






{"id":30215,"date":"2022-08-08T12:38:13","date_gmt":"2022-08-08T05:38:13","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=30215"},"modified":"2022-08-08T12:45:51","modified_gmt":"2022-08-08T05:45:51","slug":"fdis-ma-transactions-drive-real-estate-recovery-in-vietnam","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/fdis-ma-transactions-drive-real-estate-recovery-in-vietnam\/","title":{"rendered":"FDIs, M&#038;A transactions drive real estate recovery in Vietnam"},"content":{"rendered":"<p><span class=\"TextRun SCXW9043953 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW9043953 BCX0\">The young, dynamic workforce provides the <\/span><span class=\"NormalTextRun SCXW9043953 BCX0\">country with<\/span><span class=\"NormalTextRun SCXW9043953 BCX0\"> an edge in FDI appeal<\/span><\/span><span class=\"EOP SCXW9043953 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_30216\" aria-describedby=\"caption-attachment-30216\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-30216 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_132573962.jpg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_132573962.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_132573962-400x267.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_132573962-600x400.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/08\/shutterstock_132573962-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-30216\" class=\"wp-caption-text\">FDI disbursement surged 6.8 percent year-on-year to USD9.24 billion. JohnBill\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">In the second quarter of 2022, Vietnam&#8217;s GDP has reached its highest value yet in 11 years at 7.72 percent, outperforming its more developed neighbours in the region, according to <\/span><a href=\"https:\/\/www.cushmanwakefield.com\/en\/vietnam\/news\/2022\/07\/buoyant-real-estate-ma-market-in-the-first-half-of-2022\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Cushman &amp; Wakefield<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Foreign businesses have contributed to this growth, pouring in USD15.27 billion worth of foreign direct investments (FDIs) in the country or 97.4 percent of the reported amount in the same period last year, revealed the Ministry of Planning and Investment to <\/span><a href=\"https:\/\/en.vietnamplus.vn\/vietnams-real-estate-still-a-magnet-to-foreign-investors\/233684.vnp\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">VietnamPlus.<\/span><\/a><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The real estate sector alone raked in USD3.15 billion or 22.5 percent of the total registered capital. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Savills Vietnam is predicting further growth in the coming months due to the increased confidence in the market as one of the best-performing during the pandemic with a young, vibrant labour force. The property consultant also uncovered that roughly two-thirds of businesses that have invested in the local sector are large-scale.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">FDI disbursement in the period also surged 6.8 percent year-on-year to USD9.24 billion. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The top sector to attract foreign entities out of 18 segments is the manufacturing-processing industry, which gained USD6.98 billion and accounted for 45.7 percent of the total investment. Singaporean investors led the transactions with USD5.64 billion in total investments, followed by Japan with USD2.44 billion, and South Korea with USD2.05 billion.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Meanwhile, merger and acquisition deals have soared since the start of the year, with offices, homes, and industrial developments taking the lead. <\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cThe Vietnam real estate market has been attracting great attention from foreign investors, especially for profitable projects,\u201d said Trang Bui,\u00a0the country head\u00a0of Cushman &amp; Wakefield.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/why-vietnam-remains-upwardly-mobile-despite-pandemic\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Why Vietnam remains upwardly mobile, despite pandemic<\/strong><\/a><\/p>\n<p><span data-contrast=\"auto\">\u201cFor domestic investors, the purchase of land for project development is of higher priority. Every sector of the property market is gaining attention from investors. That being said, we believe that residential and industrial will be the most attractive sectors for investors and developers from HCMC, Hanoi,\u00a0and neighbouring provinces,\u201d added Trang.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The industrial sector has accumulated the highest number of\u00a0transactions in all sectors, amounting to 35 percent of the total transaction value with multiple deals. Frasers Property Vietnam\u2019s Binh Duong Industrial Park, winner of Best Industrial Development at the <\/span><a href=\"https:\/\/www.asiapropertyawards.com\/en\/71-winners-triumph-at-hybrid-gala-celebration-of-7th-propertyguru-vietnam-property-awards\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">7th PropertyGuru Vietnam Property Awards 2021<\/span><\/a><span data-contrast=\"auto\">, will be one of the developments that will benefit from foreign investors\u2019 growing interest.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As for the commercial sector, Viva Land\u2019s acquisition of a Grade A office building in Hanoi from the Awards\u2019 Best Sustainable Developer Winner CapitaLand Development (Vietnam) for USD550 million boosted the office M&amp;A market.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><span data-contrast=\"auto\">The housing segment also had a momentous period, with several major transactions this year.\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To guarantee that the local real estate sector continues to flourish, Prime Minister Pham Minh Chinh communicated the need to remove \u2018bottlenecks\u2019 in the sector during an online conference with the People\u2019s Committees of Hanoi, Ho Chi Minh, Da Nang, Hai Phong, and Can Tho, reported <\/span><a href=\"https:\/\/en.vietnamplus.vn\/pm-demands-removing-bottlenecks-in-real-estate-market-for-safe-healthy-development\/233749.vnp\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">VietnamPlus<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/6-of-the-best-spots-to-visit-in-thu-thiem-vietnam\/\" target=\"_blank\" rel=\"noopener\"><strong>More: 6 of the best spots to visit in Thu Thiem, Vietnam<\/strong><\/a><\/p>\n<p><span data-contrast=\"auto\">During his presentation, he cited the need to develop a \u201csafe, healthy, and sustainable real estate ecosystem without unreasonable credit tightening\u00a0but strengthening inspection and supervision and state management.\u201d<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Prime Minister encouraged the need for more tactical infrastructure development to motivate the sector and establish a new development space. He then appointed the Ministry of Construction to reexamine the current legal framework relating to the sector and recalibrate it to ensure that there are no rules that will impede the sector from achieving a durable and healthy environment.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">To prevent market risks and ascertain the proper use of capital, the State Bank of Vietnam will restructure the sector&#8217;s credit system. Other agencies, such as the Ministry of Natural Resources and Environment were also instructed to work with the Ministry of Finance and the Ministry of Justice to ensure that the legal system relating to the auction of land use rights is consistent and suited to the current state of the market.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The introduction of such measures by the Minister should eliminate the shortcomings in real estate investment, building, and trade, and should lead to a more stable and sustainable future for Vietnam\u2019s real estate market.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><i><span data-contrast=\"none\">To find out who will nab the prestigious titles and represent their country at the Grand Final, visit <a href=\"https:\/\/www.asiapropertyawards.com\/en\/award\/vietnam\/\" target=\"_blank\" rel=\"noopener\">asiapropertyawards.com\/award\/vietnam\/<\/a><\/span><\/i><\/b><b><i><span data-contrast=\"none\"> when we announce the winners on 21 <\/span><\/i><\/b><b><i><span data-contrast=\"none\">October 2022.<\/span><\/i><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email:\u00a0<\/span><\/i><a href=\"mailto:gynen@propertyguru.com\" target=\"_blank\" rel=\"noopener\"><i><span data-contrast=\"none\">gynen@propertyguru.com<\/span><\/i><\/a><i><span data-contrast=\"auto\">.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The young, dynamic workforce provides the country with an edge in FDI appeal <\/p>\n","protected":false},"author":9,"featured_media":30216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[1091,3099,394,135],"class_list":["post-30215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-fdi","tag-ma","tag-news","tag-vietnam","news_country-vietnam","news_author-gynen-kyra-toriano"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FDIs, M&amp;A transactions drive real estate recovery in Vietnam | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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