FDI Capital Poured Masively into Real Estate in Ho Chi Minh City

FDI Capital Poured Masively into Real Estate in Ho Chi Minh City

According to HCM City Real Estate Association (HoREA) report, in the first 10 months of 2017, the country attracted foreign direct investment (FDI) $ 28.24 billion, up 1.6 times over the same period last year. ( US$ 17.6 billion in the first 10 months of 2016), the highest increase in 10 years.

HCMC attracted $ 5.03 billion of FDI, leading the country twice as many as in the first 10 months of 2016; Among them, the manufacturing and processing industry ranked first, accounting for 34.5%; Real estate sector accounted for 32.9%, ranking second.

The most positive signal of FDI flows in the market is Japanese investors, in which Nishi Nippon and Hankyu cooperate with Nam Long Investment Corporation to build the Mizuki Park residential area project with an area of 26 ha in Binh Chanh District, Ho Chi Minh City, total investment of $ 351 million is a testament.

Son Kim Investment and Development Group (Son Kim Land) recently also called for $ 100 million capital to develop successful project from Japanese investors. At the same time, the famous Japanese retailer group, Aeon Mall, officially co-operated with BIM Group to develop the second Aeon trade center in Hanoi with an area of 16.7 ha, estimated total capital of $ 200 million.

In addition, 65% of Times Square Complex's share worth $ 41 million of VinaCapital was also transferred to Elite Capital Resources Co., Ltd. According to the HoREA report, city remittances in the first nine months of the year reached more than $ 3.3 billion, up 6% over the same period last year; Of that, about 22% of remittances are invested in the real estate sector.

According to HoREA, credit institutions mobilize capital of VND1.98 trillion, up nearly 14% compared to the same period last year; Of which, savings deposits accounted for 51.6%, and the positive factor was that the rate of long-term savings over 12 months tended to increase, accounting for about 34% of total savings deposits.

HoREA's assessment also shows that thanks to high credit growth, outstanding accounts are estimated at over 1.6 trillion dong, up 19.5% compared to the same period last year. Thus, the city can achieve the target of 21% credit growth in 2017 as directed by the Government and the State Bank.

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