USD in the first nine months of this year, accounting for 6.1% of the total.
CB Richard Ellis (CBRE) Director of Research, Consulting and Asset Management Services Nguyen Hoai An said Vietnam has been extremely attractive to Asian investors, especially those from Japan, the Republic of Korea and Singapore, at least in the recent 10 years.
She noted that investors consider market potential, penetration opportunity and capital safety before deciding to invest in any overseas property market.
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Foreign investors tend to buy up existing projects or start new ones from scratch, An added.
Particularly, Japanese investors have shifted their interest from industrial properties to housing and offices over the past two years.
According to real estate services provider Savills Vietnam, along with housing and commercial office buildings, foreign investors have also paid attentions to industrial real estate.
Vietnam is emerging as a bright spot for investment thanks to its waterway and road connectivity with China, Savills Vietnam said, adding that the country’s membership to ASEAN and a number of free trade agreements has lured a surging amount of FDI, especially since the conclusion of negotiations on the Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement at the end of 2015.
The real estate services provider Savills Vietnam also said that the rising labour cost in China is putting pressure on labour-intensive industries such as garment, footwear and mechanical engineering, which leads to the departure of foreign enterprises to seek better manufacturing conditions, especially in labour cost.