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PROPERTY

ietnam attracted FDI of market, helping attract higher lev-
nearly $36.6 billion in 2023, els of investment.
V a 32.1 per cent increase The government has approved
compared to 2022, figures from planning for nearly 40 cities and
the Foreign Investment Agency provinces, with the remaining
(FIA) at the Ministry of Planning governance (ESG) standards, which Analysts believe localities expected to secure
and Investment reveal. is expected to lead to greater that the amended approval sometime this year, which
There were 3,188 new FDI proj- demand for office space that meets Land Law will will help tackle planning-related
ects granted investment licenses, green standards. create growth difficulties in a range of projects
with total registered capital of nearly By 2026, Ho Chi Minh City is drivers and and boost investment attraction,
$20.2 billion, up 56.6 per cent in expected to welcome 300,000 sq strengthen trust particularly FDI.
project numbers and 62.2 per cent m of new office space that meets within society, In order to gain the trust of
in capital year-on-year. More than such standards. In Hanoi, from businesses, and investors, Chairman of the Viet-
$7.88 billion was added to 1,262 now to 2026, there will be 15 new investors. nam Real Estate Association
existing FDI projects, up 14 per projects supplying over 389,770 Nguyen Van Khoi proposed that
cent in number but down 22.1 per sq m of such office space for lease. State management agencies soon
cent in capital compared to 2022. Grade A office space is forecast issue a circular guiding the imple-
Meanwhile, Fitch Ratings to account for 86 per cent of supply mentation of the Land Law 2024,
recently upgraded Vietnam’s long- in the future. The total area of to help tackle obstacles while har-
term foreign-currency issuer green office space is estimated to monizing it with the Law on
default rating (IDR) from “BB” to account for 18 per cent of future Housing and the Law on Real
“BB+” with a stable outlook. office floor space in Hanoi. Estate Business and preventing
The country is tipped to post Regarding housing, despite the any overlaps.
GDP of 6-6.5 per cent for 2024, continued gloom in the market, To clear bottlenecks in issuing
due largely to stable FDI attraction many major investors offered new documents, it is necessary to
and efforts of the government to housing products in the closing adopt solutions to relieve any
tackle difficulties in the real estate months of 2023. fear of making errors at man-
sector, boost public investment, “One piece of good news is that agement agencies from the central
and adjust economic policies in a the market has recently seen the to provincial levels. It is also nec-
timely manner to promote growth. adoption of important laws, includ- essary to improve the operations
ing the amended Law on Real of the Prime Minister’s Special
Estate Business, the amended Law
Trust among foreign investors Task Force.
There was a huge amount of on Housing, and the amended Special attention should be
foreign investment in the latter Land Law,” said Mr. Matthew Pow- paid to studying mechanisms and
part of 2023, to the benefit of the ell, Director of Savills Hanoi. policies to develop related sectors
real estate sector. The HiteJinro “These new laws can be seen as a such as tourism and services, to
Group, the largest beverage pro- very positive sign for investment, ensure that the real estate market
ducer in South Korea, decided to strengthening the trust of investors. has a solid foundation and can
invest in the construction of a The Vietnamese market having develop in quality. This is con-
beverage plant with total capital actual demand for housing and sidered key to helping secure the
of an expected $100 million on a trust in office space for lease and trust of customers and investors,
site of 8.2 ha in northern Thai industrial real estate will be crucial particularly in the resort real
Binh province. this year. However, we must still estate segment.
The Deli Group, meanwhile, wait for guiding documents on Savills added that long-term
will invest $270 million in building these laws to more clearly observe challenges such as prolonged high
a 21.2 ha stationery factory at the the changes.” interest rates and economic and
expanded Dai An Industrial Park geopolitical instability around the
in northern Hai Duong province. 2024 prospects globe have continued to hinder
The Hyosung Group from South In forecasts for Vietnam in investment all around the Asia-
Korea also revealed it will invest 2024, analysts have said its econ- Pacific region over the past year.%
$720 million in building a carbon omy in general and its real estate
fiber factory in southern Ba Ria- market in particular will still
Vung Tau province. encounter challenges. Such fore-
Retail was also marked by vibrant casts are based on the global situ-
activities from foreign investors. In ation, which remains complicated
September, Lotte officially opened and problematic, together with
Lotte Mall West Lake Hanoi on a internal difficulties in Vietnam
total floor space of over 354,000 sq that are yet to be fully addressed.
m. Elsewhere, THISO opened a However, analysts also believe
third supermarket in Ho Chi Minh that the amended Land Law will
City and plans to invest in the north- create growth drivers and
ern region after purchasing a land strengthen trust within society,
area of 2.4 ha in Hanoi. businesses, and investors. Public
In the office segment, 85 per investment has been boosted in
cent of fast-growing companies in many regions around Vietnam
Vietnam have committed to com- and is certain to generate growth
plying with environmental, social, in the economy and the real estate

en.vneconomy.vn April 2024 Vietnam Economic Times 47